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

December 2007

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Digital Strategy Consulting


Your final news download as we wind down and wish you the best for the holidays.

The mince pies and mulled wine are waiting, we're almost finished for the year, but I did want to send you the final newswire to complete your archive. 2007 was a transformative year for the digital media and marketing industries, and having coached marketing teams in more than twenty countries since January, we've seen the pace quicken as the latest ideas from the UK , USA and Scandinavia get picked up in Central America, South East Asia, Africa and the Middle East . In our 'flattened' world the best ideas are only a click away.

Digital Intelligence tracked hundreds of the 'crossing points' in the sector's growth this year and this final edition rounds up some of the strongest evidence about how shoppers have switched to the web, the saturation levels of broadband, and the continued acceleration of key companies. We'd like to say a big thank you to everyone who took part in the Christmas appeal - you can still donate to your favourite charity here - and there's details of our charity here:
http://www.digitalstrategyconsulting.com/about/merrychristmas.

Wishing you a relaxing 'unplugged' Christmas from all of us @ Digital, and the best of health for 2008.


Danny Meadows-Klue
Founder and Chief Executive
Digital Strategy Consulting

 

Industry focus: Online retail

Christmas always sees web commerce leap to new levels, but in the digitally more mature economies of the UK, USA and Scandinavia, there are still sizable leaps on last year. This suggests online retail use is likely to carry on growing as individuals find themselves spending more time online than before. Great news for e-retailers across Europe, Asia and Latin America.

Christmas helps web shopping leap to new heights
The online shopping frenzy reached new heights with the first weekend of December the biggest days for online retail in Western Europe. Around 20m UK users were online that weekend looking for Christmas presents. Ecommerce sites nicknamed the first Monday 'Mega Monday' as shoppers clocked up around £5 billion on food, drink and gifts, raising the total web shopping bill to £15 billion for December.
From The Times: http://www.timesonline.co.uk, 01/12/2007
From eMarketer:
http://www.emarketer.com, 07/12/2007

Online retail site visits: up more than 10%
The switch from high street to web continues apace with visits to online stores up 11% year on year according to ComScore. Back in October UK online shoppers numbered 29m, and European online shoppers topped 160m visits (up 5% year on year). In the UK, cyber shopping visits continued to gain momentum in the last week of by the last week of November UK online store visits were up 34 percent versus the average weekly activity for the two months prior, with Amazon beating Apple to top place on 9% of online store visits. French shopping also leapt an impressive amount - up 27 percent - while the German market started more slowly.
From New Media Age: http://www.nma.co.uk, 04/12/2007
From Netimperative:
http://www.netimperative.com, 13/12/2007

15 hours online shopping per person
UK consumers are spending more time shopping online that almost anyone, recording an average of 15 hours per person this Christmas. New research from Core metrics shows this matches the time they spend on the highstreet, suggesting another of the 'crossing points' Digital's team has been tracking has now been reached. The study also showed how 35-44 year olds were most likely to shop online, reflecting how web shopping has become a convenience choice for people with busy lives, dispelling any myths of this being youth behaviour.
From Netimperative: http://www.netimperative.com, 14/12/2007

Mega-minute: £750,000 a minute in e-retail
UK online shoppers broke records on December 10th when they clocked up more than £750,000 in a single minute, according to new data according to payment processing giant Retail Decisions. At 1.09pm on 10 December 2007, shoppers an average of 128 people every second were spending almost £100 per person.
From New Media Age: http://www.nma.co.uk, 11/12/2007

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Companies

BBC, ITV and Channel 4 join forces for on-demand service
BBC Worldwide, ITV and Channel 4 have come together to form a new commercial joint venture which will contain on-demand TV content from all three broadcasters, writes Brand Republic. The service (dubbed "Kangaroo") will feature over 10,000 hours of content including catch-up episodes and older archive programming. Some content will be available for free, with other programmes available to hire or download permanently for a fee. The service will also earn revenues through advertising. All revenues will be shared equally regardless of which partner owns the original content. Kangaroo still needs formal approval from the BBC Trust and from each broadcaster's board.
From Brand Republic: http://www.brandrepublic.com, 27/11/2007

Microsoft buys Multimap
Microsoft has purchased British online map firm Multimap in a deal reported to be worth $50m (£24.4m), writes The Times. Multimap attracted over 4m unique users during November 2007 according to figures from Nielsen NetRatings, second to Google Maps with 11m. Profits at the firm reach £900,000 in 2006 and it is expected to show revenues of £12m for 2007. Multimap will complement Microsoft's existing offerings which include Virtual Earth, Live Search, Windows Live services, MSN and the aQuantive advertising platform.
From The Times: http://www.timesonline.co.uk, 13/12/2007
Multimap: http://www.multimap.com

