The WPP is projecting that the UK advertising industry will spend more online than on TV by the year 2009. Group M, a division of WPP group said that it expected UK online advertising to grow over 30% to 3.4 billion pounds which is about $6.72 billion, reports The Independent.
Television advertising however, is only anticipated to grow by less than 1% this year. By 2009, the report continues, the UK will likely be the first major economy after Sweden to see online ad spend surpass TV advertising.
Adam Smith, futures director of Group M was quoted in The Independent to say “When we talk about internet advertising, we are talking about a mix which includes search, display and classified advertising. Out of that, search accounts for around 60%, and that money is not coming from TV ad budgets. The internet will sit beside TV as an increasingly important avenue for advertisers.”
Smith also concluded in the article that online video would see rapid growth, stating to The Independent “FMCG [fast-moving consumer goods] is a small minority of online display investment. This is, however, set for rapid growth… Faster, cheaper memory makes the production, distribution and storage of video easier. Video is the mother tongue of FMCG marketing. It is also 30% of all web traffic already. Advertisers are aware of the need to find the under-35s TV is giving up, and that a website [alone] may not be enough [to attract them].”