The UK online advertising market was worth £3.04bn during the first half of 2013, with much of the growth based on an upsurge in firms buying ad space on mobile devices.
According to the Digital Ad Spend report from the Internet Advertising Bureau UK and PwC, UK firms spent 17.5 percent, or £435m, more on online adverts from January to June this year, compared to £2.6bn during the same period in 2012. This is equivalent to advertisers spending £11 a month to reach each individual, based on 46.1 active UK online users.
The biggest growth area comes in the mobile space, driven by the popularity of smartphones. Mobile adverts increased 127 percent from £188m to £429m year on year, and are now worth 14 percent of all online ad spend, double its value in the first six months of 2012.
Mobile video ads have rocketed in value, although they started from a smaller baseline. Only £1.7m was spent on ads such as pre-rolls to run on mobile video from January to June 2012, and this has grown by a whopping 1,260 percent to be worth £23m for the same period this year.
The rollout of 4G across the UK should see this amount rocket even further over the next few reports. The advent of high-speed mobile networks will no doubt lead to more users watching video on their smartphones, if they can get a reliable high quality stream, and in turn will see more firms targeting video to mobile devices.
Video adverts were also popular across more traditional desktops and tablets, as well as on smartphones. Firms spent £135m on online video ads, a rise of 86 percent year-on-year. Social media is another growth area for online advertisers, with UK firms spending £242.5m for the first six months of 2013, 53 percent more than last year.
However, tablets have yet to see much of a dedicated push from advertisers, with tablet ads accounting for £10.5m between January and June this year, compared to the £23m spent on video ads for smartphones. This is up on the £2.4m on tablet ads spent in 2012, though.
BT wants to make the public switched telephone network history within eight years
Personal data being purloined by third parties via Facebook Login API
MacOS and iOS are better off apart, says CEO Tim Cook
Or they'll no longer be entitled to updates and bug patches