LONDON (Reuters) - Spending on internet advertising in Britain grew 10 percent during the first half, due to a boom in ads around online video and social media sites, lifting the medium to a record market share of 24.3 percent.
According to the biannual report from the Internet Advertising Bureau (IAB), the return to double-digit growth for the internet mirrored the general recovery of the entire ad sector.
The 10 percent growth to nearly 2 billion pounds compared with a growth rate of 4.6 percent in the first half of 2009.
Spending on online display adverts was up 6.4 percent, taking a 19.3 percent share of the medium.
That was boosted by pre and post-roll video advertising which increased by 82 percent to 20.7 million pounds, a five-fold growth in two years, and advertising on social media sites which accounted for around 13 percent of all online display adverts.
Away from display ads, paid search marketing continued to grow strongly, with an increase of 8.9 percent to a market share of 59.9 percent. Classified advertising, which was hit during the economic downturn, was up 11.4 percent.
“The return to double digit growth in UK online advertising is characterised by increased investment by major brands particularly in FMCG (fast moving consumer goods) and entertainment,” said Guy Phillipson, chief executive of the IAB.
“The effectiveness of social and video ads for classic brand building is reflected in these formats enjoying exponential growth.”
Reporting by Kate Holton; Editing by Greg Mahlich