Online continues to thrive according to IAB report

by Peter Young on October 9, 2008 · 4 comments

According to the latest IAB figures, spend in online continues to flourish, despite the doom and gloom in many of the financial markets and regular talk of recession. Figures for online showed

  • £1.682.5m was spent during H1 2008 – an increase over 348.2m year on year
  • Thats a 21% increase on H1 2007
  • Despite many markets shrinking (Direct Mail 5.9%, Outdoor 4.2%), Online continued to grow significantly – up by early 20.9%
  • Market share up to nearly 19% up fromm 15.9% in H2 2007
  • Spend in online was only just below Press Display (1737.7m) and Television (1951.8m)

Such figures only serve to encourage online marketeers many of whom are facing their first real brush with economic slowdown, and it testament to the accountability of the channel as a sales tool. So where has this money been spent.

  • Display – 19.8%
  • Classifieds – 21.5%
  • Paid for Search – 58.3%

If these figures are taken with SEO in mind (estimated to be worth around 330 million according to E-Consultancy), an overview of the market would probably look as follows:

Uk online market including SEO

Uk online market including SEO


The above SEO figure has been worked out as a percentage figure based on the 88/12 split from the earlier E-Consultancy report. With the current IAB figures therefore a rough estimate of SEO allocation would be circa 7% of the total spend

Display 333135000 18.34%
Classified 361737500 19.92%
Paid Search 980897500 54.01%
SEO 133758750 7.36%

The growth in spend, still continues to be fueled with the traditional investors, that is the likes of the recruitment, automotive and property sectors, with finance accounting for circa 6.2% of totlal spend

So can this continue, only time will tell. Some forecasters are still seeing significant growth in the industry, others like the lads over at Marketing Pilgrim are seeing times ahead that are less bountiful than now, however there is no doubting the effectiveness of online, and the fact it is in the marketing mix for the longhaul.

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Frank Reed October 9, 2008 at 4:08 pm

Hey Guys,

As the author of the Marketing Pilgrim post you refer to I just wanted to make sure that you got the “tongue in cheek” nature of the commentary. Who wouldn’t be thrilled with 15.6% growth? I just get a kick out of the naysayers that see this as a slowdown rather than very healthy numbers in an industry that is rapidly maturing due to the effectiveness of the medium.

Peter Young October 9, 2008 at 4:19 pm

I did indeed.

We have to ask – What other channel can display those figures in the current economic climate. If you had to choose any industry at present, it has to be online

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