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

December 2008

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Digital Strategy Consulting


We hope you have enjoyed this year's editions of Digital Intelligence and in this final monthly review we show you how despite tough times on the high street online retail continues to break new records. In China online adspend continues to show extremely strong growth - no real surprise considering the majority of under-25s now spend half their time online. Further news from the broadcasting sector also continues to emphasise how the worlds of television, radio and online continue to converge and blur.

Best wishes for the holiday season from all of us here at Digital


Danny Meadows-Klue
Founder and Chief Executive
Digital Strategy Consulting

 

Advertising

Online adspend up 42% in China
New research from Nielsen has found that online adspend in China grew 42% year-on-year to reach $541m in Q3, writes eMarketer. eMarketer predicts that the China's total online adspend will reach $1.4bn during 2008, up 37% on 2007.
From eMarketer: http://www.emarketer.com, 16/12/2008
Nielsen Online: http://www.nielsen-online.com

Advertising spending in China by Media Q3 2008

Advertising spending in China by Media Q3 2008

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

Online advertising in China 2007-2012

Online advertising in China 2007-2012

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

UK online adspend set to slow
GroupM have forecast that online adspend in the UK will slow significantly during 2009, writes ClickZ. According to the firm's "This Year Next Year" report, GroupM expects year-on-year growth of just 3.7% in 2009, compared to 22% in 2008 and 36% in 2007. However the firm also anticipates that online will remain the only advertising sector to experience growth during 2009. Total UK adspend for all media is expected to fall during 2009, according to the study.
Further research from eMarketer also predicts much lower growth in 2009, with the firm now predicting a year-on-year rise of 7.2% (£3.58bn) in the UK.
Globally ZenithOptimedia expects total adspend to fall £14bn (down 0.2%) though online is still predicted to rise by 17.7%.
From ClickZ: http://www.clickz.com, 05/12/2008
GroupM: http://www.groupm.com/

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Ecommerce

UK online shopping sets new record

New figures from the Interactive Media in Retail Group (IMRG) show that Monday 8th December was the biggest online shopping day in 2008. Sales volumes were up 18% as sales values rose 14%, reaching £320m as consumers looked for bargains online. It was not the busiest day for online retail traffic however. According to Hitwise, traffic to retail sites accounted for 12.32% of all UK visits - the third highest result for 2008. The IMRG reasons that consumers are using the weekend to search for products before buying them online on Monday.
A number of online retailers broke sales figures on the day. Play.com had their busiest ever day with order volumes up 45% year-on-year. At peak trading time the firm processed over 1000 orders per minute - compared to 700 orders per minute at the same time in 2007. Sales for the day saw over 500,000 units shipped, including 115,000 copies of Batman: The Dark Knight. Firebox.com also had their busiest day ever with a record number of orders placed.
Research carried out earlier this year had found that 68% of shoppers were more likely to buy products online this Christmas with 77% of shoppers planning to purchase half or more of their Christmas shopping online (from 56% in 2007).

IMRG: http://www.imrg.org, 09/12/2008

Searches for online discount vouchers up 133% in UK
According to Hitwise, UK searches for discount vouchers have risen 133% during the last year. Visits to voucher websites have also grown, increasing by 45% during the same period. British internet users searched for over 20,000 variations on the term "voucher" during the 12 weeks ending 15th November. According to Hitwise consumers are more likely to visit retailers who offer sales and reductions in the run up to Christmas. Marks and Spencer recently attracted one in every 33 UK internet visits to online retailers (coming behind eBay and Amazon). Share of visits to the store nearly doubled as they reached 15.72% (up from 8.32% the day before).
Hitwise: http://www.hitwise.com, 09/12/2008

UK internet searches for vouchers

UK internet searches for vouchers

Source: Hitwise
Hitwise
: http://www.hitwise.com

Search terms containing voucher

Search terms containing voucher

Source: Hitwise
Hitwise
: http://www.hitwise.com

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Companies

Amazon UK moves into music downloads

Amazon UK has opened an online MP3 music store offering over 3m digital rights-free tracks from 59p and full albums from £3, writes Brand Republic. In contrast, the cheapest price for a single track on Apple's iTunes Music Store is currently 79p. All four major record labels (SonyBMG, Universal, EMI and Warner) are offering music through the new Amazon MP3 store, in addition to a number of independent labels such as Beggar's Banquet.
In total, online music sales in the UK were worth £163m in 2007.

From Brand Republic: http://www.brandrepublic.com, 03/12/2008
Amazon MP3
: http://www.amazon.co.uk

Virgin Media launches 50Mbps super broadband
Virgin Media has become the UK's first ISP to launch a super fast residential 50Mbps broadband service, writes Telecoms.com. The premium service costs £51/month, though this is reduced to £35 for users with Virgin phone lines. The service uses FTTC (fibre-to-the-cabinet) technology in conjunction with copper connections to the home. Virgin has been testing the network since the summer and aims to have it rolled out over its cable network during the next six months.
Virgin has also announced that it will be using use Yahoo's oneSearch service to power its Virgin Media mobile search engine. The firms intend to deliver search ads and sponsored search results on the service from early next year. The deal brings Yahoo's market share of the UK's mobile search audience to 80%.

