In 2010, the advertising industry accounted for around 34.40% of the total service sector revenues and this sector is characterized as being fragmented in nature, with various sub-sectors, including online/ digital advertising. Increasing broadband penetration, education, income, rising number of internet users as well as popularity of social networking websites is behind the growth of online advertising globally. The online advertising industry is of various forms, but the most popular are digital search advertising, followed by display and classified advertising. 

In the UK, more than 30% of all advertising budgets are spent online, making the UK internet industry the one with the highest share of national ad expenditure, when compared to any other European market. In 2010 the UK internet advertising market grew 8.80%, the reason behind the growth was the retail sector. Finance, consumer goods and entertainment & media sectors contributed the highest percentage in the overall online advertisement revenues. In the UK, the reason behind the investment in online advertising is faster broadband services and expanding user base. By end of December 2010 the UK’s active online user base increased to 40.30 million. 

The report on “The UK Online Advertising Industry” includes a detailed study of the global advertising as well as the UK online advertising industry. We have also analyzed the industry and its various categories/ segments and trends prevailing in the market. The report also includes the industry, present performance and forecast of its various segments. Additionally, we have discussed cause and effect relationship of macroeconomic and industry factors on the industry providing the basis for the future outlook.