Reportlinker Adds Internet Advertising Market - 2010 Edition

Jan 12, 2010, 10:28 ET from Reportlinker

NEW YORK, Jan. 12 /PRNewswire/ -- Reportlinker.com announces that a new market research report is available in its catalogue: Internet Advertising Market- 2010 Edition  http://www.reportlinker.com/p0171105/Internet-Advertising-Market--2010-Edition.html. In 2008, UK expenditure on Internet advertising was valued at 3.35bn pounds Sterling. The Internet is the UK's fastest-growing advertising medium and, in the first half of 2009, the UK became the first major European market in which online advertising expenditure exceeded television advertising expenditure.

The UK advertising market in general is being affected by the recession and revenues from other advertising media, including television, radio, newspapers, magazines and outdoor, are forecast to decline in 2009.

Although it is still important, television no longer monopolises the media schedule as it did in the past. Marketers have realised that digital promotion, including Internet advertising, is an inexpensive and effective way of building their brands. This trend has been prompted by a fundamental change in consumer behaviour due to the rise of the Internet and media fragmentation.

Search marketing remains the largest single format within the Internet advertising mix. It has become a staple on the media schedule and is increasingly integrated into traditional and online advertising campaigns. The second-largest sector of the Internet advertising market is classified advertising, expenditure on which now exceeds that on display advertising. Solus e-mail advertising is now a very minor sector of the market.

One controversial area of Internet advertising is behavioural advertising, which works by constantly analysing customers' Web surfing activity to determine their interests. The technology then delivers targeted advertising to users when they visit certain websites. In April 2009, the European Commission opened infringement proceedings against the UK as a result of concerns about the UK's implementation of EU ePrivacy and personal data-protection rules. The Office of Fair Trading (OFT) has also begun an investigation into potentially misleading advertising on the Internet.

Original research for this report found that 97.3% of British Internet users now access the Internet at home. The survey also revealed that 96.3% of those who had used the Internet in the previous 12 months usually accessed the Internet using a broadband connection. Online shopping continues to increase in popularity, with 86.4% of the Internet users in Key Note's survey having shopped online. Concern about fraudulent card use, though still evident, appears to be in decline as a barrier to online transactions.

Key Note forecasts that expenditure on Internet advertising in the UK will continue to rise in 2009, although the rate of growth will be considerably lower than in previous years, as a result of the recession. Thereafter, Key Note projects that expenditure on online advertising will rise more rapidly, in line with the increasing popularity and use of the Internet.

Executive Summary

1. Introduction

OVERVIEW

DEFINITION

2. Strategic Overview

MARKET DYNAMICS AND SEGMENTATION

The Total UK Advertising Market

Table 2.1: The UK Advertising Market by Mainstream Advertising Medium (% and  pounds bn), Years Ending December 2005-2008

Internet Advertising

Table 2.2: UK Internet Advertising Expenditure by Format (pounds m and %), Year Ending December 2008

Search Marketing

Classified Advertising

Display Advertising

Solus E-mail Advertising

THE CONSUMER

Ownership and Use of Home Computers

Table 2.3: Only Home Computer or Most Recently Obtained Home Computer — Desktop or Laptop (% of adults), Year Ending March 2009

Table 2.4: Only Home Computer or Most Recently Obtained Home Computer — Reasons for Use (% of adults), Year Ending March 2009

Internet Access and Activity

Internet Access

Table 2.5: Proportion of UK Households with Access to the Internet (%), 2006-2009

Table 2.6: Number of UK Households with Access to the Internet by Type of Access (million), 2006-2009

Table 2.7: Proportion of UK Households with Access to the Internet by Type of Access (%), 2006-2009

Frequency of Use

Table 2.8: Frequency of Internet Use in the UK by Sex and Age (% of adults who had used the Internet during the 3 months prior to interview), 2009

The Most Popular Internet Activities

Table 2.9: Popular Reasons for Using the Internet (% of UK adults who had used the Internet during the 3 months prior to interview), 2008 and 2009

Purchasing Goods Online

Table 2.10: Those Who Had Ever Bought or Ordered Goods Online by Sex and Age (% of adults who had used the Internet during the 3 months prior to interview), 2007-2009

