September 28, 2007

Online growth- more stats, no surprises

A Guardian special Report, earlier this week outlined the trends and growth of online advertising which confirmed a lot of what we’re seeing in the viral industry and supporting our claim that viral is a most effective way of reaching consumers online.

A few interesting points from this report:

-The value of online advertising passed the total spent in the country’s national newspapers last year and, by mid-2008, Google will suck in more ad pounds than all of Britain’s TV channels put together, according to Mindshare and Initiative, two top media-buying groups. That will mean that Google is taking in morethan £1bn of UK ad money.

-86% of UK internet connections are now broadband and, by the end of next year, two in three households in the UK will have broadband, according to internet researcher agency Point Topic.

-A third of Europeans watch less TV once they have broadband, according to Forrester Research. The average European spends 14.3 hours online each week, compared with 11.3 hours watching TV. The growth of online video beyond the low-quality (but hugely popular) clips on YouTube looks to only accelerate as more homes gets broadband.

This associated article, flagged up some other good stats:

-A study by ad agency Carat and released by the Internet Advertising Bureau says money spent on online advertising is 2.4 times more effective than the same amount of money spent offline.

-Many web surfers are actively filtering out requests to “click here” on banners and skyscraper adverts. The latest figures published by advertising researchers at AdTech show that only one in every 500 banners are clicked on.

A final thought from the articles:

All too often advertisers simply reuse their conventional 30-second TV ad on the internet – widely regarded as lazy and ineffective. The trick is to adapt content to your internet audience – make it shorter, quirky and engaging and you’re onto a winner. Marketers worldwide are now looking to the medium as more than a direct response tool – it’s great for brand-building, too.

We hate to say we told you so….