Digital Britain report: What does it mean for advertisers?

Last month, the government unveiled the long-awaited Digital Britain white paper, which included the aim of implementing universal access to broadband by 2012.

Prime minister Gordon Brown, revealing the plans for the country’s digital future, said: “Investing in areas such as broadband access for every home and business and the move from analogue to digital technology will bring benefits across the board, driving growth, enabling businesses to thrive, and providing new opportunities and choices for households right across the country.”

The measures outlined in the white paper also include setting up a fund for investment in the next generation of superfast broadband so that people across the country will have access to high-speed internet.

This could have major implications for firms in terms of the way they choose to market themselves, their services and their products.

Responding to the launch of the Digital Britain white paper, Edd Dawson, managing director at broadband.co.uk, insisted that the internet had become an essential for people in this country.

“It has reached that point, for the majority of people already, which is why there is the clamour for universal provision for people who wish to take it. It is becoming like the fourth utility along with gas, electric and water,” Mr Dawson said.

“In five years I think it’ll probably be even more [essential],” he added.
Britain’s track record in the online marketing sector was also highlighted in the white paper, which emphasised the country’s impressive reputation for making and selling creative content and building businesses around this.

The report pointed to UK firms’ success in the international online marketing arena and the government’s desire for this to continue.

“There is welcome acknowledgement of the contribution digital advertising – in particular targeted advertising - will make in helping to monetise online content,” wrote Nick Stringer, head of regulation at the Internet Advertising Bureau (IAB).

With the implementation of high-speed broadband, internet marketing is likely to take up an increasingly large part of companies’ budgets.

The deadline for hooking the whole of the UK up to fast internet also coincides with the staging of the London Olympics, which eMarketer predicts will prompt a surge in spending on online marketing.

In its latest report, UK Online Advertising: Spending and Trends, the digital intelligence firm predicted that the platform will continue to grow in popularity as a method of promotion.

While eMarketer suggested that growth this year is likely to be fairly subdued, at just 0.9 per cent, it also forecasted significant expansion of the market in 2010, when spending is expected to rise by 4.7 per cent to £3.54 billion.

In 2011, the market will grow by 9.6 per cent and this will rise again in 2012, with expenditure expected to be up by 11.3 per cent in the year of the London Olympics, standing at £4.3 billion.

“The economic crisis seems to be actually accelerating the shift of marketing funds online,” concluded Karin von Abrams, senior analyst and author of the report.