Welcome to October's Click-thru, your indispensable round-up of the latest online industry news, brought direct to your inbox from the Internet Advertising Bureau.
As alluded to in last issue's Click-thru, the IAB has been making the news over the last month. We were delighted to confirm the stellar line-up of Bill Gates and Lord Puttnam as keynote speakers at our first annual IAB conference, Engage 2005. And just this week we released the reults of our IAB/ PwC bi-annual adspend study. Internet advertising expenditure for the first half of 2005 reached £490.8 million, a figure that represented a 62.3% increase when compared to the same period in 2004. This terrific growth has seen online advertising overtake outdoor in terms of market share.
Further details of these exciting developments are included below, along with a full round up of the latest industry news that includes the launch of a super-fast 24 megabit broadband service, and how the demand for online cricket updates knocked company networks for six. Another record breaking e-commerce Christmas is predicted and, in separate stories, the internet is threatening the future of top-shelf magazines whilst helping Jesus spread the good word.
As always, I hope you find it a valuable and enjoyable addition to your inbox.
Kind Regards
Guy Phillipson, CEO, Internet Advertising Bureau
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The Top-line...
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| Healthy figures |
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Online advertising expenditure for the first half of 2005 reached £490.8 million, overtaking the market share of outdoor advertising, according to the Internet Advertising Bureau (IAB), and PricewaterhouseCoopers (PwC) online adspend survey.
IABuk.net, October 3
www.iabuk.net/news
BBC, October 4
http://news.bbc.co.uk/1/hi/business/4307856.stm
From July 2004 to July 2005 the UK broadband market rose by 70% according to research from the National Statistics Office. 53.9% of all UK internet connections are through broadband.
NMA, September
http://www.nma.co.uk/Document.aspx?did=a3fc8f25-5ab0-4169-b06c-87637f0e5966
Hitwise UK predicts yet another record breaking Christmas for online retailers, with visits to internet retail sites set to grow 12% this December. It is predicted that ebay could attract almost half the online Christmas shopping market
Media Guardian, September 13
http://media.guardian.co.uk
Research from Continental has revealed nearly 7 in 10 internet users now shop online, spending nearly £500 every year.
Media Guardian September 20
http://media.guardian.co.uk | |
Online behaviour
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| The online consumer |
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"Internet Rangers" out to get "Silver Surfers"
BT marked grandparent's day on September 24 by encouraging children to become "internet rangers" and transform their grandparents into silver surfers. BT predicted that by 2025, 23 million adults could be excluded from the digital revolution and the telecoms company believe children are those best placed to teach their grandparents about the internet.
BBC, September 24
http://news.bbc.co.uk/1/hi/technology/4276068.stm
BBC mix it up online with VJ project
Nearly 100 archived programme extracts from BBC Radio 1 and 1Xtra are to be released to UK internet users to download and mix. The footage is being made available as part of nationwide competition to encourage interaction with the BBC's material for budding video jockeys.
NMA, September
http://www.nma.co.uk/Document.aspx?did=1c90e7a3-1f27-4c1b-b01c-f530e5849d24
The internet has its knockers...
Although still a taboo topic amongst the industry, the online pornography industry which generates over £1 trillion of revenue a year, 13 % of total internet turnover, is proving hard to ignore. The absorption of new technology and softening of laws has seen adult content become widely available online. This increased access, coupled with print companies' slowness to adapt to the new formats has put the future of "girlie magazine" into question.
Media Guardian, September 11
http://media.guardian.co.uk/newmedia/story/0,7496,1567138,00.html
'Help' at hand as it approaches online download record
100,000 copies of the War Child album, Help: A Day in the Life were downloaded only days after the album was recorded and released in an unprecedented 24 hour period. Featuring new tracks from Coldplay, Damien Rice and Radiohead, the album is on course to become the most downloaded in history, with profits going to help children affected by war.
Brand Republic, September 13
http://www.brandrepublic.com/bulletins/digital/article/505738/downloads-historymaking-war-child-album-top-100000/
For more information
www.warchildmusic.com
The online swap-shop
Media Guardian has provided a brief history of file sharing sites; discussing the popular, controversial and copyright infringing programme Kazaa and its successor, the legitimate Skype. These downloadable programmes enable users to communicate with other users of the same programme.
