The IAB Reveals just how much time and Money is spent Online

Produced in conjunction with PricewaterhouseCoopers, the Internet Advertising Bureau’s latest digital adspend report has happily announced that the first half of 2013 has seen the UK’s advertising market hit a spending high of £3.04 billion – outperforming the first half of 2012 by £435million.

This expenditure figure runs alongside the revelation that Britons now spend 1 out of 12 minutes on the web – or 43 hours per month – with 22% of this time dedicated to entertainment, 12% allocated to social media and blogging, and about 4% is spent shopping online.UK Minute by Minute internet Use


Over 46 million members of the public are active online, meaning that advertisers have spent £66 trying to engage with each person during Q1 and Q2. With marketers distributing more of their budget than ever across digital media, individual formats are enjoying steady growth in the advertising world, with mobile remaining an insatiable platform as its adspend share has risen twofold since January to hit £429.2 million.

As 68% of the UK were smartphone users by June 2013 and with the introduction of 4G networks, mobile video advertising received a colossal surge of 1260%, rising from £1.7 million in the first half of 2012 to £23 million in the equivalent period of 2013. Alongside this, social media advertising grew by over double, peaking at £242.5 million. Tim Elkington, Director of Research & Strategy at the IAB, said: “With smartphone penetration crossing the two-thirds landmark and the successful roll-out of 4G, 2013 could be the year when advertising spend on mobile crosses the £1 billion threshold.

Mobile display advertising escalated by 195% like-for-like, giving it a 20.4% share in digital display advertising. Entertainment & media was also overtaken by consumer goods as the biggest mobile display advertiser, increasing from 14.5% at the start of the year to 26.8% 6 months later. Consumer goods actually stood as the lead spender in all forms of digital display advertising, finishing at an 18.2% share versus last year’s front-runner of finance which slipped from 15.8% to 13.7%.

Senior manager at PwC, Anna Bartz, said:

The fact that consumer goods – such as food, clothing and jewellery – account for over one quarter of mobile display advertising shows how important brands regard smartphones as key to consumer buying behaviour. Mobile has moved on from being a communications or entertainment device to a bona fide retail one. It’s an interesting contrast to how dominant entertainment has become on ‘fixed’ devices such as computers and laptops.

The final share for digital advertising formats was pioneered by PPC, which took an impressive 59% share, while classified ads accounted for 15% and 24% came from display ads.

Microsoft Advertising & Online sales director, Simon Davies, said:

“As brands test the waters of new advertising formats across these emerging growth areas, the industry needs to listen carefully to consumer demands and learn from each other’s successes and failures. It’s up to us now to understand the continuing evolution of consumer digital behaviour in order to fully utilise the opportunities available.”