In this summer's edition we track why rain on the high
street accelerated the growth of online retail, how China emerged as the
country with the largest internet population, Russia as Europe's fastest
growing digital nation, and the BBC iPlayer continued to enjoy success
as it crosses tipping points in new markets with new features.
The team here at Digital for years have said 2009 would be the year
mobile advertising really takes off, and several new forecasts are
aligning with us: we're expecting to see big rises from the acceleration
now underway. And if you ever thought you were spending too much time
online, then spare a thought for "extreme gamers" who according to new
research are clocking up more than 45 hours on the web every week.
Best from all @ Digital

Danny Meadows-Klue
Founder and Chief Executive
Digital Strategy Consulting
|
|
Advertising |
Online adspend now greater than mainstream TV
The summer report from the UK government's Ofcom
group revealed a stark picture of a nation migrating into the digital
networked society. The latest figures show that online adspend in the
UK overtook spending across the mainstream analogue channels.
According to Ofcom, online adspend grew 40% during 2007 to reach
£2.8bn, or 19% of all UK advertising. TV advertising however remained
static at £3.5bn with the mainstream commercial channels (ITV1,
Channel 4, S4C and five) taking £2.4bn or 67% of all UK adspend (from
83% in 2002).
In addition the report revealed increased leaps in use of the web and
laptops as ways to view TV. More than a third of 25-44s often go
online while watching TV. Since we started Digital Intelligence in
2000 we've tracked hundreds of technology shifts, and in the UK we've
argued that the arrival of wireless broadband at home would create a
step change in viewing behaviour. This latest research explains the
nature of shifts in consumer use of media, but should be seen as
simply a snapshot of what continues to be a journey not yet finished.
From The Guardian:
http://www.guardian.co.uk, 14/08/2008
Ofcom: http://www.ofcom.org.uk
Advertising spend by medium

Source: Advertising Association statistics published by
www.WARC.com
Share of advertising spend by medium

Source: Advertising Association statistics published by
www.WARC.com
Total online TV revenue

Source: Advertising Association statistics published by
www.WARC.com
Frequency of using other media while watching TV

Source: Ofcom
Ofcom:
http://www.ofcom.org.uk Online ads more effective on branded websites
Online ads on branded sites consistently perform
above those on other sites, writes Netimperative. Research from the
US-based Online Publishers Association (OPA) has found that
sponsorships on branded content sites perform 36% above those on
portals and 42% above Dynamic Logic's MarketNorms average. Similarly,
brand favourability towards online ads is 29% higher on branded
content sites than the MarketNorms average. Consumers are also 20%
more likely to purchase following advertising on branded content
websites.
From
Netimperative:
http://www.netimperative.com, 01/08/2008
OPA:
http://www.online-publishers.org
Sponsorships on branded content sites are 36% more effective than on
portals

Source: Dynamic Logic's MarketNormscampaigns from the last 3 years
through Q4 2007, OPA through Q12008OPA N=1,185 campaigns, n=883,688
respondents; MarketNorms2,231 /3,995,139 ; Portals 1,193/1,301,451
OPA:
http://www.online-publishers.org
Ads
on branded content sites significantly more likely to increase message
association and purchase intent for affluent audiences

OPA averages are significantly (at 90% level) different than
MarketNormsfor all metrics except Awareness and Brand
Favourability +13%
Source: Dynamic Logic's MarketNormscampaigns from the
last 3 years through Q4 2007, OPA through Q12008OPA 75k+ N=585
campaigns, n=215,555respondents; MarketNorms75k + 1,515 /824,909
OPA:
http://www.online-publishers.org
Video ads placed on content sites significantly raise brand awareness
and favourability

OPA
averages are significantly (at 90% level) different than MarketNormsin
all metrics except Purchase Intent
Source: Dynamic Logic's
MarketNormscampaigns from the last 3 years through Q4 2007 ; OPA
through Q1 2008 OPA Video N=32 campaigns, n=19,979 respondents;
MarketNormsVideo 157/205,677
OPA:
http://www.online-publishers.org
88% of UK searches looking for branded terms
New research from Hitwise shows that UK internet
users are moving away from generic search terms such as "cheap
flights" in favour of brand names and terms. In May 2008, 88% of UK
searches for the 2,000 most popular search terms were for branded
terms - a 65% year-on-year increase. All of the top 10 most popular
search terms were brands. The most searched-for term during the month
was "facebook", accounting for 1 in every 72 searches. The top ten
list also featured four other social media search terms: "bebo" (2nd
place), "youtube" (4th), "you tube" (5th), and "myspace" (6th).
Hitwise:
http://www.hitwise.co.uk, 14/08/2008
Branded search volume as a percentage of searches for the top 2,000 UK
search terms

Source: Hitwise
Hitwise:
http://www.hitwise.co.uk
Top
10 search terms in UK, May 2008 and 2007

