Google increases UK advertising spend

By James Riches topicIcon Internet News

Chrome, Gmail and Nexus all benefit from increased investment

Google spent 50% more on UK advertising in 2013 than it did in the previous year, according to data compiled by Nielsen Ad Dynamix.

The search giant spent nearly £46 million on its ad campaigns, up from £30 million in 2012. This strategy has seen it post the UK's 31st highest ad spend for the year, ahead of companies such as O2 (£41 million), Amazon (£36 million) and Coca Cola (£32 million).

Already boasting a UK search market share of 89%, Google has instead focused its efforts on products such as the Chrome browser, Gmail service and Nexus tablet in a bid to better rivals such as Microsoft.

Around a third of the money was spent on TV ads, with £3.5 million on press, £4 million on cinema spots and a further £5 million on billboards and other outdoor advertising.

Who topped the list?

BSkyB continues to lead the way when it comes to ad spend in the UK, spending £264 million on getting consumers' attention. They were followed by Procter and Gamble (£177 million), BT (£149 million), Unilever (£119 million) and Tesco (£116 million).

Of these five, only BSkyB increased their advertising investment from 2012, posting a near 10% rise.

Microsoft followed Google's lead in increasing its spend by around 50%, which it deployed to inform users about the switch from Hotmail to Outlook and its Surface tablet, as well as another round of anti-Google messages.

At £60 million for the year, it is now the 18th highest-spending advertiser in the UK, just ahead of Aldi (£56.5 million), Boots (£56 million) and Marks & Spencer (£50 million).

Kleon West, business development director at theEword, said: "It's very clear what Google is trying to do with its ad campaigns, and as such the increased spend makes sense. It's also interesting that Microsoft has seen a similar rise, and this could develop into an intriguing tussle for consumers."