Bebo makes itself compatible with Facebook
Bebo has launched its open application platform allowing developers to create applications and widgets which also work on Facebook, writes Brand Republic. Bebo has signed up over 40 different digital partners for the launch, including Flixster, Gaia Online, Pocketbook, Wallop and YouthNoise. Bebo has also signed up to Google's OpenSocial application platform and says it plans to integrate by early next year.
From Brand Republic: http://www.brandrepublic.com, 13/12/2007
Bebo:
http://www.bebo.com

Google launches green energy initiative
Google is to spend tens of millions of dollars in the coming year on a new strategic initiative intended to produce electricity from renewable energy which costs less than coal, writes ENN. The Renewable Energy Cheaper Than Coal project is already hiring engineers and energy experts and will initially focus on advanced solar thermal power, wind power, enhanced geothermal systems and other next-generation technologies. Larry Page said that the firm intends "to produce one gigawatt of renewable energy capacity that is cheaper than coal." This would be enough to power a San Francisco-sized city.
From ENN: http://www.electricnews.net, 27/11/2007
Google: http://www.google.com

Paramount releases latest Jackass movie for free online
Paramount is releasing "Jackass 2.5" for free online in the US, writes Brand Republic. The film will be available through a special website created in conjunction with Blockbuster. Viewers have to download Microsoft's Silverlight media player in order to view the film. This is the first in a series of films that Paramount intends to release online during the next year.
From Brand Republic: http://www.brandrepublic.com, 14/12/2007
Jackass 2.5: http://blockbuster.jackassworld.com

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Trends

Brits more social than other Europeans

A new report from Ofcom shows that British internet users spend more time on social networking websites than other Europeans, writes Brand Republic. One in four British adults claim to use such sites, and users spend on average 5.3 hours/month using them over 23 visits.
The report also found the UK leading in other areas, including digital TV. 76% of households now have digital television, ahead of the US on 61%.
Britain also has the best value "triple play" packages, with cheaper deals for phone, broadband and digital TV than any of the other countries surveyed.
Ofcom's report compared the UK to eight other European nations in addition to Japan, Canada and the US.
From Brand Republic: http://www.brandrepublic.com, 12/12/2007
Ofcom - The International Communications Market 2007: http://www.ofcom.org.uk/research/cm/icmr07

European broadband penetration to reach 71% by 2013
A new study from Forrester Research predicts that residential broadband access in Western Europe will grow by 48m households from 44% penetration in 2007 to 71% by the end of 2013, writes Netimperative. Dial-up services are expected to account for only 2% of all European online connections. The study looked at 17 Western European countries.
From Netimperative: http://www.netimperative.com, 17/12/2007
Forrester Research: http://www.forrester.com

90% of UK web connections now broadband services
New data from the Office of National Statistics (ONS) shows that nearly 90% of all UK web users now use broadband services, writes New Media Age. 88.4% of all UK connections were via broadband in September, from 86.2% in June. Connections were up 8.1% year-on-year with 45.2% of services provided between 2Mbps and 8Mbps.
From New Media Age: http://www.nma.co.uk, 21/11/2007
ONS: http://www.statistics.gov.uk

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Mobile

Global mobile subscriptions reach 3.3bn

According to Informa Telecoms there are now 3.3bn mobile phone subscriptions around the world, writes Telecoms.com. The figure represents 50% of the world's population though it does not take into account users with multiple mobile phone subscriptions. Informa estimate that 59 countries had mobile penetration rates of over 100% at the end of September. Further figures show that the number of countries with operational mobile networks has grown from 192 in 1997 to 224. Mobile networks now cover 90% of the world's population.
From Telecoms.com: http://www.telecoms.com, 29/11/2007
Informa Telecoms:
http://www.informatm.com

1/8 of US households only have mobiles
Another small moment in the conversion to the digital networked society as data from the US federal government reveals 14% of US households do not have a landline. This is more that a statistic about mobile use; it reflects a much wider change in the way digital communications work. There is a clear cohort effect in play with 30% of American 18-30 year olds likely to only have cellphones.
From StrategyEye: http://www.strategyeye.com, 10/12/2007

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Digital television

Freeview sales reach 2.4m during Q3

Sales of Freeview digital television receivers reached 2.4m units during Q3, writes The Guardian. The figures from Ofcom found that sales for the quarter were up 70% year-on-year. Sales comprised 1.17m set top boxes and 1.19m Freeview-ready integrated TV sets. 85.1% of UK households can now receive digital television services on their main TV set (from either Freeview, satellite or cable).
From The Guardian: http://www.guardian.co.uk, 19/12/2007
Ofcom: http://www.ofcom.org.uk
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Statistics

Monthly internet usage statistics for Germany, November 2007

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

Monthly top ten German parent companies for November 2007

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

Top 10 popular websites in the UK, November 2007

This list features the most popular websites based on UK Internet usage for November 2007, ranked by market share of visits across all Hitwise industries. Source: Hitwise Datacentre, November 2007, based on market share of visits
Hitwise: http://www.hitwise.co.uk/datacenter

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