Feature: Jumping On The Broadband Wagon
Until now UK consumers have been relatively slow to catch on to the benefits of high-speed internet access, with steep connection charges deterring all but the early adopters. However, the broadband roll-out is rapidly gaining momentum and with penetration increasing, advertisers are beginning to realise the potential of broadband Britain.
Figures from Continental Research show that the majority of at-home internet users favour a traditional dial-up connection (88%), with relatively few opting for ADSL, ISDN or cable (12%). However, consumer interest in broadband is increasing and forecasts suggest that around 700,000 homes plan to upgrade to a high-speed connection within the next twelve months.
According to Continental’s Summer 2002 Internet Report, around 23% of the UK’s internet population have expressed an interest in upgrading to a faster connection (see below), with ABC1s and those aged between 15 and 34 showing the most enthusiasm. Colin Shaddick, who helped to compile the report, argues this is “great news” for advertisers. He says: “Young ABC1 males tend to be more responsive to online advertising. They are more likely to embrace internet culture, make purchases online and engage in activities beyond just surfing.”
Those identified as the most likely to upgrade to broadband are currently among the heaviest online spenders. The figures show that 15 to 34 year-olds made a total of £490m worth of transactions over the internet in the last twelve months, with ABC1s spending £322m. This compares to £283m for the over 45s and £260m for C2DEs (see below).
As well as giving brands access to a desirable demographic, Shaddick argues that high-speed internet connections will change the face of online advertising, bringing a greater level of creativity to the medium. He says: “Faster connection and download times will make the internet a much more powerful communications medium, bringing brands closer to their target audience and making electronic advertising less intrusive.”
Chief executive of the IAB, Danny Meadows-Klue, also feels that high-speed connections will lead to greater sophistication within the medium. He says: “Broadband will allow creative directors to come closer to a television experience within the advertising content. It will also expand the scope of the interactive artwork formats that we call ‘rich media’ to become even bolder. We will see more interactive games within adverts and more adverts that act as mini shop windows into another website.”
Research from NOP suggests that cost is currently the biggest obstacle to the take-up of high-speed services for 25% of British internet users. However, an increasing number of players are entering the broadband market, leading to rapidly falling connection charges. Telecoms regulator, Oftel, predicts that increasing competition will continue to drive growth and estimates that uptake will continue at the rate of around 20,000 new connections per week.
Shaddick also believes that the market will expand significantly over the coming months. He says: “Up until now broadband uptake has been particularly slow, but the last few months have shown that the market is hungry for high-speed connections. More and more people are becoming familiar with broadband at work, they are getting used to its benefits and are demanding it at home.”
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