Broadband To Provide A Boost To Net Revenues

Online ad revenues will increase by almost 50% during 2003, as a result of increased web usage, according to i-level, the UK’s leading interactive media agency.

It has been a difficult few years for the online advertising industry but internet consumption has continued to grow and i-level predicts that it will increase from 6% to account for 8% of all media consumption.

At present, web revenues make up just 1% of total advertising income, but the Internet Advertising Bureau (IAB) hopes to double the mediums market share in 2003 (see IAB Plans To Double Internet Ad Spend In Two Years).

According to Oftel, 11.5 million UK homes had web access in October 2002 and i-level forecasts that home internet penetration will grow by 17.5% in 2003. Broadband services are seen as the primary driver for the online spurt and it is estimated that 2.7 million people will have high-speed internet access by this October. On average, broadband users spend 22 hours online per week while the comparative figure for dial-up users is just 9 hours.

Assuming that broadband hits 20% penetration and home internet access growth is maintained, the supply of audience will increase by 34.5% this year. This, i-level predicts, will help contribute to a 46% growth in online advertising revenues over the year.

i-level: 0207 340 2700 www.i-level.com

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