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UK online advertising expansion expected post-recession

25 June 2010 - 09:25 by Simon Crisp

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The recession hit the advertising industry hard last year, but now a new study is claiming that online advertising will see growing investment in 2010 as growth returns to the UK economy.

The Spending and Trends report for UK online advertising recorded a 5.7 per cent increase in online advertising spending last year, up to £3.54 billion. It predicts that this will rise further throughout 2010, providing a total annual growth of seven per cent by the end of the year.

The report links the growth in spending to a number of key events, with a particular focus on the 2012 Olympics which it states will cause a significant boost for online ad revenues.

Online marketing expert Karin von Abrams, who compiled the report, praised the performance of the UK's online marketing industry during the difficult period of the recession, pointing out that it was impressive to see spending in online ads rise even though traditional forms of advertising did not fare so well.

Abrams pointed out that online retailers and advertising firms would be perfectly positioned to benefit now that economic recovery is underway, with most consumers spending more online now that the threat of economic collapse is no longer hanging over the UK.

Abrams said that shopping online has a solid reputation amongst UK consumers, with many markets moving over to digital retail and even digital distribution to connect with their online audience. This confidence in the market is persistent in spite of the fact that threats to safe shopping online remain.

Various predictions about overall advertising spend have been made, with the general consensus being that it will rise by between two and three per cent in 2010 across various mediums. However, it seems as though safe shopping online will continue to be one of the key areas at which advertisers and retailers will direct their efforts.