Online advertising in the Sunday Times

By April 1, 2007 2 Comments

There is a feature in today’s Sunday Times about online advertising and it echoed many of the themes I have been talking about on this blog over the last few months.  I hope it wasn’t an April Fools Day article….

  • First off they cite Nigel Morris CEO of Isobar a network of digital marketing agencies that is part of Aegis.  (Aegis is a fantastic business, and Isobar is the name of the network rather than a true brand in itself – but for a digital agency there site is really hard to find, and once you are there, your only option is to watch a video, minimum length three mins – to me that is two things they have done badly.)  But Nigel makes a good point I have made before – that scheduled TV channels just don’t work for the next generation of consumers.
  • They cite PWC data which says that the internet has a 27% share of media time – in my post last week I said “at least 30%” – I am pretty sure I saw that number from a reputable source a year or two ago, but I can’t find it again now.  The message remains the same though – media consumption online is way ahead of media spend online (which the Sunday Times has at 11%).
  • At £870m Google “makes more from UK advertisers than either Channel Four, Sky or Five”
  • There is “huge more upside” – “lots of brands have yet to go through the learning process [of moving ad budgets online]”
  • Banner ads have a questionable impact – Claire Enders of media reseach firm Enders Analysis writes “there’s very little emotional response to online display”
  • She also said that Yahoo, MSN, AOL and others have been struggling to make pre-rolls work – user don’t like them

One thing that surprised me was Glen Drury of Yahoo UK saying that behavioural targeting produces a 56% uplift in response rates.  Great if that is what they are seeing across the board.  The rumours I have heard would put the number much lower.