Most Common Online Purchases

Table 2.11: Products Bought or Ordered Online in the Previous 12 Months by Sex (% of adults who had used the Internet during the 3 months prior to interview), 2009

COMPETITIVE STRUCTURE

The Leading Web Brands

Table 2.12: The Top Ten Web Brands by Share of UK Internet-Related Time (%), April 2009

Online Advertising Agencies

KEY TRADE ASSOCIATIONS

ABCe

Advertising Standards Authority

Association of Online Publishers

European Interactive Advertising Association

Institute of Practitioners in Advertising

Internet Advertising Bureau

IAB Europe

Internet Advertising Sales House

MARKET FORECASTS

3. Market Analysis

MARKET SIZE

Table 3.1: UK Internet Advertising Expenditure (pounds m), Years Ending December 2004-2008

By Advertising Format

Table 3.2: UK Internet Advertising Expenditure by Format (pounds m and %), Years Ending December 2006-2008

By Industry

Table 3.3: UK Display Internet Advertising Expenditure by Industry (% of revenues), First and Second Halves 2008

FACTORS INFLUENCING MARKET GROWTH

Online Audience

Access to Broadband

Cost of Broadband

Accountability

Growth in E-Commerce

Advertising Networks

Catch-Up Television

Social Networking Websites

Growth of New Display Formats

Internet Users Spending More Time Online

Table 3.4: The Top Ten Web Brands by Total UK Internet-Related Time (million minutes), April 2008 and April 2009

Table 3.5: The Top Ten Web Brands by Share of UK Internet-Related Time (%), April 2008 and April 2009

4. An International Perspective

THE TOTAL ADVERTISING MARKET

Table 4.1: Global Advertising Expenditure by Region ($bn), 2007-2011

Table 4.2: Global Advertising Expenditure by Medium ($bn), 2007-2011

INTERNET USAGE

Table 4.3: World Population and Internet Usage by Region (million and %), 30th September 2009

The EU

Table 4.4: Population and Internet Usage — the EU27 and the Rest of the World (million and %), 30th September 2009

Table 4.5: Internet Usage in the EU27 by Country (million and %), 30th September 2009

LEADING INTERNET ADVERTISING MARKETS

The US

Table 4.6: Internet Advertising Revenues in the US ($m), 2004-2008

Table 4.7: Internet Advertising Revenues in the US — Share of the Top 10, Top 25 and Top 50 Companies (%), Fourth Quarter 2007 and Fourth Quarter 2008

By Advertising Format

Table 4.8: Internet Advertising Revenues in the US by Format ($bn and %), 2007 and 2008

By Industry

Table 4.9: Internet Advertising Revenues in the US by Major Industry Category (%), 2007 and 2008

Europe

EIAA Mediascope Europe 2008

Table 4.10: Proportion of European Internet Users Who Are Online Every Day by Country (%), 2008

Table 4.11: Average Number of Items Bought Online Over a 6-Month Period by European Country, 2007 and 2008

Japan

Table 4.12: Advertising Expenditure in Japan by Medium (yen bn), 2006-2008

5. PEST Analysis

POLITICAL FACTORS

European Commission Launches Privacy Case Against UK

OFT Launches Probe into 'Potentially Misleading' Advertising

Good-Practice Principles for Behavioural Advertising

UK Consumers Get One-Stop 'Opt Out' for Targeted Advertising

ECONOMIC FACTORS

Digital Britain

Government Plans to Roll Out 2Mbps Broadband Across the UK

Online to Rescue Britain's Retail Sector from Recession

Facebook Brings in Nielsen to Increase Brand Expenditure

AOP Content & Trends Census 2009

Readers Likely to Choose Free News Sources

SOCIAL FACTORS

Attitudes Among Those Without Internet Access

European Internet Trends of Today and Tomorrow

Consumers Will Watch Advertising in Return for Free Content

Criminals Increase Their Attacks on Social Networking Sites

Google Launches Behavioural Targeted Advertising

TECHNOLOGICAL FACTORS

Google Launches Display Advertising Exchange

UKOM and Nielsen to Launch 'BARB' for Online

Ofcom Reveals UK's Real Broadband Speeds

6. Consumer Dynamics

OVERVIEW

Table 6.1: Internet Access and Attitudes Towards Online Advertising (% of all respondents and % of respondents who had accessed the Internet in the previous 12 months), May 2008 and September 2009