Media Guardian, September 13
http://media.guardian.co.uk/newmedia/comment/0,7496,1568862,00.html
Internet holds the key for DVLA driver convenience
The Driver and Vehicle Licensing Agency (DVLA) are planning an online initiative that will enable drivers to apply for and update their licence information online. The DVLA believes the internet is the key for improving service speed, convenience and safety for consumers. IAB members Agency.com will develop online creative for the February 2006 launch of the Drivers Re-engineering project to target those requiring both provisional licenses and license updates.
Brand Republic, September 9
http://www.brandrepublic.com/bulletins/digital/article/505243/dvla-hires-agencycom-drive-traffic-new-website/
Companies caught out by ashes
As the nation suddenly realised how much they really actually did love cricket in September, there were fears that the interest and demand for updates on the internet could cripple some firms computer networks. "While every company is aware of the risks posed by computer viruses, few will have ever considered Ricky Ponting and Michael Vaughan's men a potential threat to their networks." Stuart Beattie of Network General warned.
The Sun Online, September
http://www.thesun.co.uk/article/0,,2-2005410143,00.html
Ashes reignited
For those feeling the void left by 'everyone's new favourite sport', BBC Radio Five Live has been offering audio highlights of the 2005 Ashes series. Key events through out the five tests are included as well as the triumphant moment that England regained the Ashes and finally raised that tiniest of trophies.
BBC, September 13
http://news.bbc.co.uk/1/hi/technology/4240938.stm
Ebay makes an internet purchase of their own; $2.6billion on online telephony company Skype
Online auction site and the UK's most visited website Ebay has purchased internet phone company Skype in a deal worth $2.6bn. Analysts from Goldman Sachs however, have questioned the motives behind the deal reasoning that a purchase achieves nothing a licensing couldn't.
BBC, 12 September
http://news.bbc.co.uk/1/hi/technology/4238258.stm
Gervais' new office online
Ricky Gervais, star of The Office and Extras says he intends to push the boundaries of comedy even further by offering original half-hour chat shows as downloads through his website. The shows will take a similar feel to his XFM radio shows and will be available free of charge. Following on from BBC 3's forays into providing exclusive online comedy with the Mighty Boosh, the Gervais show reaffirms the internet's role in providing an outlet for new comedy.
Brand Republic, September 9
http://www.brandrepublic.com/bulletins/br/article/505361/ricky-gervais-plans-launch-downloadable-chatshow/
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| Online Audience Behaviour |
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Texts, pets and purchases out and online in for ten-year-olds
A new nationwide study into the online behaviour of 10-year-olds, from IAB members AOL has revealed that playing with pets, shopping and texting friends pale in comparison with going online. The survey also revealed that nearly a quarter of those with access to broadband use the internet everyday, with 31% revealing their favourite website to be Google.
Brand Republic, September 28
http://www.brandrepublic.com/bulletins/digital/article/519144/aol-opens-window-world-10yearolds-googling-rage/
McDonalds online campaign targets lunchtime audience
McDonald's integrated campaign for the launch of its new deli sandwich range, includes the fast food giant's biggest digital media spend to date. The online ads will run between 10.30am and 2.30pm, in order to target hungry workers unsure about what to eat for lunch.
Brand Republic, September 14
http://www.brandrepublic.com/bulletins/digital/article/505634/mcdonalds-emphasises-deli-sandwiches-quality-digital-push/
Travel and financial Online purchase decisions analysed by media company
In the decision making process surrounding which companies a consumer will use to get an online quote on a financial product, the ease of quotation process is proving a major factor. This new research commissioned by media agency Equi=Media is part of a larger study to gain an insight into the consumer journey in the purchasing of financial and travel products.
Revolution Magazine, September 13
http://www.revolutionmagazine.com/News/index.cfm?fuseaction=ViewNewsArticle&newsID=505588
Digital music users eject CDs in favour of downloads
150,000 of digital music service Napster's 750,000 users claim that they have given up buying CDs, favouring the convenience of downloads. Napster UK manager Leanne Sharman believes the survey is indicative of the future of the music industry, claiming it was, "a matter of time" before downloading overtook high street shops as the most popular way to buy music."
