Online ad spending in the UK gained 21 percent in the first six months of this year, reaching £1.68 billion ($2.95 billion) as the while the country’s total ad market slipped 0.7 percent year-over-year, Reuters reported. The catastrophic events roiling the globe’s financial markets notwithstanding, IAB’s Guy Phillipson told Reuters that while online hasn’t been immune to the recent shocks, its strength has stood firm in the face of the industry’s wider weakness. He said that marketers were still being attracted by display and video. Therefore, Phillipson remains bullish on the UK digital ad market, even going so far as to predict online ad spending topping £3.2 billion by the end of this year.
In particular, search ads were up 28 percent year-over-year, with a market share of 58.3 percent of the total online expenditures, while display ads climbed 16.3 percent — quite a contrast from the situation in the U.S., where the display format saw its growth rate cut in half, as it grew only 8 percent in H108, compared to 17.7 percent, according to TNS Media Intelligence data released last month.
The report comes two months after Aegis Group’s Carat’s bullish projection for online ads globally. As other forecasters have been revising their predictions downward, the UK media shop upped its forecast very slightly, saying that internet ad revenue will grow 23.7 percent this year and 18.6 percent the next. Carat also said that the web is still poised to overtake radio this year to become the world