IAB Figures: Digital adspend grows 14.4% to £4.8bn

FMCG: increases digital spend
FMCG: increases digital spend

The growth of digital marketing spend in the UK has accelerated to its highest level in five years, with FMCG and retail brands cementing their position among the top spenders.

Figures from the Internet Advertising Bureau (IAB) and PricewaterhouseCoopers reveal brands spent £4.8bn in 2011, up by £687m. The 14.4% leap marks the highest growth rate in five years.

FMCG became the second-biggest-spending sector on display ads, at just 0.2% less than financial services, which has a 15% share of the total.

Retail brands are now the third-biggest-spenders on display with a 12% share, having accounted for 10% of total display in the second half of 2010.





Display breakdown



Search remained brands' staple channel for digital advertising, accounting for 58% of total expenditure, up 17.5% on a like-for-like basis.

Online breakdown

Display rose 13.4% to break the £1bn barrier for the first time, with brands investing more in social-media and video display marketing.

Social media display itself was up 75% year on year, accounting for 21% of total display spend. Online video spend doubled to reach £109m in 2011.

Tim Elkington, director of research and strategy at the IAB, said the growth has been driven "by big brand advertisers realising that digital is not just about click-though, and they can build brands online in the same way as TV and press".

He said that another factor, driving the increase in ad spend, comes from the industry making digital advertising "more attractive" to big brand advertisers, from both media owners creating more innovative and engaging ad formats, and agencies helping clients better "explore the complex digital world".

Elkington said it was "unclear" where the additional spend to digital was coming from, but there would be a clearer picture when the WARC figures are released in the coming weeks.

The year figures, comes two weeks after the IAB announced that mobile ad spend had soared 157% year on year to a total of £203.2m in 2011.

Online share

Online ad spend

Digital media mix

Discussion

Before commenting please read our rules for commenting on articles.

If you see a comment you find offensive, you can flag it as inappropriate. In the top right-hand corner of an individual comment, you will see 'flag as inappropriate'. Clicking this prompts us to review the comment. For further information see our rules for commenting on articles.

comments powered by Disqus
Brand Republic Jobs

subscribe now

Latest

John Lewis walks consumers through its history to celebrate 150 years of business
Waitrose boosts content strategy with 'Weekend Kitchen with Waitrose' C4 tie-up
Hottest virals: Cute puppies star in Pedigree ad, plus Idris Elba and Fruyo
Amnesty International burns candles to illuminate new hope
Toyota achieves the impossible by calming angry Roman drivers
Tom of Finland's 'homoerotic' drawings made into stamps
YouTube reveals user habits to appeal to 'older' marketers
Ex-M&S marketing chief Steven Sharp consulting at WPP
Wolff Olins reveals new CEO after Apple poaches Karl Heiselman
Glasgow offers £30,000 prize to best digital idea for 2014 Commonwealth Games
Google's revenues surge but shares drop as it grapples with transition to mobile
Facebook beats Twitter to most 'marketing friendly' social media site crown, says DMA
Fableists believe children like Finn should be outdoors enjoying life
Homebase, Baileys and Camelot join the line-up at Media360
MasterCard renews Rugby World Cup sponsorship to push cashless message
Lynx unleashes £9m 'Peace invasion' campaign
Social Brands 100 Youth: Pizza Hut most social youth brand in UK
Cheryl Cole is wild and arresting in new L'Oreal work
Morrisons told not to show alcohol ads during YouTube nursery rhymes
O2 head of brand Shadi Halliwell departs after 23 years at company in restructure
Tesco hit by further sales decline as it turns to digital Clubcard and social network
Branding guru Wally Olins dies aged 83
Duracell short film captures epic Transatlantic voyage
Ash runs Tinder experiment to show smokers are less desirable to opposite sex
British Airways teams up with Gerry Cottle Jnr for summer of rooftop film screenings
Arklu says 'girls can be superheroes too' with doll design competition
Coke enters squash market with Oasis Mighty Drops
Virgin Galactic signs up Land Rover as space flight sponsor
Motorola marketer Andrew Morley departs as Google gears up for sale to Lenovo
US Airways apologises after tweeting obscene image at a customer