Web advertising now accounts for around 2 per cent of the UK's annual advertising spend of £3,376 million, says the organisation, putting the industry nine months ahead of its own targets.
The 2003 half-year advertising spend report, produced by the IAB and professional services firm PricewaterhouseCoopers, attributes the growth of web advertising to factors such as the spread of broadband and the success of the industry's efforts to simplify and standardise advertising formats.
"Online advertising continues to grow fast, aided by the market acceleration programmes developed by the IAB," said Danny Meadows-Klue, chairman of the UK IAB.
"But within this growth there is rapid evolution of advertising products, as well as waves of new types of advertisers coming online."
Banner adverts, which usually appear as embedded panels at the top or side of web pages, are still the most popular form of web advertising, though paid-for search listings have grown significantly ahead of classified advertising, sponsorship and email display advertising.
"Web advertising accounts for about 90 per cent of the revenues for the free-to-air internet media companies around today," he told dotJournalism.
"That means it underpins the economics of most web sites."
The financial sector is still the biggest spender on online advertising, accounting for 30 per cent of revenue, but spending by the automotive industry increased three-fold to 17 per cent. Motoring manufacturers have been particularly successful in using multimedia tools to apply TV-style adverts online, says the report.
The IAB has predicted a record fourth quarter in 2003 and a total spend of more than £300 million for the year as a whole.
Related stories:
http://www.journalism.co.uk/news/story792.shtml
http://www.journalism.co.uk/news/story648.shtml
http://www.journalism.co.uk/news/story628.shtml
See also:
http://www.iabuk.net
http://www.iabuk.net/index.php?class=news&view=847
http://www.iabuk.net/index.php?class=news&view=850
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