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Introduction to Online Advertising
Fastest Growing Medium:
The role of the Internet in advertising continues to grow faster than any other medium.
£1.6bn was spent on online advertising in the UK in 2005 according to PricewaterhouseCooper & the IAB (Internet Advertising Bureau).
Online is now the fifth largest ad medium, having already overtaken cinema, radio, consumer & business magazines and outdoor. It is set to overtake newspaper advertising, currently worth around £1.9bn in the UK.
Internet Usage on the Up:
- 29.3 million people are online in the UK – 62% of the population (NOP World 05)
- 65% of people in N.Ireland have Internet access at work (BT NI 05)
- 43% of households in N.Ireland have Internet access (BT NI 05)
- Northern Ireland is 100% Broadband Accessible
- Broadband users spend twice as long online as those on dial up (Nielsen NetRatings 05)
Internet as a Marketing Tool:
- Advertise products & services
- Provide purchase information, where & how to buy
- Build customer loyalty & branding
- Generate leads and direct response
- Drive traffic online and offline
- Email marketing
- Collecting customer information (data surveys, registration data)
Online Advertising is Effective!
Online is an important advertising tool both for branding and direct response objectives. Research by the IAB & EIAA* has proven the effectiveness of online advertising - either in its own right or as part of an integrated traditional media campaign – to increase brand awareness, message recall and purchase intent.
What makes the Internet unique is that it shares many of the strengths of traditional media yet also offers a number of specific advantages:
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Coverage - The Internet accounts for a quarter of weekday media time** - allowing advertisers to reach audiences outside prime times for traditional media |
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Reach of leading websites has overtaken that of many traditional mediums - 31.7 million people are online in the UK, that’s 67% of population (TGI*** Q1 06) |
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Creative - The Internet is unlike any other media in that it presents the opportunity to utilise text, graphics, animation, audio and video in one format. With the recent uptake of Broadband user experience of the Internet is much more rewarding. |
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Highly Targeted & Focused – Online has the ability to target advertising more precisely e.g. by user location, content of web pages etc allowing more focused media placement. |
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Interactive - Advertising online allows consumers to interact and engage with advertisements, generate response and brand recall |
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Adaptable - Updating and changing copy and graphics can be accomplished more quickly with online ads than with traditional media. Online adverts can be therefore be quickly revised to reflect changing messages throughout the duration of the campaign. |
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Measurable – Online offers transparent accountability that no other medium can offer |
*Interactive Advertising Bureau & European Interactive Advertising Association
**BMRB Internet Monitor Q3 3005
*** The Target Group Index
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