LONDON (Dow Jones)–Internet search giant Google Inc.
Google generated sales of $2.53 billion, or GBP1.30 billion, in the U.K. in 2007,
according to a regulatory filing.
The figures underline the extent to which Google is closing the gap, in sales terms, with the U.K.’s largest advertiser-funded broadcaster, ITV PLC (ITV.LN), and its increasing market share in the U.K. advertising marketplace.
Google’s U.K. sales grew 45% in 2007, according to the filing. This represents a significant slowdown in the sales growth rate from 80% sales growth in 2006. Google generated roughly 15% of total sales in the U.K. in 2007, down slightly from 16% in 2006.
In the filing, Google blamed weakness in key market sectors such as finance and travel for the slower U.K. growth.
ITV generated sales of GBP1 billion in the first half of 2007. More than half of ITV’s advertising revenue comes from its flagship ITV1 channel, which saw revenue contract 9% in the first half of 2007, compared with the year-earlier period.
UBS, commenting on the filing, forecast that internet advertising would account for around 20% of total U.K. advertising expenditure by the end of 2008.