Google Taking it to UK TV
According to London-based trade Financial Times, media buying groups Mindshare and Initiative expect Google’s UK revenue to surpass £800 million this year, more than UK’s Channel 4 television station. Within in the next 18 months, the companies expect Google to overtake ITV1, the UK’s number one commercial station. Media buying company Carat concurs, but says that Google has the potential to overtake ITV1 by this year.
Andy Duncan, CEO of Channel 4 said that Google’s UK revenue could easily reach £900 million. In an interview with Reuters, Duncan said that Google’s rapid increase “reinforces that significant structural change has been going on and will continue to go on. Some broadcasters have been very slow to realize this. The industry as a whole is frankly rather backward looking and is perhaps underestimating the scale of change that is going on and the pace of change.”
According to the IAB UK, British online ad spending increased by 40% during the first half of 2006 alone. The Bureau also claims that online advertising in the UK will generate more than £2 billion by the end of the year, more than half of the entire TV industry.
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