July 01 2008

Interactive media set to grow

Interactive media ad spend set to hit 30% by 2009, the highest of any world market

The interactive media’s share of UK advertising expenditure is set to hit 30 percent next year, the highest of any world market, according to a new GroupM study.

The survey, called Interaction: Addressable, Searchable, Social and Mobile, finds that interactive media will remain the principal source of advertising growth in the UK and beyond over next two years.

In 2007 the interactive media segment – which includes the internet, mobile and gaming – accounted for 20 percent of all UK ad spend, and was driven by better handsets and WiFi connections. The segment is then going to grow to 25 percent this year before reaching 30 percent by 2009.

In comparison, interactive media in the US only generated 12 percent of national ad spend in 2007, rising to 16 percent by 2009.

Sweden is currently the second biggest spender on interactive media, taking 17 percent of its ad spend in 2007. However, the Scandinavian country is expected to be leapfrogged by neighbouring Denmark by 2009, when the new media will take 23 percent and 24 percent respectively, according to the report.

Globally, interactive media's share of advertising reached 11 percent last year, and this is expected to hit 15 percent by 2009, led by gains in the US and Western Europe.

Almost 45 percent of all interactive ad spend in 2007 was identified as coming from display followed by paid search at 38 percent. These two figures are expected to move closer together over the next two years as search takes a stronger hold of the global marketplace.

The study also found that the amount of time consumers spent online was increasing, from a mean of 27 minutes daily in 2005 to a projected 46 minutes next year. But that doesn't mean that consumers are spending less time with TV, radio and print but rather carving out more time to spend online each year, or possibly multitasking, which raises the bar for advertising creativity and engagement.

The report is free to GroupM clients and available to non-clients for $200. Copies can be ordered from the “Publications” section of the GroupM website at www.groupm.com .

by Marcus Austin (Web Editor)