I’d like to ask you a question.
Does the growth of online advertising spend in the U.K. versus the U.S. confirm that our economy is in/heading for a recession?
According to a new study (via ClickZ) internet ad spend in the U.K. grew by 39% in 2007. In contrast, internet ad spend in the U.S. grew by just 25%–still impressive, but way behind our English cousins.
I know what you’re thinking. The online advertising channel in the U.K. must be immature compared to America–after all, they only spent $5.5 billion compared to our country’s $21.1 billion.
In reply, I’d point out the spending on a per capita basis (I know Jordan will be proud of me):
- U.K. online ad spend = $90 per capita (total U.K. population approx. 61 million)
- U.S. online ad spend = $70 per capita (total U.S. population approx. 300 million)
So, the British appear to be spending more per person and their spend is out-growing ours.
Can we use this as a measure of the health of our economy. After all, online ad spending is some of the most effective and measurable marketing–if U.S. companies are pulling back budgets here, what else are they cutting back on?
OK, over to you. What do you think?