Online Marketing Data

14 Dec 2006

Online advertising spend is on course to overtake outdoor advertising by the end of the year with a global forecasted growth of 28.2 per cent in 2007, according to the latest report from ZenithOptimedia.

The report predicts that the internet's share of total adspend is likely to reach 8.6 per cent in 2009, up from 5.8 per cent in 2006, and if growth continues as expected it will exceed 10 per cent in the near future. The largest type of internet advertising is still paid search with classified revenues continuing to move online.

The growth of online advertising is leaving its offline competitors trailing behind with the predicted growth for all other media peaking at 3.9 per cent.

ZenithOptimedia's report expects global adspend to increase 5.4 per cent in 2007, 5.8 per cent in 2008 and 5.3 per cent in 2009. GroupM also released its latest adspend forecasts global advertising growth revealing slightly more modest expectations: 5.3 per cent in 2006, and five per cent in 2007.

Media agency Carat also boosted its prediction for global advertising spend for 2006 and 2007, revising the growth figure up to six per cent earlier this week.

10 Oct 2006

Weekly European internet use has risen to an average of four hours a week, overtaking print media for the first time, according to a report released by Jupiter Research.

Magazines and newspapers attract just three hours a week where overall media consumption stands at 19 hours a week. The research highlights that use from country to country is determined by age and broadband access. We would expect countries with a high take up of household broadband to report the greatest amount of time spent online. This is the case in France where high rates of household broadband access lead to the greatest amount of time spent online.

Vice-president and research director at Jupiter Research, Mark Mulligan said: "The fact that internet consumption has passed print consumption is an important landmark for the establishment of the internet in the European media mix."

Source: Brand Republic

Internet usage overtakes TV viewing

08 Mar 2006

For the first time, using the internet has overtaken watching TV as the UK's favourite activity. According to research conducted by TNS, two thirds of users increased the amount of time they spend online over the last year.

The research, sponsored by Google, reveals that a typical user spends 164 minutes a day online, compared with 148 minutes spent watching television. With the increasingly popularity of online communities and shopping online at an all time high (an average of £446 per user every year) surfing the internet is proving to be one of the most favoured pastimes.

It is among 16-24 year olds where the biggest growth in usage is seen and as the recent Nielsen//Netratings research suggests, they are likely to be spending their time online participating in activities ranging from social networking through to catching up on the sports or entertainment news.

With the internet being both a fast and simple way to access information, Kate Burns, head of advertising sales at Google, comments that it is people's "insatiable thirst for information" that drives online use.


Online spending has a new favourite

07 Feb 2006

Online spending looks to have a clear preference in the form of search based advertising. Advertisers are increasingly choosing to appear during searches for terms rather than placing display ads.

A report by Thomson Intermedia and KPMG reveals that advertising on sites such as Google grew more strongly in the last quarter of 2005 than spend on online display ads. It is important to note, however, that search based advertising is currently an immeasurable quantity so the report relies upon market sentiment and the views of a number of significant clients to inform its findings.

Only display adspend revenues can currently be measured, which are reported to have declined at the end of 2005. Paul Ryan, Thomson Intermedia's head of insight comments: "Anecdotally, we believe that type of advertising (search-based) is taking a larger and larger part of adspend in new media."

With online spend dominated by the entertainment, media and leisure, IT and communications, and financial sectors, the growth trend is set to continue. And with its popularity will come the need for clearer monitoring of online search adspend.

Source: Brand Republic

Broadband take-up rockets

22 Feb 2006

National StatBroadband now accounts for 64 per cent of all internet connections in the UK, according to figures for December released by the Office of National Statistics (ONS).

Dial-up appears to be in terminal decline, with connections down by a third compared with last year. Between December 2004 and December 2005 broadband grew by 59 per cent, fuelled by its widespread availability and competitive prices. Over the same period dial-up fell by 34 per cent.

Commenting on the trends Blair Wadman, of the comparison service, said: "We expect dial-up services to become almost obsolete by the end of the year as more internet users switch to broadband to access video or other content reliant on a high-speed connection."

