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
Media Week Jobs
Search for more media jobs

Latest

BBC Trust accepts cost for over-75s TV licences but 'cannot endorse the process'

BBC Trust accepts cost for over-75s TV licences but 'cannot endorse the process'

BBC Trust chairman, Rona Fairhead, has said she "accepts" the surprise announcement by culture secretary, John Whittingdale, today that the government will stop subsidising the over-75s TV licence fee, but has questioned the process that led to the major overhaul.

Share
Discovery's partnership with the IOC spells gold for brands

Discovery's partnership with the IOC spells gold for brands

A commercial broadcaster has the potential to improve on the BBC's coverage of the Olympics, says MediaCom's head of sport for Europe, Middle East and Africa.

Share
NME to become a free magazine after 63 years

NME to become a free magazine after 63 years

Time Inc's 63 year old music brand, NME, is to become a free weekly magazine from September and its digital output will be broadened to also include film, fashion, television, politics, gaming and technology.

Share

Get news by email