Net ads come of age
UK advertisers upped digital advertising spend by 14% to £7.2 billion in 2014 from £6.26 billion in 2013, according to IAB UK/PwC data. The biggest sector in display ads last year was consumer goods, with a 19% share, ahead of travel and transport (14%) and finance (13%). Display now accounts for close to one-third of digital ad spend, its largest-ever share.
“Display advertising's record share shows marketers are increasingly seeing online as a viable brand awareness ad medium – as with traditional media – not just one for generating an immediate direct response,” says Tim Elkington, chief strategy officer at the IAB UK. “The Internet has been characterised as the latter since the start due to its unrivalled measurability but this shows online advertising has come of age.”
Nearly four in 10 UK households bought a tablet in the last year, and mobile now accounts for 23% of digital ad spend and 56% of social media spend. The average home now has 7.4 devices connecting to the Internet.
“With display advertising now accounting for 32% of digital ad spend, media agencies and publishers must invest in technologies in order to stay ahead of the curve,” says Owen Sagness, general manager of Microsoft Advertising & Online UK. “This will enable them to deliver relevant experiences that are in tune with consumers’ changing online behaviours.
“The growth figures for mobile and tablet spend reiterate that consumers are now accessing information through multiple devices. Microsoft’s recent Digital Trends research found that consumers expect online and real life experiences to be seamless. As an industry we must listen to consumer demands and anticipate their changing behaviours in order to produce creative experiences that push the boundaries of what is possible in digital advertising today.”