The Story

The UK has claimed the record for being the first industrialized nation to have its internet advertising spending eclipse all other forms. This past year, advertisers spent £1.75 billion ($2.8 billion) online, which made for 23.5% of the total market. Television, the next biggest sector for advertising, only 21.9% of total spending.

There are a lot of numbers about what’s changed in the past year, though the most notable come from ads in search and online videos. 60% of the entire budget was spent on search, meaning a whopping total of £1.05 billion ($1.68 billion). That’s up 6.8% from last year. Online video grew 300% to about £12 million.

One UK analyst suspects that the online ad market may have peaked this past year. Adam Smith at Group M said that the continued growth of social networking sites, which have yet to gain massive support from advertisers, could well cause the online advertising market to shrink in the next year. Aside from that, Mr. Smith said that television could well rebound.

It Keeps Going

Mr. Smith is dead wrong: we have not yet reached the apex of the online ad market in the UK …

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