IAB Reveals Europe’s Attitudes To Interactive
New research has been released revealing the attitudes of advertisers and agencies across Europe towards email, SMS and interactive TV advertising. Overall, it was found that interactive media is seen as more of a potential marketing communications tool than an advertising one, but that advertisers are still uncertain on how to use it in the marketing mix.
The Interactive Advertising Bureau (IAB) was one of seven partners in the pan-European Active Ads study. Over 18 months information was collected from questionnaires sent to 900 ad agencies and almost 400 advertisers, as well as data from 40 interviews. The results reveal the European industry’s perception of interactive advertising now and for the future.
Several formats and uses of the internet were identified as the most successful. Among these was email marketing, partly because it is cheaper than traditional direct marketing, offers a short response time and a good level of personalisation. Sponsorship and co-branding partnerships, games and contests, pop ups and cross media campaigns were also favoured.
In the future, internet advertising is expected to continue to grow, albeit at a slower rate as the market matures. This will be in part because the number of users online will increase and also because small and medium advertisers will enter the scheme. This last part may well be partly due to the predicted fall in the price of banner advertising online and it is also thought that the use of the internet as a marketing tool will become more prevalent.
Owners should note, however, that it is thought that there will be an increased trend for payment by results, which will require a higher level of measurability and accountability.
When it comes to wireless marketing, the feeling is that while it is beginning to be developed it is still at an experimental stage. However, it is well thought of in markets with a large penetration and is proving effective for reaching certain target groups such as young urbanites.
If wireless marketing evolves as the survey predicts, it will be dependent on improved bandwidth, usability and adverts as a added value service for consumers. Other factors identified as necessary for success were improved targeting, audience research, branding, click rates to corporate sites and online purchase rates. There were also several negative elements identified as threats to the development of the mobile advertising market. These included spamming and data protection issues.
Interactive television (iTV) is also seen as a market to be built, which is as yet at an experimental stage, although a business model is developing.
Promise is seen in the fact that advertising on iTV could offer one to one communication with what used to be a mass communication tool, the possibility of perfect targeting, hitting only interested potential customers and with accurate measurement methods and payment on results. It is also perceived as safer for commerce than the internet.
A number of expectations and threats were identified with regards the future of iTV. These included the necessity of being able to transfer from platform to platform, the current large size of production costs and the need to improve metrics.
Interactive Advertising Bureau: 020 8683 9667 www.iabuk.net
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