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Digital Strategy Consulting

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

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In 'Digital Europe' we track the growth of online advertising spend across the majority of European markets. Discover the countries in which online has reached critical mass, and those where it's yet to go mainstream. Search engines are playing a key role.
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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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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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Jim Sterne, 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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More records are set to be broken: in these couple of weeks more money will be spent online than ever before as the e-retail industry crosses yet another threshold. 2006 is rightfully recognised as a record-setting year for digital advertising and marketing but here at Digital we're forecasting that the biggest rises in real terms are all yet to come.

In this month's Intelligence we also report on the UK's world-class online advertising market, the increasing use of multi-platform communications suppliers and the latest blogging stats.

Best regards and season's greetings from all here at Digital,

Danny Meadows-Klue
Founder and Chief Executive
Digital Strategy Consulting


Per-capita search advertising adspend twice as high in UK than in US
Total UK revenues from search marketing are expected to reach £1.26 billion (US$2.5 billion) in 2006 according to E-Consultancy, writes eMarketer. When compared to the latest US market predictions from eMarketer ($6.8bn in 2006) and taking into account each country's total online population (180m in the US to 30m in the UK), the UK's search advertising market is proportionately twice as large per-capita than that of the US.
Confidence in the sector is further demonstrated by a new survey from Atlas Solutions. According to respondents search advertising is the online marketing medium most likely to grow during the next year.
From eMarketer:, 05/12/2006


Source: E-consultancy

Atlas Solutions:
Atlas Solutions

UK home to world's most successful online advertising market
A new study from ZenithOptimedia shows that the UK has the world's most developed online advertising sector, writes ENN. 13.5% of British adspend went on internet advertising this year, and by 2009 ZenithOptimedia predicts that the proportion could rise to 21.5%.
Globally online advertising is predicted to rise 28.2% during 2007 against 3.9% for other forms of media. Online's share of total advertising is set to reach 8.6% in 2009 from 5.8% in 2006. In relation to other media, online adspend will overtake outdoor advertising this year and is on course to overtake spending on radio advertising by 2009.
From ENN:, 06/12/2006

Global advertising expenditure by medium

Source: ZenithOptimedia

Internet expenditure by type

Source: ZenithOptimedia

UK online advertising network market doubles in size to £120m
The UK's online advertising network market has grown from £60m in 2005 to £120m this year, reports in its new Online Advertising Networks Buyer's Guide. Ad network spending for 2006 is expected to take as much as 25% of total online display adspend (up from 19% in 2005). According to the report, spending on ad networks equated to about 6% of the UK's £2bn total online adspend. predicts that ad network growth will continue as the use of behavioural targeting becomes more widespread.
From, 06/12/2006


Online sales break the £3bn barrier
Online monthly sales in the UK went past £3bn for the first time in November according to new figures from the Interactive Media in Retail Group (IMRG). IMRG's data found that £3,260,000,000 was spent online during the month, averaging at £4.57m per hour a 44.7% year on year increase. Online sales were over £0.5bn higher than in October when the IMRG recorded expenditure of £2,729bn. The average monthly increase for the first ten months of 2006 was £50m.
From IMRG:, 14/12/2006


Women eclipse men shopping online for Christmas in UK
New figures from Nielsen//NetRatings show that British women are 38% more likely than men to buy a Christmas present online and 55% more likely to carry out as much of their Christmas shopping as possible through the internet, writes Netimperitive. Women will not only spend more online than men shopping for Christmas gifts (£240 against £233) - they are also expected to spend more in total on Christmas presents this year (£440 against £424). In total British consumers will spend 55% of all gift spending online this year (equal to £237 online against £197 in traditional retail outlets).
Futher figures show that 44% of internet users research most of their Christmas gifts online before making a purchase.
From Netimperitive:, 30/11/2006

92.5m head online to shop during holiday season in US
eMarketer's latest figures predict that 92.5m US consumers will shop online during the Christmas period this year, spending on average $263 each (with $205 going on actual holiday purchases). In total, US e-commerce sales for the year are expected to reach $108bn (excluding travel and event ticket purchases), of which 22% will come from sales made during the holiday season. Online consumers will each spend an average of $1,055 through internet retailers during 2006.
Figures from a poll conducted by Compete in November suggest that 13% of online shoppers will spend their entire Christmas gift budgets online, while a further 31% plan to spend over half their gift budgets via the internet. Vendio report that 23% of online shoppers intend to spend at least $400 online during the Christmas period.
From eMarketer:, 12/12/2006






ValueClick buys up
ValueClick has bought the online shopping comparison site for $13.3m (£6.7m), writes Brand Republic. attracts over 2m unique visitors to its portfolio of 27 websites which include, and ValueClick intends to integrate the site into its European range of online marketing services. is ValueClick's second acquisition in Europe following its purchase of PriceRunner in 2004.
From Brand Republic:, 04/12/2006

Bigmouth Media merge with Global Media
UK-based search marketing firm Bigmouth Media is to merge with German search agency Global Media, writes Brand Republic. The £150m merger will create the world's largest independent search marketing company, with offices in Europe, the US and Asia. The firm has over 300 customers which include Hilton, British Airways, AOL and Barclays. Search marketing now represents half of all British internet advertising.
From Brand Republic:, 04/12/2006
Bigmouth Media:

