Online ad spend to surpass £100 per user in 2012

The amount of money spent on internet advertising per UK adult user is set to rise above £100 this year, according to the latest forecast from GroupM.

Online ad spend to surpass £100 per user in 2012
Online ad spend to surpass £100 per user in 2012

The WPP media powerhouse is predicting that £104 per user will be spent on internet advertising this year, up from £98 last year and £70 five years ago.

A total of £4.85bn is expected to be spent on targeting 46.8 million adult users this year, up from a forecast £4.44bn and 45.5 million users last year.

The UK's average spend per user (161 in US dollar terms) is the fourth-highest in the world, behind the US ($174) and Australia ($181), but Norway is by some distance the country with the highest figure ($213).

The figures are published in GroupM's 'This Year Next Year: Interaction' report, covering internet-related spend around the world.

GroupM predicts paid search will, as usual, dominate the category in the UK this year, rising 8.1% from 2011 to £2.79bn, and display will grow at double that pace, to £1.2bn.

The introduction by Rob Norman, CEO of GroupM Interaction Worldwide, adds Amazon to the "big three" of Google, Apple and Facebook.

Norman said: "In previous reports, we have made little reference to Amazon as a media company. It is increasingly clear that this is an omission.

"AOL’s exit from the ISP market and its large wager on content is taking time to pay off and Yahoo seems to be living with the uncomfortable paradox of a growing audience and eroding revenues particularly at the hands of Facebook, ad networks and exchange-traded media.

"New leadership at both these companies has a hard road ahead. Their massive display advertising sales alliance in the USA may yet be exported."

Follow Daniel Farey-Jones on Twitter @danfareyjones


Have your say...

Before commenting please read our rules for commenting on articles.

If you see a comment you find offensive, you can flag it as inappropriate. In the top right-hand corner of an individual comment, you will see 'flag as inappropriate'. Clicking this prompts us to review the comment. For further information see our rules for commenting on articles.

comments powered by Disqus

Latest

NUJ slams Richard Desmond's 'sick-making' £1.3m donation to Ukip

NUJ slams Richard Desmond's 'sick-making' £1.3m donation to Ukip

The decision by the Daily Express owner, Richard Desmond, to donate £1.3 million to Nigel Farage's UK Independence Party has been slammed as "sick-making" by the National Union of Journalists (NUJ).

Share
ZenithOptimedia's chief Grant Millar to chair Media360

ZenithOptimedia's chief Grant Millar to chair Media360

Grant Millar, the chief executive of ZenithOptimeda, will chair this year's Media360 on 4 and 5 June, the annual gathering for clients and media practitioners.

Share
Fold7 splits with Gocompare.com amid talk of Gio Compario's return

Fold7 splits with Gocompare.com amid talk of Gio Compario's return

Fold7 is splitting with Gocompare.com as the insurance-comparison site mulls bringing back its opera-singing mascot, Gio Compario.

Share

Get news by email