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Digital Advertising Spend reaches £2.59 Billion


A report conducted by PricewaterhouseCoopers (PWC) for the Internet Advertising Bureau (IAB) shows that advertising expenditure rose 12.6% in the first half of 2012, with a massive 132% rise in mobile spending.

The report shows that more people went online in 2012 than 2011, with an average of 39.5 million monthly internet users in 2011 being topped by 43.1 million in June 2012.  Tim Elkington, Director of Research and Strategy at IAB explained that the reason for such growth was in part due to the fact that “Almost 60% of people in the UK have a smart phone, [and] average UK household broadband speed is now 9MB.”

It appears that it is increasingly easy for people to get online, which is leading to a surge in online ad spend. The report will be a welcome sight to the likes of Facebook as it tries to shift its business model in an attempt to increase advertising revenues.

The IAB report clearly indicates that consumers are increasingly satisfied that the online purchasing experience is safe and convenient. Building trust with consumers as they venture online will be key in developing the mobile marketplace as well as the willingness of consumers to share data in the same ways they do in the ‘offline’ world. Demonstrating good data protection, privacy policies and procedures is a very quick win to that end. 




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