BBC, September 5
http://news.bbc.co.uk/1/hi/entertainment/music/4216400.stm
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| Broadband |
Be's the magic number
Broadband ISP, Be, has launched a £24 a month service that is three times faster than closest rivals; UK online, Bulldog and Homechoice. The download speed the service offers is 24 megabits a seconds. To give an idea of what this increased band width offers; you could stream twin high definition TV channels, whilst surfing the internet or making VOIP calls, all through your computer.
Media Guardian, September 26
http://media.guardian.co.uk/newmedia/story/0,7496,1578693,00.html
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| Blogging |
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"Real peoples'" opinion sought in blogs
Three-quarters of those questioned about their opinions to blogs said they had consulted the online journals before making their purchase decision according to a new survey from Hostway. Respondents said they put faith in blogs because they were written by real people, based on their actual experiences. The outcome of the survey shows how blogs are increasing being viewed as a source of trustworthy product and service information.
BBC, 26 September
http://news.bbc.co.uk/1/hi/technology/4282614.stm
Google's launches search site for blogs
Google has recognised the internet blogging phenomenon by unveiling a website that enables online users to search for blogs. All online weblogs will be indexed, not merely the ones published on Google journal site, Blogger. With more than 17million blogs online according to indexing company Technorati, this addition to the Google cannon will help locate specific subjects.
BBC, September 14
http://news.bbc.co.uk/2/hi/technology/4244944.stm
Blogs recognised for first time at online publisher awards
User-generated content, including blogs are being recognised in the nominations for the Association of Online Publishers (AOP) for the first time. The nominees include, the Guardian, Q4mMusic.com and the BBC's London bombings amateur footage.
NetImperative, September 13
http://www.netimperative.com/2005/09/13/AOP_blogs
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Online creative
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| New online |
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Ikea adds an extra dimension
Ikea is using an online-only 3D commercial as part of its latest advertising push. A Time-slice format is used to show a range of six different kitchens shot in 360-degree 3D in the ads from agency Forsman & Bodenfors.
Brand Republic, September 28
http://www.brandrepublic.com/bulletins/br/article/519166/ikea-unveils-360degree-commercial-internet/
Film download site's murderous intentions
A range of films are available to download for free from a new independent film site. The site has made its intentions plain to see with its title, DeathtoHollywood.com and will offer indie movies for download with the consent of the producers.
Gizmag, September
www.gizmag.co.uk |
| Video |
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IPTV; the end of these TV Times?
Lovelace consulting has released a report called 'IPTV: Broadband meets broadcast', that predicts TV is set to become more like the internet over the next few years, with millions of programmes available to download whenever the user chooses. TV through the internet is set to be the next big thing in both the online and television mediums, with existing TV schedules becoming a thing of the past, as the internet continues to put the consumer in command.
The register, September 14
http://www.theregister.com/2005/09/14/iptv_report/
BBC's new video trial feeds the 5,000
5,000 people of the 30,000 that registered have been selected to take part in the trials for the BBC's integrated Media Player. The fortunate 5,000 will have radio and TV content made available to them online within a week of broadcast and their viewing habits will be recorded and analysed until the end of the year. A BBC spokesperson said of the service, "it has the potential to truly revolutionise the way people watch and listen to programmes."
BBC press release, September 28
http://www.bbc.co.uk/pressoffice/pressreleases/stories/2005/09_september/28/imp.shtml
Live English football to be streamed online to Chinese audience
The potentially large and lucrative Chinese market has been opened up to UK football clubs as a deal has been struck by the football league that will see live matches available in China over the internet. The online streaming is set to capitalise on the growing interest in the English game in the world's biggest consumer market.
NMA, September
http://www.nma.co.uk/Document.aspx?did=4410aa5a-801f-477e-8e91-5aebc4af13e3
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| Display |
Click me baby one more time as Britney's perfume range launches online
New mum, Britney is the latest star to believe launching a perfume range is the key to a successful music career and is supporting the campaign for her Fantasy range with online advertising. The ads - which debuted on AOL last month - were created by US agency Goodby and directed by Spears' 'Born to Make You Happy' director Billy Woodruff that launched on AOL last month.