Source: Hitwise
Hitwise:
http://www.hitwise.co.uk |
 |
|
Companies |
Guardian.co.uk holds on to top spot
The latest figures from the Audit Bureau of
Circulations Electronic (ABCe) show that traffic to the Guardian.co.uk
website grew 28% year-on-year in July to reach a record 20,622,063
unique users (up 1% on June 2008). Other sites also had record months:
traffic to the Times Online grew 56% year-on-year to reach 16,391,514
unique users, while Sun Online achieved 15,972,490 unique users with
year-on-year growth of 69%. The three sites also saw record levels for
page impressions with Guardian.co.uk registering 186,430,603 page
views, Times Online registering 123,978,303 and Sun Online registering
292,031,461.
The Guardian:
http://www.guardian.co.uk, 21/08/2008
ABCe:
http://www.abce.org.uk |
 |
|
E-commerce |
Online spending in UK rises 11.3% in July
The latest e-retail sales index from IMRG and
Capgemini shows that online retail grew 11.3% in July from the
previous month, writes vnunet.com. Total online sales for the month
reached £4.8bn, equivalent to £79/person in the UK, as consumers
avoided the rain and used the internet to look for deals and save
money. Data from the British Retail Consortium shows that high street
sales were down 0.9% during the same period. Clothing, footwear and
accessories was the fastest growing online category in July, rising
22.8%.
The figures echoed the latest Experian National Retail FootFall Index
which predicts that the next twelve months will be the slowest period
for retailers since the early 1990s.
From vnunet.com:
http://www.vnunet.com, 20/08/2008
IMRG: http://www.imrg.org |
 |
|
Trends |
Two-thirds of British homes online
Nearly 16.5m UK households are now connected to
the internet according to the latest figures from the Office for
National Statistics (ONS), reports the BBC. The figure represents a
year-on-year increase of 1.2m homes and represents almost two-thirds
of all UK households. According to the figures over two-thirds of
British adults now go online every day. Education is also a defining
factor: 93% of adults aged under 70 with university degrees or similar
qualifications have internet access at home. In comparison only 56% of
people without formal qualifications use the internet. Further recent
figures from Ofcom show that use of PCs and laptops has grown fourfold
since 2002.
From The BBC:
http://news.bbc.co.uk, 26/08/2008
ONS:
http://www.statistics.gov.uk
Index of internet connectivity

Source:
ONS
ONS:
http://www.statistics.gov.uk Media multi-tasking: now the norm
The summer report from Ofcom report has
quantified the emergence of high levels of multi-tasking between the
TV and other channels and how they have become the norm. TV attention
is now clearly divided as many consumers switch on their mobiles and
their laptops, with the TV acting as background entertainment, getting
only a shrinking portion of their focus. Three quarters of
20-34 year-olds 'regularly' use a mobile while watching TV. The use of
mobiles at home as well as outside also becomes more interesting and
can be tied back to the way personal phone books have now become so
device dependant that many consumers will use their mobile at home or
work for convenience rather than a landline.
From The Guardian:
http://www.guardian.co.uk, 14/08/2008
Ofcom:
http://www.ofcom.org.uk
Social media: growth continues
This summer's news from MySpace confirmed there's
no slowdown in sight to the growing desire for people to build their
own web pages and footprints online, writes MarketingVOX. While
Facebook offers the simple 'plug-and-play' approach to templates, the
more advanced interface of MySpace continues to draw new audience,
clocking up a record 75.2 million unique visitors in the US (July
2008), a leap of over 2 million on the previous month.
From MarketingVOX:
http://www.marketingvox.com, 15/08/2008
MySpace: http://www.myspace.com
China now the world's leading internet nation
China has overtaken the US to become the world's
biggest online market, writes the BBC. New figures from the China
Internet Network Information Center (CNNIC) show that over 253m
Chinese now go online, eclipsing for the first time the 223m people
using the internet in the US. China's online population grew 56% in
the last year although internet penetration currently remains low at
only 19% (against 71% in the US). Analysts predict that growth will
continue at about 18% p.a. to reach 490m in 2012.
From The BBC:
http://news.bbc.co.uk, 28/07/2008
China Internet Network Information Center:
http://www.cnnic.cn/en/index
Growth of netizens in China

Source:
China Internet Network Information Center
China Internet Network Information Center:
http://www.cnnic.cn/en/index
Internet Penetration Rate in China

Source:
China Internet Network Information Center
China Internet Network Information Center:
http://www.cnnic.cn/en/index
Russia has Europe's fastest growing online population
New research from conScore shows that Russia has
the fastest growing internet population in Europe, writes
Netimperative. Year-on-year Russia's online audience grew 27% to reach
17.m people in June this year, followed by France (up 21% to 31.5m),
Spain (up 15% to 16.2m) and Ireland (up 15% to 1.6m). Europe's total
online population grew 8% to reach 241.8m users.
Penetration rates were highest in the Netherlands with 82% of all
over-15 year-olds going online in June, followed by Denmark (77%),
Sweden (76%) and Norway (76%).
The UK remains the leading nation for time spent online at 28.5
hours/person, followed by Spain (25.1 hours/person) and the
Netherlands (23.4 hours/person).
From Netimperative:
http://www.netimperative.com, 28/08/2008
comScore:
http://www.comscore.com
Growth of European internet audiences ranked by year on year growth
rate*
Total unique visitors (000)** age 15+
Home & work locations
June 2008 vs. June 2007

