Will UK Advertising Usurp? Industry Experts Dispute and Concede to Online Ad Power Across the Pond
There are several dynamics to getting to the root of the U.K. or the U.S. leading in online advertising, at least for analyses sake. Deep Focus’s Schafer, who heads an interactive advertising agency with experience in modifying campaigns for the U.K., makes many diplomatic points. Geography, cultural differences, “connectivity” and creative talent are a few of the things that he attributes to any type of perception that would lead to the U.S. leading the U.K. within online advertising. “Audiences or consumers in the U.K. are more connected in general and it has to do with the population in major cities” says Schafer.
The culture of being European is a global view as compared to an American outlook. “America is notoriously self-absorbed and I mean that in only the best way,” Schafer continues. “This is why people look to countries like the U.K. when it comes to social networking and interacting. There are reasons for it all…I think in America, there’s a yearning for how things used to be and there’s still that emotional passion to simpler times. Other countries are more vested…in moving things forward.” U.K.-based Dave Smith doubts the notion of the U.K. surpassing the U.S. in advertising dollars, but sees the U.K. media industry as being “unique.”
For example, the article states that search accounts for 56 percent of Internet ad spending in Britain, compared with 42.5 percent in the United States based on Internet Advertising Bureau stats. Not only that, eMarketers claims there is 47.4% broadband adoption in Britain versus nearly 43% in the US, a significant turnaround from 5 years ago.
The IAB, speaking of, is another factor to consider. “We have a very strong interactive advertising bureau here in the U.K., states Smith. “The IAB has had an influential role in Britain’s online advertising existence and have been a major part of brands trusting advertising online and the fact that it does work”. And it’s not just trust. Smith claims, “The IAB has done a good job of educating brands about the effectiveness of online advertising, and so [agencies] have all been quick to take up online advertising.”
Another major area that may be overlooked in comparing the two leading countries is geography. The United States operates on a regional and local market-based advertising system whereas the UK’s advertising skews more national. The differences in regulations are also important to note. Schafer mentions that “because of certain regulations like those of the BBC, companies can do more progressive things. They’re a government operated agency and can almost do what they want. I mean they have a virtual monopoly on what they do…they can create banner ads that stream in news from its own sources. That can run within the site and they were the first to do that.”
But together, all of the differences combined draw conclusions to different operating systems in one global industry that is online advertising. As Schafer states “some of the worst banner ads I have seen have come out of the U.K. and some of the best banner ads have come out of the U.K.” And just as there are positive marketing ideas that have come out of both countries it’s the creativity that truly reigns. The differences may not necessarily translate into numbers and for the size of the United States and the history of its advertising efforts; it is unlikely that the United Kingdom will be the world’s largest online advertising spender, especially not in 2007.
Perhaps instead of being critical of the United States and its online spending, a perspective that involves sharing the inspiration that is exchanged with an online advertising culture can take place. An online audience is in turn an international audience and as Schafer states, “If your core audience is not an international audience, then you’re going to have to look at everything with a grain of salt.”
Abiding by that, Schafer notes, “There are lots of inspiration that we can draw from”, but reiterated that “the U.K. can draw a line of inspiration from the U.S. but I don’t think there are any clear cut signs pointing to the fact that the UK is leading in online advertising. I think that’s a very huge generalization, almost too big.” And from three professionals, one commonality is certainly achieved, and that is that the U.K. isn’t quite ready yet to be the #1 online global spender, despite what is signified and portended in our Times.
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