Marketing and advertising spend on internet-based channels has increased at the expense of that given over to traditional media, according to an influential new survey.
The latest quarterly Bellwether survey by Markit Economics on behalf of The Institute of Practitioners in Advertising (IPA) has revealed that the budget for marketing spend on the internet increased during the last quarter of 2011 by 13%; and that the budget for internet search rose even further, by 14.9%.
Budgets for advertising using traditional media such as press, TV and radio, however, fell by 1.2%.
Commenting on the findings, chief economist with Markit, Chris Williamson, said there were ‘signs that companies have become increasingly reluctant to invest in traditional media campaigns, instead diverting money towards the internet’.
Ingrid Lunden, writing in paidContent:UK magazine, has characterised the increase in web marketing spend at the end of last year as ‘a reflection of the general trend…for consumers to turn to the internet – online and on their mobile devices – to look for the best deals around the holiday season’.
Meanwhile, to illustrate this trend, advertising income has been identified as a major factor in Google’s £2.5 billion revenue earned last year in the UK alone; making the search engine giant – in the words of Enders Analysis spokesperson Ian Maude – ‘by far the biggest advertising business in the UK’.
Looking ahead, IPA president, Nicola Mendelsohn, has predicted ‘increased buoyancy’ for the UK advertising market as a whole during the summer, with the help of the London 2012 Olympics and the European Football Championships.