Wednesday, November 01, 2006

Google ad

Google is set to overtake Channel 4's ad revenue by the end of year and ITV1 by 2008.

If you hadn't realised the ground had seismically shifted, then this is your final wake-up call before you roll over and go back to sleep.

Last month, it was reported that UK internet advertising spend rose by more than 40% in the first half of the year to £917.2m, and is now just under a percentage point behind national newspapers in terms of share.

The IAB said that the gap between online and newspaper advertising is narrowing fast and if this growth rate continues then online will be a £2bn medium by the New Year.

Newspapers are one thing, but television really seals it. The search giant will pull in around £900m of ad revenue in the UK by the end of the year according to Duncan, in comparison with Channel 4's estimated £800m.

If it’s passing C4, it must have passed Five already and that means ITV is not far off from being surpassed as more and more cash goes online.

Media buyers are saying that Google overtake ITV1 as early as next year.

Duncan said that traditional media needed to wake up to growing threat of online ad revenue.

"People need to wake up and realise that this is not just a cyclical issue. There is a deep structural change taking place. If we want to protect the fantastic legacy of UK broadcasting, we need to wake up to this sooner rather than later."

He's right, but it isn't just the TV industry -- it is the media industry as a whole that needs to wake up and really look beyond what they are doing to compete with pure-play online firms like Google.

As newspapers are passed, many in that industry must have already realised that they have become content islands quite separate from the rest of the online industry. Virtually all of the major newspaper groups, even those who have done great work online, lack any type of community and that is what everything online comes back to.

TV as well as papers should be in an ideal position to exploit it and bring in that extra ad revenue, but no one has yet.

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