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Digital Strategy Consulting

Digital Intelligence
The monthly review of new research and developments in digital marketing
June 06

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Bright Ideas
In 'Bright ideas for blue sky thinkers' we track some of the new innovations in digital marketing, exploring how and when they can be harnessed. Search engine advertising always features strongly in these innovation reports.
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Search for Publishers
In this report we investigate the issue around search partnerships and outline the key questions every publisher must face. Failing to act is acting to fail.
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The godfather of web analytics
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Digital Intelligence
Digital Intelligence is a research briefing developed and published by Digital Strategy Consulting Ltd. in association with our strategic partners. Every month there's a new edition and you can also read them online.


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Online advertising will overtake newspaper advertising within a year. In April when at Digital we ran the analysis of online adspend we concluded that in the UK online advertising would reach the same level as national newspapers by November, and that search engine advertising's massive growth was pushing it ahead of Consumer magazines and Outdoor, as well as the radio industry. However many people were sceptical. The internet just can't be that big!

Oh yes it can. In the last few weeks a rush of other forecasts and statements from advertising agencies are confirming what we predicted, and here at the Online Marketing Europe congress in Spain there is a palpable sense that the tipping point is not just in Scandinavia, France, the UK and Germany, but it's now happening across the European markets. If you couldnŽt join us in Spain for our workshops, then email me back and IŽll mail you a digest of some of the key points later in the month.

Best regards from all here at Digital,




Danny Meadows-Klue
Founder and Chief Executive
Digital Strategy Consulting




Advertising

€4.6bn in European online adspend
Digital's biannual tracker of online advertising spend confirms that the European online ad market is worth at least €4.6bn. The UK is accounting for more than 40% of all spend and together with France and Germany the "big three" make up more than 80% of Europe's market. The massive growth in search remains the biggest driver but online display and classifieds are also growing faster than any other advertising channel.
Digital: http://www.digitalstrategyconsulting.com



Online marketing takes greater share of budgets
A new survey from the Online Marketing Show (OMS) reveals that over 40% of marketers now spend 26% or more of their budgets online, reports Netimperitive. According to the survey the top 14% of spenders now spend 75% of their budgets online. In addition, 40% of those questioned intend to use a digital agency in the coming year.
From Netimperitive: http://www.netimperative.com
, 05/06/2006
Online Marketing Show:
http://www.onlinemarketingshow.co.uk


Online adspend set to overtake newspaper advertising
A new report from GroupM predicts that online advertising will clearly overtake newspaper advertising by the end of 2006, writes eMarketer. The "This Year Next Year UK" report expects online to account for 13.3% of the total UK market against newspaper advertising's 13.2% share. Non-internet spending is forecast to fall 2% during 2006. The total UK advertising market will reach £12.7bn in 2007 from £12.2bn in 2006.
From eMarketer:
http://www.emarketer.com, 07/06/2006
GroupM:
http://www.groupm.com



E-commerce

Online sales set to rise 20% in US
The latest "State of Retailing Online" study from Shop.org, conducted by Forrester Research, expects US online sales to grow 20% this year, rising to $211.4bn, writes ClickZ. Online sales grew 25% in 2005 to reach $176.4bn. The top categories identified by the report include travel ($73.4bn); computer hardware and software ($16.8bn); cars and auto parts ($15.9bn); and clothes, accessories and footwear ($13.8bn). Excluding travel, total sales will reach $138bn this year (a 22% increase).
From ClickZ: http://www.clickz.com, 05/06/2006
Forrester:
http://www.forrester.com

10% of British retail sales now take place online
The latest predictions from Interactive Media In Retail Group (IMRG) estimate that online retail spending in the UK will reach £30bn this year, writes The Times. The figure represents a 56% increase on 2005's £19.2bn. An additional £20bn will also be spent online in 2006 on non-traditional retail sectors such as gambling and financial services. £2.6bn was spent by online shoppers during April, at an average of £3.6m per hour. Amazon UK was the leading online retailer, closely followed by Dell.
From The Times: http://business.timesonline.co.uk, 24/05/2006
IMRG:
http://www.imrg.org

20% of European surfers buy music online
Insight Consulting have found that one in five European internet users has paid to download music, writes ENN. Users from Germany (42%), Denmark (39%) and the UK (36%) are the most likely to have paid for downloads. iTunes remains the most popular online destination in Europe for downloading music. The research polled 80,000 internet users in Belgium, the Netherlands, the UK, Germany, France, Sweden, Denmark, Switzerland, Italy and Spain.
From ENN: http://www.electricnews.net, 08/06/2006
Insight Consulting: http://www.insight.co.uk


Companies

World Cup heads online
New figures from comScore reveal that the official FIFA World Cup site hosted by Yahoo! received 5.7m unique visitors in April, up from 4.2m in March, writes eMarketer. 51% of visitors came from Europe (nearly 3m), followed by Asia Pacific (17%), Latin America (12%) and North America (10%). Apart from English, other languages including German, Spanish, Japanese, French, Portuguese and Italian all received sizeable levels of traffic in April.
From eMarketer: http://www.emarketer.com, 09/06/2006
FIFA
World Cup: http://fifaworldcup.yahoo.com