INTERNET ACCESS

Access to the Internet in the Previous 12 Months

Table 6.2: Access to the Internet in the Previous 12 Months (% of respondents), September 2009

Access to the Internet via Broadband

Table 6.3: Access to the Internet via Broadband (% of respondents who had accessed the Internet in the previous 12 months), September 2009

LOCATION OF INTERNET ACCESS

Table 6.4: Location of Internet Access (% of respondents who had accessed the Internet in the previous 12 months), September 2009

FREQUENCY OF INTERNET ACCESS

Table 6.5: Frequency of Internet Access (% of respondents who had accessed the Internet in the previous 12 months), September 2009

INTERNET SHOPPING

Table 6.6: Attitudes Towards Internet Shopping (% of respondents who had accessed the Internet in the previous 12 months), September 2009

INTERNET ADVERTISING

Table 6.7: Attitudes Towards Internet Advertising (% of respondents who had accessed the Internet in the previous 12 months), September 2009

ADVERTISING OF WEBSITES IN OTHER MEDIA

Table 6.8: Visiting Websites as a Result of Advertising or Information in Other Media (% of respondents who had accessed the Internet in the previous 12 months), September 2009

OTHER FACTORS INFLUENCING CONSUMER ATTITUDES

Table 6.9: Other Factors Influencing Consumer Attitudes Towards Internet Advertising (% of respondents who had accessed the Internet in the previous 12 months), September 2009

7. Company Profiles

INTRODUCTION

AEGIS MEDIA LTD

Table 7.1 Financial Results for Aegis Media Ltd (pounds 000 and %), Years Ending 31st December 2005-2007

EMC CONSULTING (UK) LTD

Table 7.2: Financial Results for EMC Consulting (UK) Ltd (pounds 000 and %), Years Ending 31st December 2005-2007

I-LEVEL LTD

Table 7.3: Financial Results for i-level Ltd (pounds 000 and %), 52 Weeks Ending 31st March 2006 and 31st March 2007, and 57 Weeks Ending 30th April 2008

LBI LTD

Table 7.4: Financial Results for LBi Ltd (pounds 000 and %), Years Ending 31st December 2006-2008

POKE LONDON LTD

Table 7.5: Financial Results for Poke London Ltd (pounds 000 and %), Years Ending 31st December 2006-2008

PROFERO LTD

Table 7.6: Financial Results for Profero Ltd (pounds 000 and %), Years Ending 31st March 2006-2008

TRIBAL DDB CIS UK LTD

TWENTYSIX LONDON LTD

Table 7.7: Financial Results for Twentysix London Ltd (pounds 000 and %), Years Ending 28th February 2007, 29th February 2008 and 28th February 2009

8. The Future

INTRODUCTION

UK Advertising Expenditure Expected to Fall in 2009

IPA/BDO Bellwether Report

Advertising Expenditure in the First Half of 2009

Table 8.1: The UK Advertising Market by Mainstream Advertising Medium (% and pounds bn), First Half 2008 and 2009

By Advertising Format

Table 8.2: UK Internet Advertising Expenditure by Format (pounds m and %), First Half 2008 and 2009

FORECASTS 2009 TO 2013

Table 8.3: Forecast UK Internet Advertising Expenditure (pounds m), Years Ending December 2009-2013

LONG-TERM TRENDS

9. Further Sources

Associations

General Sources

Government Sources

Other Sources

Key Note Sources

Understanding TGI Data

Number, Profile, Penetration

Social Grade

Standard Region

Key Note Research

The Key Note Range of Reports

To order this report:

Advertising Industry: Internet Advertising Market- 2010 Edition

More  Market Research Report

Nicolas Bombourg

Reportlinker

Email: nbo@reportlinker.com

US: (805)652-2626

Intl: +1 805-652-2626


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