NEW YORK, NY (March 27, 2008)–Advertisers will spend £3.4 billion in 2008, a rise of 27% from the year before, according to new online ad spending figures released by eMarketer. Internet advertising spending will continue to show double-digit growth through 2010, passing £4.3 billion in 2010 and exceeding £5 billion in 2012.

Internet advertising should hold its own in the UK, and may even consolidate gains over other media during the economic decline, according to a new eMarketer report, “UK Online Advertising: Reaching Maturity.” Because online channels are more accountable and cheaper than television, print and other traditional media, they can help advertisers to boost brand and market share even when money is tight.

There are a few reasons why Internet advertising will remain robust in the UK. For one, researchers expect the Internet to pass television in market share of UK advertising in 2010. And, spending on search and display ad formats was up sharply in 2007.

Search-related marketing accounted for 50% of all UK online advertising spending in 2006, and 60% in 2007, according to eMarketer calculations. “While the rate of growth in search-related spending is falling slightly as the market evolves, annual growth is still remarkable,” says Karin von Abrams, senior analyst and author of the report. eMarketer estimates that UK spending on search rose 57% between 2006 and 2007 and will top £3 billion in 2012.

These new figures reflect the UK’s dominance online. The UK leads Europe in Internet advertising. Indeed, online spending accounts for a far higher proportion of total advertising spending in the UK than in almost any other country and online advertising has already passed 10% of total advertising spending.

eMarketer benchmarks its UK online ad spending projections against the Interactive Advertising Bureau UK/PricewaterhouseCoopers data.

To speak to Karin von Abrams, senior analyst, about her analysis of the online market, reach out to eMarketer media contacts listed below.

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