Online advertising in the UK growing faster than the US
Sometimes I think that the U.S. is moving pretty fast in the world of online advertising… although some companies are woefully inadequate and inefficient as well. (You’d be surprised how much online media is paid off by linking to a companies’ main page, instead of a much more effective customized landing page, but I digress. 8-)
This New York Times data shows that the UK marketers are more comfortable with online as a larger percentage of total marketing spend. Media planners in the US still rely on TV, partially out of habit, but some are also concerned about contextual placement. Surprisingly, they haven’t fully understood the measurement capabilities, targeting capabilities and ROI that online can bring.
From a New York Times article on the subject:
“Online advertising is racing ahead in Britain, growing at a roughly 40 percent annual rate, and is expected to account for as much as 14 percent of overall ad spending this year, according to media buying agencies. That is the highest level in the world, and more than double the percentage in the United States.”
Seems like even search has higher spends in the UK, 56% of online budgets vs. 42.5% here in the US. Also surprising is the retail website conversion rate average is 2.5% in the US vs. 3.9% in Britain. I’m guessing this has to do with higher broadband saturation, (47% of homes!) and more consumer comfort on the web.
I’m excited by the prospect that US firms are still learning how effective online can be, and I’m very glad to be working in this industry at this time!
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