Internet Boom: Web ads going up then Tv ads

Britons are changing their media habits as more women and people over 65 go online and as more consumers opt for a single provider for their Internet, entertainment and phone services, an industry report says.

Among the changing trends in 2006, children are cutting back from using computer games to spend time on mobile phones and the Internet, British media regulator Ofcom said in its annual report.

As technologies, platforms and devices have come together due to increased broadband penetration, more people are making phone calls over the Internet, listening to radio via television and watching TV over mobile phones.

In response, advertisers diverted more money to the Internet and away from traditional sources, Ofcom said.

"Our communications sector continues to develop at a fast pace, with consumers of all ages using a range of devices to find the services they want," said Peter Phillips, Ofcom partner of strategy and market developments.

Average daily Internet use was 36 minutes in 2006, up 158 per cent on 2002, while time spent on the mobile phone also increased, up 58 per cent at almost 4 minutes per day.

On the down side, time spent watching TV fell 4 per cent during that period, although it still dominated with average daily viewing at 3 hours and 36 minutes.

Listening to radio was down 2 per cent at 2 hours and 50 minutes, and time spent on a fixed-line phone was down 8 per cent at 7 minutes.

WEB ADS UP, TV ADS DOWN

As a result, TV advertising spend fell 4.7 per cent in 2006 from 2005, coinciding with the spread of video content available online and the growth of digital video recorders, which can skip adverts.

Radio advertising spend fell 7.8 per cent in the same period, while Internet advertising spend rose 47 per cent.

In other changes, more people over the age of 65 used the Internet, spending an average of 42 hours online every month, more than any other age category, while one quarter of all British Internet users are over the age of 50.

The Web also attracted more women, with those aged 25 to 34 spending more time on the Internet than men of that age.

Some 20 per cent of respondents to a survey said they made phone calls over the Internet offered by so-called VoIP (voice over Internet protocol) providers, while headline Internet speeds increased. By April 2007, 53 per cent of households had a broadband connection.

The growth of broadband penetration has been driven in part by groups such as satellite operator BSkyB and Virgin Media, which offer broadband as part of their packages.

The number of consumers taking services in bundles rose to 40 per cent of the population by April 2007, up by a third over the 12 months.

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