Search Engine giant Google generated substantially more revenue in advertising than ITV1 did in the third quarter, according to The Times, with £327 Million compared to £317 million in this three month period.
ITV1 had a huge boost in revenues from advertising during the Rugby World Cup. but despite this Google romped in first in the financial stakes for the first time ever. In the year to September 2007, Google generated £925 million in the UK and is expected to attain £1.25 billion by year end. Compared to last year’s £871 million, the growth of this titan is a substantial 43.5%.
Despite the initial drawing ahead of the search engine, fourth quarter advertising revenues for ITV1 are expected to be substantial in the run up to Christmas pipping Google to the post with an expected £1.3 billion by year end. The ITV group (1,2,3) are expected to generated £1.45 billion in total, but with growth in online advertising spend with the search engine collossus - which currently has 75% of the search advertising market - it is expected that it will overtake the ITV traditional and digital channels by the close of the financial year, 2008.
Faced with this information, ITV has called for a reduction of the regulation on ‘traditional’ ‘brand builder’ advertising compared to ‘brand finder’ search advertising.
Advertising in the UK hit £9.1 billion in the first 6 months of this year, according to the IAB & PriceWaterhouseCoopers, which included an increase of 41% in online advertising as businesses realise the potential of the internet and the online advertising environment.