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


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, href="http://www.jcdecaux.ie">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 href="http://www.emarketer.com">http://www.emarketer.com.