Source: BBC News

Online ad spend reaches £1.1bn

21 Mar 2006

The latest figures from the World Advertising Research Center (WARC) on behalf of the Advertising Association (AA) show that spending on internet advertising in the UK bucked a bleak trend in 2005 with an estimated 73 per cent increase.

Internet ad revenues surging past £1.1bn was one of the exceptions in a difficult market, which saw reduced consumer spending and economic difficulties hit total UK ad spending, according to the association. Total advertising revenues in the UK rose 2.1 per cent last year, slowing from a 6 per cent increase the year before.

The internet figures are WARC estimates – expenditure data for this medium will be published shortly by the Internet Advertising Bureau.

Spending on TV ads recorded a 3.8 per cent rise with revenues over £4bn. Billboard and other outdoor advertising revenues pulled in nearly £900m - a 5.8 per cent increase.

Radio, regional newspapers, direct mail and national newspapers all continued to show most significant drops in ad revenue.

National newspaper revenues dropped 3 per cent while the regional press fell 4.4 per cent. Revenue from classified ads fell more than five per cent across all newspapers while display ads decreased by 1.1 per cent.

Consumer magazine revenues rose by one per cent while business magazines dropped by 1.6 per cent, according to the figures.

Radio ad revenues fell four per cent to £521m.

The total figure does not include advertising expenditure in directories, which will be published later this year.

Online ad spend ascent continues

06 Oct 2006

Internet advertising spend continues its ascent with a rise to £917.2m in the first half of 2006, an increase of more than 40 per cent. In terms of share, this puts online less than a percentage point behind national newspapers.

Released as part of the Internet Advertising Bureau (IAB) and PricewaterhouseCoopers' ad spend study, the latest figures conclude that internet adspend now has a market share of 10.5 per cent, and is expected to overtake the 11.4 per cent achieved by national newspapers before the year is out.

Guy Phillipson, chief executive of IAB, said: "The gap between online and newspaper advertising is narrowing fast and if this growth rate continues then we will be a £2 billion medium by the New Year."

Adpsend study breakdown by:

Display - 23.5%

Paid-for search - 57.9%

Classified - 17.7%

While spend on other media dwindles, the internet has contributed an additional £284m to total UK advertising revenues with the rising popularity of and interest in blogs, online communities and user-generated-content assisting in raising the internets profile with advertisers.

Source: Brand Republic

A new online generation, says Ofcom

11 Aug 2006

The emergence of a mainly online generation of customers is revolutionising both media and telecom markets, say Ofcom.

Customers are taking advantage of falling prices encouraged by competition and are increasing their use of broadband internet, digital TV and radio and mobile phones

Ofcom's annual communications market report states that for adults aged 16-24, the internet is their preferred medium: they spend 21 minutes more online per week than the general population.This age group also watch TV and listen to radio less than the average consumer. Seventy per cent of them have visited a social networking site such as Myspace and Bebo and more than half use them on a weekly basis, further compounding their gravitation towards and loyalty to the internet.

As we would expect, mobile phones are clearly an essential part of the lives of most 16-24 year olds with them making seven more calls and sending 42 more texts per week than the general population.

Ed Richards, chief operating officer at Ofcom said: “The sector is being transformed by greater competition, falling prices and the erosion of traditional revenues and audiences. A new generation of consumers is emerging for whom online is the lead medium and convergence is instinctive."

Advertisers have monitored these trends and online ad revenues have been climbing, achieving a 7.8 percent share of the market in 2005 (IAB/PWC AD Spend Study).

Source: Brand Republic

UK search market to grow to £1.41bn in 2006

21 May 2006

The UK market for search engine marketing will grow to £1.41bn by the end of 2006, a 65 per cent rise from £855m in 2005, according to research published in E-consultancy’s 2006 Search Marketing Buyer’s Guide.

The UK paid search market, which more than doubled in size during a remarkable 2005, will grow to £1.26bn in 2006, a 67 per cent increase on 2005 when paid search was worth £757m.

E-consultancy analyst Linus Gregoriadis said: “Marketers will continue to increase their investment in search because of the attractive returns and its accountability. The market will remain extremely buoyant through 2006 and beyond, though we expect the upward trajectory of paid search to flatten slightly as the market becomes more mature.”

