Figures published last week by the industry trade group in association with PriceWaterhouseCoopers show that on-line ad spend now accounts for 3.9% of the advertising market, just above radio's market share of 3.8%.A more detailed analysis of the figures, published today, reveals that by the end of 2004, display and paid-for search advertising were almost neck and neck in terms of share (36.4% and 38.4% respectively). Both experienced dramatic growth as advertisers saw their audiences migrating on-line and began to regard the internet as the most effective way to reach them – a result of the efficiency of search and the branding power of on-line display ads."Mass audiences are now on-line and consumers are taking control," said Guy Phillipson, chief executive of the IAB. "They are researching goods and services to compare quality and prices before making their purchase decisions – all on-line. Brands are more exposed than ever and that's why brand building display ads have grown."He said that search often has a 'gateway effect' for new on-line advertisers to get results and build confidence before going on to invest in brand-building display formats.Display advertising grew 40.6% to £232.9 million as a result of this 'gateway effect' and the new 'Universal Advertising Package' introduced by the IAB last year, which enables advertisers to trade easily based on a consistent display model, using 'known' formats.Sponsorship also experienced yearly growth, up 95.6%, according to the IAB. Paid-for search grew 87.4% year-on-year to a 2004 total of £257.7 million. And on-line classified advertising grew 74.2% year on year to £161.4 million. According to the IAB, the web is proving to be the new classified ad medium and the place consumers look first for information about jobs, homes, cars and other big-ticket items.Finance and recruitment hold the top slots in market share, with 25.1% and 18% of the market respectively. The travel and transport (11.8%) and automotive (11%) sectors are third and fourth, followed by technology (9.7%), consumer goods (7.6%), entertainment (6.5%), business and industrial (4.3%), retail (3.7%), government (0.8%), and leisure (0.5%).