* Rankings based on the 16 individually reportable European countries
in comScore World Metrix. European Internet audience figures are
comprehensive and include visitation from countries that are not
individually reportable.
** Excludes traffic from public computers such as Internet cafes or
access from mobile phones or PDAs.
Source: comScore World Metrix
comScore: http://www.comscore.com
European internet usage overview ranked by penetration of total
country population age 15+*
Total unique visitors (000)** age 15+
Home & work locations
June 2008 vs. June 2007

* Rankings based on the 16 individually reportable European countries
in comScore World Metrix. European Internet audience figures are
comprehensive and include visitation from countries that are not
individually reportable.
** Excludes traffic from public computers such as Internet cafes or
access from mobile phones or PDAs.
*** Geographic population breakdowns supplied by U.S. Census Bureau,
2007.
Source: comScore World Metrix
comScore: http://www.comscore.com
"Extreme Gamers" play games for 45 hours per week
A new study from NPD Group has found that Extreme
Gamers play games for an average 45 hours per week and have bought 24
titles in the past three months. The "Games Segmentation 2008" report
identified 7 gamer segments based on usage, ownership and frequency.
Of the 174m gamers who use PCs, Macs and video game systems 3% are
Extreme Gamers, 9% are Avid PC Gamers, 17% are Console Gamers, 14% are
Online PC Gamers, 15% are Offline PC Gamers, 22% are Young Heavy
Gamers and 20% are Secondary Gamers.
Young Heavy Gamers represent at least 1/3 of any system's owners and
are strong users of portable platforms: 60% of Nintendo DS (NDS) and
PlayStation Portable (PSP) owners are Young Heavy Gamers. Although the
PC is used for gaming more than any specific console, Console Gamers,
Young Heavy Gamers and Extreme Gamers are all more likely to play
games using a console.
NPD Group:
http://www.npd.com, 11/08/2008 |
 |
|
Mobile |
Global mobile adspend to reach $2.4bn in 2009
The latest Wireless Trends Outlook from Strategy
Analytics predicts that global mobile adspend will reach $2.4bn in
2009 up from $1bn this year, writes Cellular-news. The firm predicts
that the increased use of Adobe's Flash and the launch of Nokia's
"Comes with Music" service will both help to further stimulate the
mobile advertising sector.
Similar research from eMarketer goes much further in accounting for
the growing economies of Brazil, Russia, India and China. eMarketer
expects total mobile advertising expenses (including creative, IT and
other related spending costs) to reach $6.44bn in 2009, rising to
$19.15bn in 2012.
From Cellular-news:
http://www.cellular-news.com, 12/08/2008
Strategy Analytics:
http://www.strategyanalytics.com

Source:
Strategy Analytics
Strategy Analytics:
http://www.strategyanalytics.com

Source: eMarketer
eMarketer: http://www.emarketer.com
Global mobile phone sales up 12% in Q2 2008
Worldwide mobile phone sales grew 11.8% during Q2
to reach 305m units according to new figures from Gartner. Sales of
mobile phones in Western Europe reached close to 42m units during the
quarter, up 16% from the previous quarter. However, quarterly
year-on-year sales were down 8.2% as the region reached total mobile
penetration rates of 121.5% for the first six months of the year.
North American sales grew to 44.1m units, up 6.58% year-on-year and
5.3% over the previous quarter.
Gartner predicts that total mobile phone sales will reach 1.28bn units
during 2008.
Gartner:
http://www.gartner.com, 27/08/2008 |
 |
|
Broadcasting |
BBC adds series stacking to iPlayer
The BBC is to expand the selection of episodes
available to watch through its iPlayer service with the implementing
of series staking in September, writes Brand Republic. Individual
episodes of TV programmes will no longer be removed after seven days
but will remain accessible for the entire duration of the series.
Viewers will now be able to start watching a series half-way through
its broadcast schedule and still have time to catch up.
In another move to widen access to the BBC's vast archive BBC
Worldwide intends to launch an ad-supported online music service. The
service will feature both audio and video content from the BBC's radio
and television archives and content will be available as free streams
or paid downloads.
From Brand Republic:
http://www.brandrepublic.com, 26/08/2008
BBC iPlayer:
http://www.bbc.co.uk/iplayer |
 |
|
Statistics |
Monthly internet usage statistics for France, March 2008

Source: Nielsen/NetRatings Home/Work Panel monthly statistics
Nielsen Online:
http://www.nielsen-online.com
Monthly top ten French parent companies for March 2008

Source: Nielsen/NetRatings Home/Work Panel monthly statistics
Nielsen Online:
http://www.nielsen-online.com
Top 10 popular websites in the UK, July 2008

This list features the most popular websites based on
UK Internet usage for July 2008, ranked by market share of visits
across all Hitwise industries.
Source: Hitwise Datacentre, July 2008, based on market share of visits
Hitwise:
http://www.hitwise.co.uk/datacenter
Active Home Internet Users by Country, June 2008

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