Net to remain ’poor relation’ of TV

By LEXIE GODDARD, campaignlive.co.uk, Monday, 31 January 2000 12:00AM

Online advertising will remain the ’poor relation’ of broadcast and print media for the next few years, despite an explosion of dotcom start-ups and a sharp increase in the number of internet users.

Online advertising will remain the ’poor relation’ of broadcast and

print media for the next few years, despite an explosion of dotcom

start-ups and a sharp increase in the number of internet users.



Online research company Fletcher Research discovered that marketers of

both internet and non-web companies allocate an average 7 per cent of

their overall ad budget to the medium.



It predicts this figure will rise to 16 per cent by 2004, meaning

new-media owners will see advertising revenues rise steeply.



Fletcher Research also believes that the online ad market will expand

from pounds 50 million in 1999 to pounds 479 million in 2002.



However, it forecasts that television will remain the preferred platform

for mass-consumer advertising ’over the next few years and beyond’, with

companies opting for posters, press advertising, direct mail and

telesales before looking at the web.



’Our research indicates that offline advertising by dotcoms is already

proving to be a winning strategy,’ said Caroline Sceats, business

analyst at Fletcher Research. ’Companies that spend heavily on TV

advertising achieve far greater brand awareness than those that don’t.

For instance, the UK web brands that are enjoying widespread consumer

awareness, such as Freeserve, AOL and Egg, have done so on the back of

highly visible TV and print campaigns in recent months.’



Further predictions on the web advertising industry will be delivered by

William Reeve, head of Fletcher’s internet practice, when he speaks at

the @dtech conference tomorrow night (1 February) at the Savoy.



Fletcher Research is also working on a report that studies the

effectiveness of various online advertising tools such as banners,

sponsorships and microsites.



The report will be published in the second week of February. However,

some findings have been released already. For example, search sites and

portals are taking the lion’s share of online advertising. In 1999,

Yahoo! ran 103 ad campaigns, Excite took 88 and UK Plus carried 81. They

are the most popular sites for mass-market campaigns, although some

specialists such as financial services providers and computer companies

prefer sector-specific sites.



Fletcher also found that over half of UK web users have clicked on a web

ad, but, at the same time, 34 per cent are annoyed by ads and 24 per

cent considered them a time-wasting diversion.



In addition to producing management reports, Fletcher Research provides

market-research data on British internet users through UK Internet User

Monitor, the largest scale research project on the net.



It also owns the web advertising monitoring service Internet AdWatch.



This article was first published on campaignlive.co.uk

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