Brand Republic, September 14
http://www.brandrepublic.com/bulletins/digital/article/516775/britney-spears-fantasy-perfume-tv-campaign-debut-online/
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| Viral |
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IAB/ RAB collaboration promoted in 'nasty' online viral
The internet/ radio combined media consumption study conducted by us here at the Internet Advertising Bureau and our friends at the Radio Advertising Bureau is being promoted through an online Viral campaign and website. By visiting wepredictariot.com you can view a piece of video that shows an office listening to the radio. The DJ reveals details of the study and a competition that drives the workers to violence as they battle to win £1,000 of travel vouchers.
September
www.wepredictariot.com
Courir Viral campaign promotes "Everyday Sneaker" movement
Paris agency, Mask have created a viral campaign for the Courir chain of shoe shops. The spoof campaign focuses on fictional Japanese businessman, Takeshi Mushido, the creator of the 'Everyday Sneakers' movement, who has made his entire company wear sneakers in order to relax and make them more productive.
Brand Republic, September 19
http://www.brandrepublic.com/bulletins/digital/article/517385/french-shoe-retailer-chooses-launches-spoof-everyday-sneakers-viral/
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| Promotional microsites |
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Beer brand goes football crazy
As football's entertainment factor is placed under the microscope, a new promotional site has been launched by major football sponsors, Heineken, that enables football fans to post movies and photos of games online. ChampionsPlanet.com will allow fans to express their love of the sport and prove that rumours of the death of the game are premature. The site follows the recent trend of advertisers using consumer-generated content for marketing purposes.
ClickZ, September 16
http://www.clickz.com/news/article.php/3549311
Cup-a-soup tell you how much you need a hug on brand building site
Users can find out exactly how much they need a hug with new site from Campbell's Batchelors Cup a Soup that supports it's 'hug' TV campaign. The site http://www.agreatbighuginamug.com which is promoted on packs, is part of a major brand building initiative from Campbell Grocery Products that also includes a site for V8 juice www.V8juice.co.uk
Revolution magazine, September 15
http://www.revolutionmagazine.com/News/index.cfm?fuseaction=ViewNewsArticle&newsID=516829
Jesus increases online presence with new website
Following on from last month's story about a vicar posting his sermons on iTunes, religion continues to increase it's online presence with The Churches Advertising Network launching a website and a text message poll, "hero or zero" to spread the good word about Jesus. A radio advertising campaign will direct people to the site rejesus.co.uk which paints a picture of Jesus as a radical revolutionary.
Revolution Magazine, September 14
http://www.revolutionmagazine.com/News/index.cfm?fuseaction=ViewNewsArticle&newsID=516807
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E-commerce
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Don't call us, we'll call you
Advertisers will have 'shop windows' created for them with the launch of a new online service. Pureprofile.co.uk allows a community of consumers to advertise the products they are looking for and advertisers can then contact them with appropriate offers. The consumers are then encouraged - with financial rewards, to respond to these offers.
Brand Republic, September 27
http://www.brandrepublic.com/bulletins/dm/article/518989/new-website-rewards-consumers-creating-shop-windows-marketers/
Heinz beanz onlinez
The FMCG sector have proven slow to adapt to the online advertising possibilities, Heinz is leading the way in recognising the medium's potential by launching an online store that showcases new products, offers online exclusives and acts as a marketing tool. The e-commerce site heinz2u.co.uk designed and built by specialist etail agency e-Inbusiness will enable speciality products to be distributed nationally.
NMA, September
http://www.nma.co.uk/Document.aspx?did=d0faa195-3ec9-4dfd-aefb-99f378929583
Glamour.com's Fashion Finder brings the high street online
The Glamour.com brand has been expanded with the launch of Fashion Finder, an online shopping helper. The initiative from Glamour.com - an online Conde Nast title - went live in September initially offering 300 products from retailers including Top Shop, Miss Selfridge and Chloe. The Fashion Finder claims to be the first to "browse the full potential of the high-street at the click of a mouse". Users will be able to search for items by criteria such as look, colour, label and price."
Brand Republic 5 Sep 2005
http://www.brandrepublic.com/bulletins/digital/article/504189/glamourcom-launches-fashion-finder-aid-shoppers/
Thank you for the music
A new e-commerce portal site, Shopfar, is rewarding user's loyalty with iTunes vouchers. Any purchases made on sites affiliated with shopfar.com earn songs, in multiples of one, ten or one hundred.
