UK online advertising continues to take marketing funds from traditional media

The European Interactive Advertising Association (EIAA) reports that spending on internet marketing will rise by 16 per cent in the next year, while traditional media expenditure will fall.

40% of the advertisers surveyed said they believed the internet to be vital to their marketing and 77% said that their brand recognition had improved due to online advertising exposure.

The bulk of online spending was on display ads, while search has had an increase of 35% in the last two years.

EIAA reports that 81% of advertisers have increased their online ad spend over this year, and 82% of those say that they are moving spend from traditional media. 40% of the increased spend was moved from print and 39% from TV.

Jefferies & Company have forecast that spending on search will rise by 26% by the end of 2008.

So the movement of advertising investment from old media to online continues at an increasing rate.

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