CAMPAIGN INTERACTIVE: INTERNET ADWATCH - Consumers are becoming increasingly happy to use the net to buy goods and services, John Owen says

By JOHN OWEN, campaignlive.co.uk, Friday, 27 November 1998 12:00AM

In February, consumer advertisers accounted for just 4 per cent of all online advertising spend. By July, the figure had risen unspectacularly to 10 per cent. But it jumped a further 6 percentage points in August, and the September figures - which we are due to feature in our next issue - show a leap to 24 per cent.

In February, consumer advertisers accounted for just 4 per cent of

all online advertising spend. By July, the figure had risen

unspectacularly to 10 per cent. But it jumped a further 6 percentage

points in August, and the September figures - which we are due to

feature in our next issue - show a leap to 24 per cent.



Over the same period, total adspend has risen by around 50 per cent from

a little over pounds 1 million in February to pounds 1,560,000 in

August.



The pure growth rate is impressive enough, but it is the fact that

consumer advertisers are driving that growth which is the most

significant development for the online advertising market.



OK, so I know that every article you’ve ever read about online

advertising has probably sought to proclaim the internet’s ’coming of

age’. This is no longer wishful thinking. The shape of the market at

this early stage is more important than its size. The arrival of

consumer advertising as the third largest spending sector on the net

suggests the medium has healthy long-term growth prospects.



Fletcher Research cites the World Cup as a major factor in wooing

consumer brands online. More important for the likes of W. H. Smith,

Arcadia Group, Volkswagen and Amazon was the need to promote online

products.



As more companies follow their lead and start putting aspects of their

businesses on the net, adspend will rise exponentially.



Fletcher’s definition of consumer advertisers leaves even more room for

optimism: it doesn’t include travel or banking - hence the presence of

Barclays Bank at number four in the overall top ten. Its pounds 48,000

spend wasn’t distributed in the manner of a niche financial services

advertiser.


It embraced pure consumer-oriented sites, largely those of traditional

media owners such as the Telegraph, the BBC, the Sunday Times and

Capital Radio, and the occasional specialist site like Money World.



With Barclays nestling alongside the likes of Ford in the top ten, it’s

time to consign the usual stuff you read in this column about the

domination of computer advertisers to the dustbin.



The top ten still accounts for a worryingly large proportion of the

total spend, accounting for 31 per cent with pounds 487,000. This share

is falling, however, which is yet another sign of a market which,

although not yet mature, is manifestly maturing with every passing

month.





TOP 10 UK ADVERTISERS

Rank                                Estimated value*(pounds 000s)

1        IBM                                            pounds 97

2        Citigroup                                      pounds 67

3        Amazon                                         pounds 54

4        Barclays Bank                                  pounds 48

5        Dell Computer Corp                             pounds 42

6        Ford Motor Company                             pounds 40

7        Microsoft Corp                                 pounds 39

8        Ericsson                                       pounds 36

9        Charles Schwab                                 pounds 34

10       BT                                             pounds 30

TOP 10 UK CONSUMER ADVERTISERS

Rank                                Estimated value*(pounds 000s)

1        Amazon                                         pounds 54

2        Ford Motor Company                             pounds 40

3        HM Government                                  pounds 31

4        Volkswagen                                     pounds 29

5        Arcadia Group                                  pounds 15

6        BMW                                            pounds 14

7=       PSA Peugeot Citroen                            pounds 11

7=       W.H. Smith                                     pounds 11

9        IMVS                                           pounds 10

10       Conrad Electronic                                    n/a

Internet Adwatch values estimated using rate-card-equivalent

prices.

Estimates do not take into account publishers discounts. Excludes

advertising and adverts placed with barter networks(eg

LinkExchange)

Data supplied from internet AdWatch(tm), the advertising monitor

produced by Fletcher Research (www.fletch.co.uk, 0800 068 1101).



This article was first published on campaignlive.co.uk

X

You must log in to use Clip & Save

Before commenting please read our rules for commenting on articles.

If you see a comment you find offensive, you can flag it as inappropriate. In the top right-hand corner of an individual comment, you will see 'flag as inappropriate'. Clicking this prompts us to review the comment. For further information see our rules for commenting on articles.

comments powered by Disqus

Additional Information

Campaign Jobs