The NY Times has a great account of the accelerating growth of online advertising in the UK. As recently as 2002, Britain lagged behind the US on a number of online related measures (broadband penetration, % of total spend, etc.) but is now racing ahead.
With this trend comes general deflationary pressure of advertising prices across the board because of the generally cheaper nature of online advertising (especially compared to TV) and its measurable nature.
It will be interesting to watch whether the very strong growth of online advertising eventually drags down overall advertising growth. Theoretically, the supply and demand economics will eventually play themselves out to an equilibrium point but what that point is remains to be seen.
(Thanks to John Winsor for pointing this article out.)
good
Posted by: lvweimin | May 11, 2007 7:50 PM | Permalink to Comment