Chichester Design: Facebook drives online advertising growth
Very interesting news from the Internet Advertising Bureau (IAB) annual report: the UK online advertising market grew by more than a quarter in 2010 to reach almost £1 billion. What was the key growth driver? Social media.
A move by advertisers into the social media world was a principal factor in the marked upturn in online advertising, itself irrefutable evidence of the digitalisation of the general marketplace. Where are we forming our opinions? Where are we making our purchasing decisions? Where are we doing that purchasing? Online.
So, it follows that more and more companies should be investing in online advertising, whether by using Google Adwords, placing adverts on social networking sites, creating digital publications or embracing social media marketing.
Unsurprisingly, the growing popularity of Facebook has been central to the growth in online advertising. The social networking site made £100 million in advertising revenue last year in the UK, a figure that contributed to an incredible 200% rise in social media online display advertising expenditure in 2010. And, I think 2011 will see similar growth – B2B and B2C companies are focusing hard on social media marketing.
Another key contributor to the stellar increase in online advertising expenditure is video advertising, spending on which almost doubled to over £50 million. I mentioned here at the beginning of the year that web videos were going to be an essential business tool in 2011 and I think these figures underline just how this particular market is moving. Web videos, whether the content is product or service focused, or an introductory to-camera piece, is clearly a format that is going to have a major impact on the market going forward.
Online – that’s where the market is going? No, that’s where the market is.
To find out more about Chichester Design’s web design and development services, including online advertising, contact Amy on +44 (0) 1243 787542 or [email protected].