Internet Advertising Market Assessment 2007

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One of the main drivers of the market for Internet advertising continues to be the growth in take-up of Internet packages — and notably of broadband connections — by consumers over the past 7 years
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April 14, 2007 (Press Release) -- Internet Advertising Market Assessment 2007

Executive Summary

One of the main drivers of the market for Internet advertising continues to be the growth in take-up of Internet packages — and notably of broadband connections — by consumers over the past 7 years (since 2000). This has afforded and continues to afford greater opportunity for creativity in advertisement design, including the development of rich-media advertisements, which are more suitable for the faster broadband connections than for traditional dial-up connections.

Expenditure on Internet advertising is expected to have continued rising at a strong rate during 2006, reflecting confidence in online advertising by the marketing community, and securing the position it had established since 2003 as the fastest-growing advertising medium.

Paid-for search marketing, first adopted in 2001, largely by online businesses in the travel and finance sectors, continues to be an increasingly important element within the Internet advertising mix. It is popular with media buyers because it is simple and its success is easily measurable.

A turf war is developing among online advertising agencies. Small, independent agencies — which have emerged as a result of the lack of confidence in the market in the early 2000s — are being challenged by big, traditional agencies, which are restructuring to put digital media at the heart of their strategies.

One of the most important barriers to Internet advertising reaching mainstream status in terms of advertising media has been the difficulty in measuring how effective it is. As a result, November 2004 saw the launch of a global standard for counting online advertising impressions. This marked some firsts in the advertising industry: not only was this the first global measurement standard of its kind, but it was also the first time the advertisement itself had been measured as delivered to the consumer (versus other media that measure the programming or content).

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