PwC: UK DIGITAL AD SPEND GROWS 12.6% TO £2.6 BILLION

By Rob Starr, Content Manager, Big4.com

According to the latest Internet Advertising Bureau UK (IAB) advertising expenditure report, conducted by PwC, advertising on the internet and mobile phones increased, like-for-like by 12.6% to a record six-month high of £2.59 billion in the first half of 2012– up by over £294 million from £2.30 billion in the first half of 2011.

Classifieds grew 7.2% like-for-like to £427.1 million from £391.5 million – accounting for 16% of digital ad spend in the first half of 2012. Recruitment classifieds showed encouraging growth, at 149.8 million in H1 2012 compared to 135.4 million in H2 2011 – up 11% – their highest level since the first half of 2008.

Fuelled by smartphone ownership hitting 58% of the UK population in June 2012, mobile advertising continued its meteoric rise, growing like-for-like by 132% to £181.5 million in the first half of 2012. Mobile now accounts for 7% of all digital ad spend.

Paid-for search marketing continues to thrive due to its transparent and measurable nature, appealing during these budget-pressured times. Year-on-year, search increased 15.9% on a like-for-like basis to £1,527 million from £1,318 million – representing a 59% share of digital advertising.

Display advertising across the internet and mobile, boosted by the increase in video and banners in social media, grew by 10.6% year-on-year on a like-for-like basis to £590.9 million from £534.7 million, representing a 23% share of digital ad spend in the first half of 2012.