Wanadoo Rapped Over Misleading Search Advertising

Internet service provider Wanadoo, formerly Freeserve, has been ordered to make it clear that some of the search results on its website are paid for by advertising following complaints from consumers.

The Advertising Standards Commission ruled that internet users had been mislead by the fact that sponsored links on the Freeserve site, which has now been rebranded as Wanadoo, were not clearly identifiable.

The watchdog ordered the company to ensure that all future advertising on its search engine was adequately marked, after complaints that its failure to highlight paid-for listings was likely to mislead users into believing that the highest ranked result was the most relevant.

Official figures are expected to reveal that online adspend could have risen as high as £330 million during 2003, representing phenomenal growth of almost 68% on the previous year’s figure of just under £200 million (see Online Expected To See Revenue Reach £350 Million).

The Internet Advertising Bureau predicts that search targeted marketing will continue its rapid growth spurt as more brands realise the potential of the internet as a direct marketing medium. It also expects to see an increase in the number of marketers using the internet as a brand building medium.

Jupiter Research has reiterated the IAB’s predictions, claiming that search targeted marketing will be the fastest growing area of online advertising this year. Gary Stein research analyst at the firm stated: “Seventy six percent of marketing executives that used search engine marketing rate it as more successful than banner style advertising” (see New Research Reflects Growing Power Of Search).

Wanadoo: 0870 872 0099 www.Wanadoo.co.uk

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