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INSIGHTanalysis: Media Healthcheck – December 2006

INSIGHTanalysis: Media Healthcheck – December 2006

In December, the Chartered Institute of Marketing released the results of its Marketing Trends Survey, which revealed that marketers in the UK expect online and digital marketing to be the area in which marketing spend will increase the fastest, with marketers preparing to up their budgets in this area by 2.7%.

The CIM survey showed that it is smaller companies who are embracing this activity most readily and these smaller companies are forecast to increase their spend in this area by 3.2% (see UK Marketing Spend To Increase Fastest In Online And Digital).

Meanwhile, research from OPera Media said that strong UK company profitability will act as the biggest boom to advertising spend in 2007 (see 2007 UK Advertising Spend Boosted By Online).

OPera adds that online will contribute the majority of next year’s expenditure increase, as it did in 2006.

In a month which saw several global ad forecasts, GroupM published a report which said that global advertising growth is steady and in line with the global economy at 5.3% for 2006, and set to be 5% for 2007.

It added that the internet currently accounts for 6% of global advertising and, including search in all major markets, this increases to at least 8% and is adding a point each year (see GroupM Forecasts Steady Global Ad Growth).

ZenithOptimedia forecast that the global ad market will grow 5.4% in 2007, 5.8% in 2008 and 5.3% in 2009, staying ahead of the 5.1% rate it has grown at for the past ten years.

According to the group’s forecast, internet adspend will grow more than 28% in 2007, while the rest of the market grows 3.9%, with the medium becoming larger than radio by 2009 (see Global Adspend Growth Fuelled By Online).

Staying with online, Point Topic released analysis showing that the global number of broadband subscribers reached 263.8 million in Q3 2006, with a total of 16.9 million lines added over the quarter.

However, the figures to September 30 2006 show that broadband’s annual growth rate dropped from 38% to 33.3% in the previous 12 months (see Global Broadband Growth Rate Drops).

In other research from Point Topic, Swindon was shown to have remained the most broadband place in Britain, with the Wiltshire city having an estimated penetration rate of 59.8% as of 30 June 2006 (see Swindon Still Most Broadband Place In Britain).

In the US, Nielsen//NetRatings published research which showed that over three quarters of active US home internet users connected via broadband during November, up 13 percentage points from 65% of active internet users a year previously.

US broadband users spent 33% more time online than narrowband users during the month according to Nielsen//NetRatings, with narrowband users having an average of 26 hours and 13 minutes per person (see US Home Broadband Users Increase).

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