PPC spending reaches £1.6bn in UK

14th August 2008

Spending on pay-per-click (PPC) ads rose to £1.6 billion in the UK last year, a new report has revealed.

According to Ofcom, expenditure on such campaigns increased by 39 per cent in 2007, making PPC the most popular form of online marketing for British companies.

Overall expenditure on internet advertising also rose by almost 40 per cent to £2.8 billion last year, the report showed. Classified and display ads attracted some £600 million of investment each.

The study also indicated that internet use is rising significantly among UK web users, while these consumers are paying less for their broadband services.

"We are spending more and more time with our communications devices ... Our devotion to watching, listening and staying in touch wherever and whenever we want shows no sign of diminishing," said Peter Phillips of Ofcom.

Research organisation eMarketer predicted earlier this year that UK spending on online advertising will rise to £3.4 billion over the course of 2008.