NMA, September
http://www.nma.co.uk/Document.aspx?did=1628e3b1-d91f-4ed5-8cbb-f87d3c5e65a9
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| Member company news |
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iVillage hunt for great British bloke
The female targeted website, iVillage.co.uk has launched a brand building hunt to find the UK's sexiest husbands and boyfriends; with the 12 winners to make up an online 2006 calendar. Visitors to iVillage.co.uk are asked to send in pictures and an explanation as to why their man is "great British bloke. Partners of the IAB men, need not apply...
Brand Republic, September 26
http://www.brandrepublic.com/bulletins/digital/article/518632/ivillage-launches-hunt-uks-best-readers-husband/
Google's birthday wish
As the candles were still smoking on their seventh birthday cake, Google announced their plans for expansion for the future. The search engine intends to grow three-times larger than its rivals as it launches an online index 1,000 times that of their original index.
Brand Republic, September 27
http://www.brandrepublic.com/bulletins/digital/article/519154/google-celebrates-seventh-birthday-search-engine-expansion/
Wanadoo invest to challenge BT's broadband dominance
France Telecom's internet network, Wanadoo, is further challenging BT's dominance in the broadband market. They have announced that they plan to spend £680m in an effort to ensure 50% of its 2.2m UK customers use their own network rather than BT's within the next two to three years.
The Business, September
Google (un)Earth Roman Villa
An Italian man using the online satellite image mapping tool, Google Earth, to look at his home found the remains of an ancient Roman Villa. He saw unusual shading by his home in Sorbolo, Parma and local archaeologists confirmed it was once the location of a Roman Villa.
BBC 21 September
http://news.bbc.co.uk/1/hi/world/europe/4267238.stm
Internet ally not enemy Yahoo! boss tells broadcasters
Yahoo! boss Terry Semel has told broadcasters that they should not view the internet as a threat and should embrace the medium. At the Royal Television Society's Cambridge convention, he said that Yahoo!'s future was not as a content creator, but rather as a distributor and that the medium provided broadcasters with the ideal outlet for their vaults of archived materials.
Media Guardian, September 19
http://media.guardian.co.uk/newmedia/story/0,7496,1572015,00.html
AOL launch spoken word search service
AOL has embraced the podcast craze by becoming the latest company to offer a podcast search service. Following a deal with search engine technology firm Podscope, AOL search is now able to trawl spoken word audio files in the same way text is accessed.
NetImperative, September 14
http://www.netimperative.com/2005/09/15/AOL_podcast
Yahoo! enters a 'world of conflict'
Yahoo! is challenging traditional media companies by moving into the world of war reporting. They have hired one of the world's best-known war correspondents, Kevin Sites to report solo from the world's "hot zones" for the "One man. A world of conflict" backpack journalism initiative.
Media Guardian, September 13
http://media.guardian.co.uk/newmedia/story/0,7496,1568857,00.html
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US online advertisers spend record $5.8bn in first half of 2005
As the UK IAB/ PwC online adspend study revealed a 62.3% year on year increase to a 2005 half-yearly figure of £490.8 million, the US study also displayed positive figures. The increased popularity of search advertising has helped grow US online advertising spending by 26% in the first six months of the year. Advertisers spent a record $5.8bn (£3.3bn) online in the six months to June, up from the $4.6bn they spent in the same period a year before.
Media Guardian, September 27
http://media.guardian.co.uk/newmedia/story/0,7496,1579367,00.html
US adspend to sail past $10billion mark
According to research from eMarketer US internet ad spending will hit $12.9billion in 2005, bypassing the $10billion mark for the first time. This figure is expected to increase by a further $10billion within the next four years.
eMarketer, September 15
http://www.emarketer.com/Article.aspx?1003581
Global digital divide is a major development issue
Technology analyst, Bill Thompson has argues in a BBC online article that our leaders need to place more emphasis on getting the whole word online. He argues that in a world where education, trading and social contacts increasingly depends on the internet, not being connected is becoming as damaging to local economy as trade barriers or tariffs.
BBC, 16 September
http://news.bbc.co.uk/1/hi/technology/4251760.stm
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Contact us
Thank you for taking the time to read IAB Click-thru. If you have any comments/ suggestions as to the type of stories you would find useful for future editions of Click-thru or if you have been forwarded this publication by a colleague and wish to subscribe, please email the editor ben.butler@iabuk.net. |
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