Yahoo! and eBay join forces in advertising deal
Yahoo! and eBay have agreed to work together to integrate a number of their products and services, writes Brand Republic. Under the deal Yahoo! will become the exclusive third-party ad provider on eBay.com, and eBay will also display some of Yahoo's paid search results. The two companies will also work together to make more current eBay listings appear in Yahoo!'s search results. In addition, Yahoo! will integrate Paypal's online payment system into its services and online wallet and Yahoo! branding and functionality will be added to the eBay toolbar. The two companies will also work together on developing "click-to-call" adverts which allow consumers to contact advertisers directly. Yahoo! will also be given direct access to eBay's membership base.
From Brand Republic: http://www.brandrepublic.com, 25/05/2006

MySpace looks for search partner
MySpace is in talks with both Google and Microsoft in order to secure a commercial search partner, writes the Financial Times. The social networking site, bought last year for $580m (£310m) by News Corp, is looking for a partner to supply internet searches on its pages in addition to adverts tied to the results. MySpace has almost 80m registered users.
From The Financial Times: http://www.ft.com, 23/05/2006
Google UK: http://www.google.co.uk

Access

Worldwide broadband subscriptions set to double by 2010
Research from IDC predict that global broadband subscriptions will nearly double from 205m in 2005 to 400m in 2010, writes Reuters. Revenues from global broadband services will also rise to reach 122.4bn in the same period. 2005 saw broadband connections overtake dial-up as the primary means used by households to go online.
From Reuters: http://today.reuters.co.uk, 12/06/2006
IDC:
http://www.idc.com

UK ranked as Europe's "most digital" market
New data just out from Informa Telecoms & Media has ranked the UK number one in Europe for digital content usage, write eMarketer. Informa used its "Converging Media" index to rate countries based on their consumption of digital services including broadband, digital TV and mobile-broadband (3G). The UK came top with 30.5 ahead of Finland (23.1) and Italy. The UK now boasts nearly 17m digital TV users, while the 3G market grew 23% to 4.8m subscribers during Q4 2005.
From eMarketer: http://www.emarketer.com, 12/06/2006
Informa Telecoms & Media: http://www.informatm.com

Global online population passes 1bn
eMarketer's latest "Worldwide Online Access: 2004-2010" study shows that 1bn people had internet access by the end of last year. 845m people were regular users. Global household broadband connections grew 37% from 142m in 2004 to 195m at the end of 2005. The US remains the nation with the largest online population at 175.4m, followed by China with 111m.
A further report from Harris Interactive estimates the total US online population at 172m and calculates that 77% of US adults are now online.
eMarketer: http://www.emarketer.com, 18/05/2006



Source: eMarketer
eMarketer: http://www.emarketer.com

Wireless

Text messaging continues to thrive
UK phone users are still in love with their mobile phones: on average 104m text messages were sent every day during April, writes ENN. The latest data from the Mobile Data Association (MDA) found that 3.13bn text messages were sent during the month, just short of the all time record 3.19bn messages sent in March. Year-on-year monthly SMS usage grew 24%.
From ENN: http://www.electricnews.net, 25/05/2006
MDA:
http://www.themda.org

Broadcasting

BBC radio podcasts break new records
The BBC's podcasting trial shows no sign of slowing down: 3.9m programmes were downloaded in April, the second monthly increase of over 1m downloads. Radio 1 continued to storm ahead during the month with a record 1.1m unique users per week. BBC 6 Music also broke its daily unique user record attracting 55,000 visitors in 24 hours on 30 March.
BBC: http://www.bbc.co.uk, 30/05/2006

Statistics

Monthly internet usage statistics for France, April 2006


Sessions/Visits Per Person 40
Domains Visited Per Person 87
PC Time Per Person 35:22:50
Duration of a Web Page Viewed 00:00:39
Active Digital Media Universe 17,907,014
Current Digital Media Universe Estimate 23,808,022


Source: Nielsen/NetRatings Home/Work Panel monthly statistics
Nielsen/NetRatings: http://www.nielsen-netratings.com


Monthly top ten French parent companies for April 2006

Property Name
Unique Audience
(000)
Reach %
Time Per Person
Microsoft 16,643 80.48% 03:36:06
Google 15,682 75.84% 00:44:07
Wanadoo 13,257 64.11% 01:22:39
Iliad 11,918 57.63% 00:28:41
Yahoo! 9,870 47.73% 00:47:48
PagesJaunes 9,535 46.11% 00:19:09
PPR 8,030 38.83% 00:10:23
eBay 7,828 37.85% 01:32:17
Time Warner 5,949 28.77% 03:27:10
Lycos Europe 5,812

28.10%

00:12:01

Source: Nielsen/NetRatings Home/Work Panel monthly statistics
Nielsen/NetRatings:
http://www.nielsen-netratings.com

Active Home Internet Users by Country, March and April 2006

Country
March 2006
April 2006
Change (%)
One-month change
Australia 10,296,745 10,222,090 -0.73 -74,655
Brazil 14,106,651 13,431,424 -4.79 -675,226
France 17,769,232 17,907,014 0.78 137,782
Germany 32,954,008 32,112,698 -2.55 -841,310
Italy 17,101,383 17,280,253 1.05 178,870
Japan 40,774,175 41,139,368 0.90 365,193
Spain 12,128,204 11,715,596 -3.40 -412,608
Switzerland 3,726,726 3,824,662 2.63 97,936
United Kingdom 24,028,103 24,200,841 0.72 172,738
United States 144,358,901 143,596,769 -0.53 -762,132
TOTAL 317,244,127 315,430,716 -0.57 -1,813,411

Source: Nielsen/NetRatings Home/Work Panel monthly statistics
Nielsen/NetRatings: http://www.nielsen-netratings.com


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