Report: U.K. Ad Revenue Driven by Online

The Internet is the driver of ad media growth in the U.K., where it accounts for 13 percent of all media investment. That’s according to the “This Year Next Year U.K.” report released this week by WPP Group’s GroupM.

The total advertising media investment in the U.K. is set to reach £12.2 billion, or about $22.9 billion in U.S. dollars, this year, and to continue on to £12.7 billion in 2007. The growth is attributed almost exclusively to the Internet and other forms of digital media. The report says U.K. media growth was flat in 2005 and forecasts that this year’s spending will be down 2 percent.

Advertising investments on the Internet comprise 13 percent of all media spending. The amount is nearly equal to spending on national newspapers, which has declined from the 18 percent it held in 2000.

New media spending, which includes the Internet, mobile and interactive TV, will reach about £500 million in 2006 and 2007 combined. Interactive TV amounted to £16 million in spending in 2005, and mobile came to £30 million. In 2006, interactive television is set to reach £20 million, and the smaller screen is expected to bring in as much as £60 million in revenue.

Direct and other marketing, forecast in the report to reach £13.4 billion in 2006, is shrinking due to growth of the U.K.’s do-not-call registry and reduced costs of off-shore call centers.