UK brands invested £4.1 billion on online advertising in 2010, with internet now accounting for £1 in every £4 spent on marketing budgets.
The new figures were released by the Internet Advertising Bureau (IAB) and PricewaterhouseCoopers who revealed that internet marketing spending rose by 12.8 per cent year on year in 2010.
The research showed that the growth is being driven by greater demand for social media marketing and greater investments in video formats. Social media marketing spending rose by 200 per cent and video formats by 91 per cent.
The largest share of the total spend is still paid search which represented 57 per cent of total online spend in 2010. Mobile advertising also saw a significant increase of 116 per cent.
Guy Phillipson, chief executive of the IAB, said: “We have seen display has come back with vengeance and social media has certainly had its biggest year in 2010. In the early days advertisers where a bit wary about spending in social media and now they see it as an opportunity to engage and get their advertising shared. Although it has small ad formats if it is done cleverly is an important part of an integrated campaign.
“We have found these young formats, such as mobile, are sometimes growing at three figure rates, and we look forward to the future as growth continues.”
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