From Telecoms.com: http://www.telecoms.com, 16/12/2008
Virgin Media: http://www.virginmedia.com

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Trends

Asian internet users spend most leisure time online
A study entitled Digital World, Digital Life from TNS Global has found that Chinese internet users under 25 spend on average 50% of their leisure time online, writes ZDNet. Japanese and Koreans shared second place behind the Chinese, with each countries respondents claiming to spend 40% of their free time using the internet. Chinese internet users are very engaged with social media, with 94% of those polled using online forums or message boards and 60% contributing on a regular basis. Nearly 90% read or contribute to blogs and 85% use chat rooms.
In the UK, the report found that adult British internet users spend on average 28% of all their free time on the internet (rising to 32% for 18-24 year olds). British housewives came top for leisure time spent online, whiling away 47% of their free time on the internet. Top activities for British internet users include searching for information (80%), using online banking (76%) and reading the news (75%).
In total the study polled 27,522 internet users across 16 countries. On average and across all those surveyed people now spend 30% of their leisure time online.
From ZDNet: http://news.zdnet.co.uk, 01/12/2008
TNS Global: http://www.tnsglobal.com

Percentage of leisure time spent online

Percentage of leisure time spent online

Source: TNS Global
TNS Global: http://www.tnsglobal.com

Online activities of UK internet users

Online activities of UK internet users

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

Frequency of internet usage by UK adult internet users

Frequency of internet usage by UK adult internet users

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

Google reveals top searches of 2008
Google has published a list of this year's top internet searches, writes Netimperative. The global top ten list includes two non-English language social networking sites: Spanish-aimed Tuenti and Polish-speaking Nasza Klasa. In the UK the success of the BBC's iPlayer service has seen the word come top of the fastest-rising terms list. The most popular search results in the UK are "Facebook", "BBC" and "YouTube".
From Netimperative: http://www.netimperative.com, 11/12/2008
Google UK: http://www.google.co.uk

Fastest rising global search terms

Fastest rising global search terms

Source: Google
Google
: http://www.google.com

Top UK search terms

Top UK search terms

Source: Google
Google
: http://www.google.com

Fastest rising UK search terms

Fastest rising UK search terms

Source: Google
Google
: http://www.google.com

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Mobile

Mobile revenues on course for $1bn by 2013
The latest forecast from Informa Telecoms & Media predicts that annual revenues for the global mobile market will surpass $1.03tn by 2013, with total worldwide subscriptions passing 5.3bn, writes Telecoms.com. The firm estimates that the world's mobile market will increase by 56% between the end of 2007 and the end of 2013. While it took over 20 years for the world to reach 3bn mobile subscriptions, a further 1.9bn additional subscriptions are expected in only six years, with the 5bn point being crossed in 2011. According to Informa 78% of global net additions between 2007 and 2013 will come from Asia Pacific, Africa and Latin America. Over half of these will come from only five markets: India, China, Indonesia, Brazil and Russia. By 2013 global subscription penetration will have reached 75%.
From Telecoms.com: http://www.telecoms.com, 15/12/2008
Informa Telecoms & Media: http://www.informatm.com
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Broadcasting

BBC sets out £120m partnership plan
The BBC has suggested a range of possible partnerships with other UK public service broadcasters which include the sharing of its iPlayer technology and the development of a free-to-view broadband internet-enabled digital TV set-top box, writes The Guardian. The proposals were included in the corporation's final submission to Ofcom's public service broadcasting review. Other measures put forward include sharing regional news offices with ITV and scrapping fees for TV listings. Both ITV and BT have responded favourably to the BBC's suggestion to create an internet-based Freeview box and the three organisations are now working in partnership to promote a common industry approach to the delivery of TV services over the internet.
Were the BBC to share its iPlayer service with other broadcasters, it could eventually develop into a general video-on-demand platform. The service has received over 237m viewing requests since its official launch last Christmas and the corporation has recently said that it intends to launch its new version 3 in the first half of 2009.
From The Guardian: http://www.guardian.co.uk, 11/12/2008
BBC: http://www.bbc.co.uk

ITV to re-brand online catch-up service
ITV is planning to rename its online "Catch Up TV" service to the "ITV Player", writes Marketing Week. The service was launched in March 2007 and provides access to popular ITV shows such as Coronation Street and the X Factor. The news follows the announcement of a new deal between ITV and Google to serve AdSense text ads alongside search results on ITV.com. Google already powers the site's search listings which have seen traffic grow from 500,000 queries in August 2007 to almost 5m in November 2008. In total ITV.com receives an average of 5.2m monthly users.
From Marketing Week: http://www.marketingweek.co.uk, 05/12/2008
ITV: http://www.itv.com

Over 30% of UK adults have listened to the radio online
The third Measurement of Internet Delivered Audio Services from RAJAR has found that 31.7% of UK adults have listened to the radio via the internet. According to the study 16.1m people now claim to have listened to the radio online compared to 14.5m people in May this year. 15m people listen to the radio live and 13.5 use a Listen Again service. 89% listen at home, with 21% at work and 6% elsewhere.
The study also found that 7.2m people have now downloaded a podcast (from 6m in May), while 4.1m clam to listen to a podcast each week (from 3.7m in May 2008).
RAJAR: http://www.rajar.co.uk, 10/12/2008
Third Measurement of Internet Delivered Audio Services report (PDF)

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Statistics

Monthly internet usage statistics for Germany, November 2008

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

Monthly top ten German parent companies for November 2008

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

Top 10 popular websites in the UK, November 2008

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

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