Friday, December 08, 2006

UK Two Years ahead of US for online advertsing

In an interesting review and projection for next year Alan Patrick notes that the UK is almost two years ahead of the US in terms of online advertising. At least, that's the conclusion of Terry S. Semel, chief executive of Yahoo!, in a recent New York Times interview. The situation has arisen mainly through the underlying growth of broadband in the UK.

During 2006 broadband penetration increased from about 40 per cent to 50 per cent. In addition, the time people spend online has risen to 23 hours a week and online spending has risen from about £800 per head to £1,100 per head.

As companies have followed customers online, internet advertising has grown rapidly. By the end of June 2006 it was up from 8 per cent to 10 per cent of all UK ad spend and is expected to be nearer 14 per cent by December 2006 - the highest ad spend per head in the world.