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On-line ad spend to reach USD7.6bn
Friday, August 24 2001
by Andrew McLindon

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On-line advertising is holding its own and will continue to grow steadily over the next several years, according to a report from eMarketer.

EMarketer forecasts that global on-line ad spending will reach USD7.6 billion by the end of 2001, an increase of seven percent from the USD7.1 billion spent in 2000. In 2002, the figure will be USD10.3 billion and reach USD23 billion by 2005, predicts eMarketer.

"The bloom may be off the Internet advertising rose, but we are now entering a period of reality rather than hype," said Jonathan Jackson, eMarketer senior analyst. "Surely no one could seriously expect the explosive growth of on-line advertising to continue unabated. The good news is that marketers are responding to the economic challenges with new techniques and strategies, along with research data to prove their effectiveness."

This positive outlook is echoed by Simon Ferguson, the managing director of Irish on-line advertising network Sales Online. He told Electricnews.Net that he was "bullish" about the prospects for the Irish on-line advertising market in the year ahead. "Although we are coming from a small base, we expect there to be 100 percent growth over the next 12 months in the market here," said Ferguson. Current on-line advertising spend in Ireland is estimated to be around IEP6 million per annum or less than one percent of the total ad spend here.

Ferguson said this huge growth will be due to advertisers becoming more knowledgeable about the benefits of Internet advertising and the move by mainstream brands such as Unilever and Heineken into the area.

EMarketer's Online Advertising Report is based on data from more than 50 research organisations and consultancies. It also found that the cost-per-thousand (CPM) rate for banner ads continues to decline, and that nearly three-quarters of Web advertising space goes unsold. Other findings from the report include the fact that nearly 90 percent of on-line ads are direct-response oriented. The report also noted that the on-line medium constitutes 10 percent of consumers' daily media usage, but only 2.9 percent of media dollars.

Meanwhile, one of the world's largest outdoor media groups, JCDecaux, has launched a new Web site created specifically for the Irish market. The site, http://www.jcdecaux.ie, is aimed primarily at media and creative agencies, and advertisers.

Features of the site include Preview, which allows advertisers to view their work as it would appear "on the street". These images can then be e-mailed to clients. Site visitors can also use the Review function, which is a research tool that the company said enables agencies and advertisers to monitor the effectiveness of their advertising strategies via research carried out by the media group.

Further details about the report can be found at http://www.emarketer.com.

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