Nielsen//NetRatings increasing its internet audience measurement panel
Nielsen//NetRatings is to increase its internet audience measurement panel to 50,0000 internet users in the UK, writes Brand Republic. In addition the firm is going to triple the number of domains it tracks to 8,300 and expand its brand-based audience demographic reporting capacities to 2,000 (a five times increase). The changes will help Nielsen//NetRatings offer clients improved market coverage and enable them to precisely track consumer opinions on individual brands.
Brand Republic:, 11/12/2006


Special feature - Digital teens

Digital teens never unplug
72 hours a week: thatís the staggeringly large amount of time US teens are spending with using electronic media. Add up their web, email, iTunes, TV, computer games and mobile phone time and thereís not much else left. The report by Harrison Group also revealed that more than two thirds had created profiles on social networking sites like MySpace.
From, 07/12/2006
Harrison Group:

Pre-teens Bluetooth bonanza
A third of UK kids between eight and thirteen have swapped music via Bluetooth on their mobiles. The youngest generation of mobile users are quick to switch to the internet with 29% using it on their phones once a month (10% once a week and 7% daily).
From New Media Age:, 06/12/2006


British consumers cut costs with triple play services
Ofcom's latest International Communications Market report shows that growing numbers of British users are now subscribing to double or triple play services, writes By Q4 2005, 35% of UK households were subscribing to at least two services from a single provider (against 29% six months earlier). According to the report, increased take-up of broadband services is driving momentum. In the UK, 39% of households now have broadband access, compared to 38% in both the US and France and 28% in Germany. The report also found that households which heavily use communications services made the greatest savings. A British household with two mobiles, high levels of phone usage, broadband access and premium subscription TV services typically pays £188/month compared to £201/month in Italy and £247/month in the US.
From, 01/12/2006

Four million active bloggers in Europe
Four million Europeans now actively write blogs according to a new report from Forrester Research, writes Netimperitive. The figure equates to 3% of all active European internet users. Blogging is most popular in southern Europe, with 57% of the "blogosphere" living in either France, Italy or Spain. France has the highest population with nearly 1m active bloggers. On average active bloggers tend to be young, early adopters of new technologies and heavy internet users (spending an average 16 active hours per week online).
For the report Forrester questioned 7,377 online consumers in the UK, France, Germany, Italy, Spain, Holland and Sweden.
From Netimperitive:, 12/12/2006
Forrester Research:


Channel 4 launches video download service
Channel 4 has launched its 4oD video on demand download service, writes Brand Republic. The service gives users online access to Channel 4 programmes for up to 30 days after broadcast. The service includes all original Channel 4 programming commissioned since June in addition to classic TV shows and some high-profile imported titles. Users can rent titles for between 99p and £1.99 which are then erased 48 hours after the first viewing. Channel 4 intends to provide monthly subscription packages from February.
From Brand Republic:, 06/12/2006


Monthly internet usage statistics for France, November 2006

Sessions/Visits Per Person 58
Domains Visited Per Person 102
PC Time Per Person 57:58:51
Duration of a Web Page Viewed 00:00:42
Active Digital Media Universe 23,564,521
Current Digital Media Universe Estimate 30,837,592

Source: Nielsen/NetRatings Home/Work Panel monthly statistics

Monthly top ten French parent companies for November 2006

Property Name
Unique Audience
Reach %
Time Per Person
Microsoft 19,219 81.56% 03:30:11
Google 18,814 79.84% 00:50:34
France Telecom 15,660 66.46% 01:30:40
Iliad 13,568 57.58% 00:33:50
Yahoo! 11,019 46.76% 00:50:52
PagesJaunes 11,000 46.68% 00:20:31
PPR 10,733 45.55% 00:26:19
eBay 10,531 44.69% 01:31:31
Benchmark Group 7,539 31.99% 00:11:19
Wikipedia 6,926



Source: Nielsen/NetRatings Home/Work Panel monthly statistics

Worldwide Active Internet Universe, October 2006

Country September 2006 October 2006 Growth (%) Difference
Australia 10,586,123 10,438,386 -1.40% 147,737
Brazil 13,639,042  13,312,588 -2.39% -326,454
Switzerland  3,757,992  3,783,945 0.69% 25,953
Germany  32,981,612 33,627,808 1.96% 646,196
Spain  12,812,106  12,714,303 -0.76% -97,804
France 19,291,466  19,443,777 0.79% 152,310
Italy  17,015,825  16,959,123 -0.33% -56,703
Japan  43,799,569  44,182,811 0.87% 383,242
UK  24,132,491  24,476,339 1.42% 343,849
US 144,869,198  146,544,990


TOTAL 322,885,426  325,484,069



Source: Nielsen/NetRatings 2006

Top 10 popular websites in the UK, November 2006



Market share





















This list features the most popular websites based on UK Internet usage for November, 2006, ranked by market share of visits across all Hitwise industries.

Source: Hitwise Datacentre, November 2006, based on market share of visits

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