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Home » industry research, News, social media advertising, social media marketing

Video, social drive UK digital ad market to record gains

Submitted by on April 3, 2012 – 10:22 amNo Comment

The IAB UK’s latest tally is just out this morning and again the figures make for bullish reading material. Once again, the digital ad growth in the UK is experiencing crisis-defying growth, and the fastest growing part of that is social media marketing. Let’s dig into the numbers.

Here are the top-line figures from the latest IAB audit:

  • online advertising increased by 14.4% year-on-year in 2011 to a new high of £4.784 billion, up £687 million.
  • for first time ever, display tops £1bn (with video display passing £100m)
  • Online video spend doubled year-on-year to £109 million; video has grown more than eight-fold since 2008 (£12 million)
  • In 2011, banner ads on social media platforms such as Facebook, YouTube and LinkedIn, increased by 75% to £240 million; this too represents an eight-fold increase since 2008.
  • social networks account for 27% of all the time spent online in the UK in 2011.
  • 40% of marketer polled by the IAB plan to use online video to increase brand awareness in next 12 months.

What’s interesting to us is what’s emerging as the twin drivers of digital ad spend in the UK: mobile and social. A few weeks ago we reported on the IAB figures saying advertising on mobile devices rose by 157% in 2011, to £203 million. Combined, social and mobile are the fastest growing segments and they now account, by our calculation, for about 10% of the overall digital ad pie. Not bad, seeing as this is only the third year the IAB has been compiling numbers for these sectors. Anna Bartz, strategy manager at PwC, provides a bit further perspective, saying:

This year’s results reflect the continued appeal of digital media – on desktop, mobile or tablet – to advertisers for both brand advertising and direct response. All formats grew, with strongest increases in video and social media, and in search. Internet adspend’s 14.4% growth is exceptional when compared to an estimated advertising growth of less than 2% across all media in 2011.

Another interesting factor is the industry breakdown. The big gainer in the second half of 2011 was retail. It still trails finance and FMCG, but it could close that gap this year if all holds steady. Here’s the breakdown, according to the IAB:

The top five categories, by share of display spend, in 2011 were:
Finance 15%
Consumer (FMCG) 15%
Retail 12%
Entertainment & the Media 12%
Technology 9%

Editor’s Note: The rise of social and mobile will once again be the big theme of Social Media Influence 2012. Come here the sector’s smartest thinkers, practitioners and innovators discuss what worked in 2011 and what the future holds.

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