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
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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

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

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

Source:
TNS Global
TNS Global:
http://www.tnsglobal.com
Online activities of UK internet users

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

Source: Google
Google:
http://www.google.com
Top
UK search terms

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