It’s simple really. Net ads can offer a fine target for advertisers. Newspapers cannot even approach this. Sorry, but this is a simple fact.

The internet will overtake national newspapers in the battle for advertising spending in the UK by the end of the year, it was predicted yesterday. GroupM, which accounts for about 30% of global media buying, says in a report to be published next month that the internet will account for 13.3% of the £12.2bn UK advertising market this year, overtaking national newspapers with a share of 13.2%. The figure for web advertising could be even bigger, because the report excludes the estimated £1bn a year spent on “affiliate advertising”, which largely comprises adverts placed on smaller websites.

Net advertising ‘to overtake national newspapers’

· Classifieds lead migration in search for ‘reach’
· Tabloids hit hardest but all papers will suffer

Dan Milmo, media business editor
Wednesday May 31, 2006
The Guardian

The internet will overtake national newspapers in the battle for advertising spending in the UK by the end of the year, it was predicted yesterday. GroupM, which accounts for about 30% of global media buying, says in a report to be published next month that the internet will account for 13.3% of the £12.2bn UK advertising market this year, overtaking national newspapers with a share of 13.2%. The figure for web advertising could be even bigger, because the report excludes the estimated £1bn a year spent on “affiliate advertising”, which largely comprises adverts placed on smaller websites.

Article continues
The speed at which advertisers have shifted spending to the web has surprised many. Six years ago the web was an upstart medium controlling only 1% of the multibillion-pound British advertising market, despite being lavished with media and investor attention. The related factors of growth in broadband usage and declining newspaper circulation appear to have justified the hype. “Reach is what advertisers want most,” says the report. “National newspapers still have lots of it, but less reach means less ad money.”… Source: Guardian Unlimited

Tags: advertising, newspapers, net, national