UK internet ad spend cooling off

UK internet ad spending could be reaching a peak, according to the latest Bellwether Report.

The survey, produced by NTC Economics on behalf of the Institute of Practitioners in Advertising, revealed a cooling in internet advertising budgets in the final quarter of 2007.

While the data showed that online ad spend continued to increase during this period, accounting for nine per cent of total marketing spend, the rise was the weakest seen since the third quarter of 2003.

The report also found that 23 per cent of companies revised up their internet budgets, while seven per cent showed a decline.

Interpreting the data, Wayne Arnold, chairman of IPA Digital, commented: "The fact that it was the lowest level growth since quarter three 2003 illustrates the positive reality that the internet is now core to many clients´ marketing needs so unfortunately not entirely immune to the current economic environment."

It has been predicted by media buying agency Group M that the internet will account for 24.8 per cent of UK media spend by the end of 2008.

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