LONDON - The Internet will surpass television to become the biggest advertising medium in Britain by the end of 2009, according to a report published Monday.
The report by the Internet Advertising Bureau, PricewaterhouseCoopers and the World Advertising Research Centre said Britain has the most developed online advertising market in the world, worth 2.8 billion pounds ($5.6 billion) in 2007.
The report said last year's 38 percent growth in online advertising is due to an increasing number of Internet users, the introduction of cheap laptops and the growing popularity of catch-up TV on the Internet through services such as Channel 4's 4oD.
"With broadband speeds on the up and consumers spending more time on more sites, the outlook for online advertising is rosy," said Guy Phillipson, chief executive of the Internet Advertising Bureau. "In fact we expect it to overtake TV in 2009, when it will become the U.K.'s biggest medium."
The report said the Internet was the biggest driver of overall advertising growth in 2007, with the entire sector in Britain experiencing 4.3 percent growth to 18.4 billion pounds ($36.2 billion).
Online advertising spending had a market share of 15.3 percent in 2007 - up from 11.4 percent in 2006 - behind display press advertising (19.9 percent) and TV (21.8 percent).
Banners, video and other display online advertising grew 31 percent in 2007, the report said, while paid search marketing was "maturing, but not slowing" as marketers and brands learned to secure greater returns on investment through "key phrases" and accurate targeting.
Advertising spending on search grew 39 percent, in line with overall growth, to 1.6 billion pounds ($3.1 billion), while its market share remained largely the same at almost 58 percent. Spending on classified advertising showed 54 percent year-on-year growth.
The recruitment sector led the market with a 25.7 percent market share, ahead of the automotive sector and technology, which overtook finance for the first time.
