New reports show that the internet is now accountable for around a quarter of all UK advertising. The figures reveal that the value of online marketing and advertising hit over £4bn, marking a rise of 12.8%.
Social media sites such as Facebook are believed to be partly responsible for the rise in value. The annual report from the Internet Advertising Bureau (IAB) shows that a 27.5% surge in online display advertising is down to £945m being put into adverts on social media sites. This is a stunning net growth of 200%.
Online advertising has provided a much needed boost to marketing companies after the recession. Chief executive of the IAB Guy Phillipson commented: “Major brands restored their advertising budgets in 2010 and online was a big winner.”
The study also shows that online video advertising nearly doubled throughout 2010. A total of £54m was spend on adverts that appeared before, during or after an online clip on sites such as YouTube.
The main attraction for advertising companies is that they can market products directly to the consumer based on information gathered. Platforms such as Facebook or Google collect user information based on searches and then tailor the adverts to the consumer.
However, recently the EU suggested that stricter rules should govern the level of access to online personal data. This would affect sites such as Facebook in terms of ad revenue – it is thought a majority of users would opt out of advertising schemes.
“A US-based social network company that has millions of active users in Europe needs to comply with EU rules. I want to explicitly clarify that people shall have the right – and not only the possibility – to withdraw their consent to data processing,” commented Vivian Reding, Justice Commissioner at the EU.