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The rise of Online advertising
The internet today has seen the balance of power in advertising shift from This change has come about through growing penetration of broadband
offline to online. Despite an overall decline in marketing budgets, 2009 is coupled with the lower price of computing power (free laptop deals
likely to see a continued rise in online ad spend – which already accounts are now commonplace, for example). As such, more and more media
for 20% of all ad budgets in the UK. This figure is expected to continue to consumers now watch content online and on-demand. A recent study by
grow through 2009 – although admittedly not at the double digit rates research firm Hitwise found that UK internet traffic to video websites was
experienced in the past few years. Still, by most estimates, we can expect up 40.7%. UK traffic to BBC iPlayer has increased by a staggering 152.1%
online to grow by around 7% year-on-year. over the last 12 months, peaking over Christmas 2008 – iPlayer is now the
There are several factors driving this growth. With marketing budgets on the
22nd most visited website in the country.
decline, and clients under pressure to justify every penny, many marketers Add to that the fact that TV revenues are reportedly down almost 30%
are shifting or extending traditional offline budgets to online. In a recession, year-on-year when compared to Q1 of 2008 and the benefits for
accountability is more important than ever, and this is what online offers. advertisers looking to cut their TV spend (but keep producing engaging
However, this isn’t is just about migrating any old content online or starting
video-type content) are obvious.
a Facebook group or Twitter account. Engagement, coupled with ROI, At Adconion, we believe that the network model must evolve into what
is the most important element of an accountable online presence. we call an ‘audience network’ – this means being more than just a ‘go
Which is great news for those technologies that really do provide online between’ for brands and publishers, and acting as more of an ‘audience
engagement – behavioural targeting, online video and contextual ads aggregator’. Audience networks can leverage their vast reach and
should all see increased investment over the next year or so because of behavioural targeting technology to ensure that online branded content
their proven returns in terms of both ROI and engagement. and entertainment is being consumed by the most relevant audiences.
Networks are amongst those especially well placed to add value in the
This ability to bring together brands and content with relevant audiences will
downturn. Networks have always worked to tight performance targets –
allow the ad networks of today to evolve into massive converged broadcast
indeed, this is the basis for their entire model. But they are increasingly
networks of tomorrow, ushering in a new era of online advertising.
moving towards offering more creative solutions like online video and Visit adconian on stand e1177.
bespoke content.
Mike James – MD, Adconion UK
The technology behind online video is evolving at an exponential pace.
Plus, consumer behaviour is increasingly migrating towards online as the
first port of call for information, entertainment and fun.
Mobile advertising
In these uncertain economic times the mobile marketing channel offers a step to reduce the cost of production and ensure mobile campaigns can
relatively new and particularly valuable opportunity for brands and marketers be delivered with a high level of consistency amongst several publishers and
who are experiencing pressure on their budgets and an increased focus in countries at the same time (just visit the MMA website or the Inside Mobile
direct return on investment marketing initiatives. website www.insidemob.com to download a free copy of these guidelines).
The mobile channel is currently experiencing banner response rates that are The last six months has seen the mobile landscape change significantly and
an average of ten times higher than comparable media placements on the for the better, the introduction of consumer led apps on platforms such as
Internet. Minimum media spends in the mobile channel are often less than the iPhone app store and the recent introduction of the vodafone, BlackBerry
the internet too, this can be extremely favorable when there are pressures on and other app platforms in the market place has increased the media and
budgets and a marketer is testing a new media channel for the first time. marketing opportunities for brands to reach their target audiences through
During the last 12months we have also seen great progress in pushing
new and innovative mobile media channels.
the mobile channel to more accountability and standardization in media We are also seeing an increase in the use of mobile as a connector for direct
formats, two vital steps forward in ensuring the overall success of the channels response price led offers. Mobile coupons and vouchers via mobile banners,
commercial potential. on-pack promotions, billboards and print can be extremely effective and
There are now many products in the market such as Bango Analytics
relevant given the predominate consumer mindset of value for money in
and AdMob Mobile Analytics that are proving extremely important in
today’s economic climate.
understanding the true value of our marketing campaigns by providing In summary, mobile might be the ‘new kid on the block’, but is already
core information about the levels of engagement with our mobile sites and proving itself as a vital communications channel for both the brand and
applications that is comparable to the standards of accountability we expect direct response marketer. During the coming year we expect to see a
form the internet channel. There are additional insights specific to the mobile continued rise in marketers turning to the mobile channel to provide
device available too, such as a visitor’s location and mobile device; both immediate results to marketing campaigns as well as growth in the use of
metrics are now accountable for certain types of campaign. mobile to provide deeply engaging consumer experiences through smart
In October 2008 the MMA released its global mobile advertising guidelines
handsets such as the iPhone and the Google G1 phone.
to provide standardized global formats, guidelines and best practices Visit inside Mobile on stand e2125.
recommended for any brand or agency looking to implement mobile
dustin hamlin – MD, Inside Mobile
advertising initiatives in a variety of mobile media channels, including web,
messaging, video and applications. This MMA initiative has been an important
10 www.internetworld.co.uk
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