Online Advertising

Fastest Growing Medium:

The role of the Internet in advertising continues to grow faster than any other medium. £2.81bn was spent on online advertising in the UK in 2007 according to PricewaterhouseCooper & the IAB (Internet Advertising Bureau).

revenues Source: IAB, 2008

The Internet boosted the UK advertising economy in the first half of 2007, with a 41.3% growth.

Online is now the second largest ad medium behind TV. Online is set to overtake TV in 2009 and become the leading medium for advertising (The Guardian, 08)

Internet Usage on the Up:

  • 40.3 million people are online in the UK – 66.4% of the population (Internet World Stats, 07)
  • The average internet user in the UK spends around 23 hours a week online (YouGov, 07)
  • 42% of adults in N.Ireland have Broadband at home (Ofcom, 07)
  • Northern Ireland is 100% broadband accessible

Internet as a Marketing Tool

  • Advertise products & services
  • Provide purchase information, where & how to buy
  • Build customer loyalty & branding
  • Generate leads and direct response
  • Drive traffic online and offline
  • Email marketing
  • Collecting customer information (data surveys, registration data)

The online industry has experienced strong growth across all advertising formats.

revenues Source: IAB, 2008

Online Adevrtising is Effective

Online is an important advertising tool both for branding and direct response objectives. Research by the IAB & EIAA* has proven the effectiveness of online advertising - either in its own right or as part of an integrated traditional media campaign – to increase brand awareness, message recall and purchase intent.

What makes the Internet unique is that it shares many of the strengths of traditional media yet also offers a number of specific advantages:

  • Coverage - There are 40 million internet users in the UK**. This represents over 66% of the population and is expected to grow by 13% in three years.
    There are 1.69 million adult internet users in the Republic of Ireland***. This represents 49% of the population.
  • Reach of leading websites has overtaken that of many traditional mediums - The internet is now the most consumed media. Overcoming more traditional methods.
  • Creative - The Internet is unlike any other media in that it presents the opportunity to utilise text, graphics, animation, audio and video in one format. With the recent uptake of Broadband user experience of the Internet is much more rewarding.
  • Highly Targeted & Focused - Online has the ability to target advertising more precisely e.g. by user location, content of web pages etc allowing more focused media placement.
  • Interactive - Advertising online allows consumers to interact and engage with advertisements, generate response and brand recall
    • Adaptable - Updating and changing copy and graphics can be accomplished more quickly with online ads than with traditional media. Online adverts can be therefore be quickly revised to reflect changing messages throughout the duration of the campaign.
  • Measurable - Online offers transparent accountability that no other medium can offer
  • Adaptable - Updating and changing copy and graphics can be accomplished more quickly with online ads than with traditional media. Online adverts can therefore be quickly revised to reflect changing messages throughout the duration of the campaign.

*Interactive Advertising Bureau & European Interactive Advertising Association
***Joint National Internet Research 2008