In Scottish News #2

I read the article "Internet advertising up by 12.5%" in the Scottish magazine called The Scotsman, the article can be found HERE.

This article states that advertising spending on the internet increased by 12.5% in Britain in 2012. It states that this increase is because consumers are spending more time on smartphones and tablets. The total amount of pounds spent on advertising in 2012 was 5.42 billion.

This increase in internet advertising shows how markets can be adaptive to new technologies. These technologies allow them to grow and improve. With internet advertising, relevant ads can reach the consumer while they are surfing the internet. It also shows how the market is adapting to consumers preferences for spending time on smartphones and tablets. Advertisers are able to see where there advertisements will be seen the most and change there advertising mix to incorporate more online types of ads. If it is true that more people are spending time online, than these ads will reach more people.

The higher demand for internet advertisements is likely to increase the price and quantity of these types of ads. Because this is a substitute of other types of advertisements, the demand for these ads is likely to decrease causing the price and quantity of other types of ads to decrease too.

This increase in internet advertising indicates that the U.K. is utilizing new technologies. The markets in the U.K. are adjusting to find faster ways for advertisements to reach people. Business are able to adapt to consumer behavior and create a way to benefit from it. Some problems could arise from this shift. One problem is that with internet advertisements becoming more prevalent, consumers might be more likely to ignore them. Consumers may also become annoyed with these ads. The increased price of internet advertisements, may price some smaller business out of this market. Larger business and companies will benefit from this decrease in competition. Though the increase in internet advertisements may cause some problems to arise, it show that the U.K. has a market that can adapt and change to become more efficient.