Web to pass TV in advertising spend by 2009

3rd January 2008

The UK has been tipped to be the first major economy in which online advertising spend overtakes television ads.

Media buying agency Group M has predicted that UK internet advertising will pass this milestone by 2009, although it may happen in Sweden during this year.

Adam Smith, futures director at the agency, commented that this did not signal the end of television as an advertising medium.

He explained that the internet is made up of three different businesses - search, display and classified.

"Most of the growth is coming from search advertising and that is being fuelled by either new money or from the direct marketing sector, not so much from TV ad budgets," he added.

Group M forecast that by the end of this year, online advertising will have reached 24.8 per cent of total media spend, compared to 26 per cent held by television.

By 2009, this will mean internet ad spend will need to grow by six per cent to overtake television.

Steve King, chief executive of ZenithOptimedia recently predicted that internet advertising will replace magazines as the world's third-largest medium of advertising by 2010.