Score one for new media. The Internet will receive the largest share of advertising dollars in Britain this year, beating television for the first time. The prediction, by Enders Analysis in the UK, cites paid search and online video as the primary drivers of ad spending.
Digital will receive a 19 percent share of ad spending at £3.56 billion compared to a predicted £3.39 billion for television. This equates to a more than 26 percent rise in online spending year-over-year.
Unsurprisingly, Google will grab most of the money spent on search advertising -- upwards of 80 percent in Britain, which Reuters called the "most developed online advertising market" worldwide.
Britain is different from the United States in that some of the most popular broadcast channels -- the various channels of the British Broadcasting Corporation or the BBC -- are publicly funded via taxes. As a result, the BBC channels don't have traditional advertising and this lowers the total ad spend on television in the country, making it potentially easier for digital spending to surpass TV.
In addition, the BBC recently launched its online video solution iPlayer to great fanfare. IPlayer allows British Internet users to view a wide variety of BBC shows on-demand directly from their computer. This widespread and well-publicized online video initiative could help drive acceptance and overall consumption of online video in the country -- and help drive advertising dollars online.
The Reuters report quoted an analyst as saying "there are early signs of a direct shift in spend from TV to the Internet over and above the broader shift to online."
More news, commentary, and predictions from The Industry Standard:
- Prediction: Google invests $1 billion in Facebook
- Prediction: Twitter starts serving ads stateside
- Analysis: Facebook vs. MySpace: The battle for global social network dominance
- Analysis: 10 cool Facebook applications that you've probably never heard of -- but should
- Analysis: Why podcasting is failing
- Analysis: Chavez, China, and the coming startup squeeze
- Analysis: Social networks: The users revolt II
- Special Feature: Where are they now? The Industry Standard tracks down 10 dot-coms from the Web bubble of the late 1990s
- Special Feature: 10 'Net services that will succeed (and 10 that will probably fail)



Post new comment