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E-advertising continues to rebound
Wednesday, May 22 2002
by Ciaran Buckley

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European on-line advertising will grow to EUR6.4 billion by 2007, constituting 6.3 percent of all advertising, according to a new report.

The predictions are contained in a report called "Online Advertising Picks Up Again," released by US research company Forrester on Tuesday. Forrester interviewed 30 marketers across 17 nations in Europe, whose overall marketing budgets averaged EUR32 million per year.

The report predicts that the UK and Germany will account for almost 50 percent of Web advertising spend in Europe, while Sweden and Norway will outpace all other countries in relative terms devoting 10 percent of ad budgets to the Web in 2007.

"By 2007, Norwegian marketers will spend EUR36 per capita on Web ads, compared with EUR9 today," predicted Forrester Analyst Diana Janssen. The report also found that 30 percent of marketers will not increase their proportion of spend on Web banner ads. Instead, 33 percent plan to boost e-mail marketing initiatives.

Alongside the growth in Internet advertising in general, the survey also claims that mobile and interactive digital television (iDTV) advertising will drive the increases in revenues.

According to Forrester, most on-line ad budgets go straight to PC-based campaigns currently, and only 22 percent of Forrester's respondents currently advertise via mobile or iDTV. However by 2005, interviewees plan to spend an average of 15 percent of their digital marketing budget on new devices.

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