One-in-four US web users view video content weekly

31 Mar 2006

OPA logoOne-in-four US web users watch video content online at least once-a-week, while almost half of all US web users view video content online at least once-a-month, according to a new study by the US Online Publishers Association (OPA).

The OPA video study found that 24 per cent of internet users access video at least once-a-week, while 46 per cent watch video at least once-a-month. News leads the way in frequency of viewing, with 27 per cent of online video viewers watching at least once-a-week, followed closely by funny videos with 26 per cent watching these at least once-a-week.

Online video viewing is very common at home (39 per cent of those with home internet access watch at least once-a-week) compared to 19 per cent of those who watch at least once-a-week at work. When it comes to finding the videos they watch, internet users often rely on a handful of specific sites. Half of all video viewers go to a specific website to find video, and a strong majority of video viewers (58 per cent) say they rely on two to five sites. Another popular way to find video is through random surfing, which 48 per cent of video viewers said they do.

The OPA study found that online video advertising is being viewed regularly and leads to specific actions. Sixty-six per cent of video viewers have watched online video ads, and 44 per cent of those have taken action on what they've seen. Visiting a Web site ranks highest at 31 per cent, while eight per cent are actually driven to make a purchase. Video ad watchers generally prefer short ads, however 39 per cent said they would watch ads lasting longer than 30 seconds.

"The OPA study makes it clear that online video viewing has become commonplace," said Pam Horan, OPA vice president of marketing and membership.

She added: "The video viewing boom has been propelled by rapidly expanding video content and consumers' increased reliance on the web for news and entertainment. And while humorous videos seem to get the buzz, it's hard news that is most frequently watched by web users."

From Early Adoption to Common Practice: A Primer on Online Video Viewing, the first OPA study to look at how the US online population perceives video and video advertising, was conducted in February 2006 and used a sample of 1,241 internet users aged 12 to 64 which is representative of the US online population.

Women online increased by 63 per cent

24 May 2006

The European Interactive Advertising Association (EIAA) Digital Women Report reveals that if current growth continues, there will be more women online than men. Over the last three years time spent online by women has rocketed, increasing by 63 per cent compared with 54 per cent for men.

The pan-European report, the first of its kind, is part of the EIAA Mediascope Europe Study which looks at how women in Europe spend their time across media and internet consumption. The study indicates a decline in other media consumption making the internet Europe's fastest growing media.

The report states that 16-24 year olds, young professionals and women with children are driving the internet's growth. Women with children use the internet 14 per cent more than the average woman. Popular sites visited by women include travel and banking / finance sites.

UK tops Europe ecommerce league

28 Jul 2006

The UK has become Europe's biggest online shopping market, overtaking Germany, according to new research from Mintel.

UK shoppers spent 9.79bn euros (£6.7bn) online in 2005, compared with 9.71bn euros in Germany, reported the research firm.

Total internet sales in Europe rose by 51 per cent to 40.2bn euros in 2005. Mintel expects that figure to triple by 2010.

"Mintel is confident that online sales of goods will grow strongly over the next few years as this channel matures," said senior retail analyst Neil Mason.

Mintel said there was plenty of room for growth in online spending, with sales made over the internet making up 2 per cent of total European retail sales.

Search Research

Internet ad spend up 62.3 per cent

28 Jun 2006

UK internet advertising spend has achieved a record rise of 62.3 per cent according to official research released by the Advertising Association.

Total advertising spend in the UK during 2005 increased by just 0.6 per cent with the internet taking a 7.2 per cent share of total advertising expenditure. National and regional press accounted for the largest share (45.3 per cent) followed by television (25.4 per cent), direct mail (12.5 per cent) outdoor, (5.5 per cent) radio (3.1 per cent) and lastly cinema (1.0 per cent).

The research also explored display advertising (excluding classified ads). The internet accounts for a rather modest 2.5 per cent of display advertising and unsurprisingly, television holds the greatest share at 45.3 per cent.

During 2005, while an impressive £19bn was spent on advertsing in the UK, this is only up from £18.5bn in 2004. At 62.3 per cent, the internet attracted £1.3bn of advertisers budgets in 2005, up considerably from the previous year's £824m.

The research was conducted by the Advertsing Association and all figures include production costs and media spend.


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