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September 30, 2009

Internet overtakes TV as UK’s leading ad sector

By Roberto Barros

For the first time advertisers in the UK are spending more money on the internet than on TV ads, a report by the Internet Advertisement Bureau has shown.

Spending on internet advertising reached £1.7bn in the UK during the first six months of 2009 – growing 4.6% year-on-year growth, according to a report released today by the IAB.

It is a landmark moment for the beleaguered TV industry as advertising in this sector dropped 17% year-on-year, to £1.6bn.

The UK has become the first major economy to see internet advertising overtake TV ad spend, which has traditionally been the main medium for advertisers.

The internet now claims a 23.5% share of the UK advertising market, the TV market now claims a 21.9% share.

The IAB report said faster broadband speeds, more sophisticated online techniques and a greater amount of time spent online contributed to the rapid growth in ad spend on the web.

More than £1bn of the total £1.75bn spent online was for search engines ads, a rise of up 6.8% on the same period last year.

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Online classified advertising now accounts for 22% of total internet ad spend, the IAB said, as the sector grew 10.6% to a total spend of £385m.

Online display advertising fell 5.2% from its 2008 position to £316.5m, while online video advertising grew to almost 300% year-on-year to around £12m.

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