Internet advertising 'challenging traditional mediums'

6th February 2008

Online advertising is giving traditional marketing mediums such as television and print a run for their money, reports the Investors Chronicle.

The publication states that Phil Stokes, UK leader of entertainment and media at PricewaterhouseCoopers, has said that as more Brits purchase home broadband, online video advertising will grow in popularity, therefore challenging traditional television ads.

Thomas Singlehurst, analyst at Citi, told the news source that a wise business strategy for advertising agencies would be to spread their focus on various below-the-line marketing techniques such as direct mail, pay-per-click and PR rather than above-the-line methods such as print and television.

"Better growth and in some cases, even better margins are available in digital, search engine optimisation, PR and market research," he remarked.

The publication cites figures which reveal that search advertising is forecast to make up 30 per cent of total UK advertising spend by 2013, equating to £5 billion.

According to the Internet Advertising Bureau, internet advertising spend increased by 25 per cent during the third quarter of 2007, with returns of $5.2 billion (£2.5 billion).