Feature: Online Advertising For The Masses
Over 12.6 million UK homes now have internet access and with the increasing popularity of broadband creating a range of new opportunities for advertisers, the internet is well on its way to becoming a mass market medium.
The Autumn 2003 Internet Report from Continental Research shows that the proportion of adults with at home internet access has increased to just under 40% over the last year. More than half of these 19 million users are under 44 years of age and a similar proportion can be described as white collar (ABC1).
It is also estimated that 37% of UK individuals aged 15 and over has access to the internet at school, or in the workplace meaning that advertisers can reach busy consumers in a range of different locations. Coca Cola recently took advantage of this and launched an online campaign in the US to encourage worn out workers to take a well deserved Diet Coke break.
Continental Research calculates that more than 21 million Britons, or 44% of the population, are now regular internet users, representing an increase of 68% over the last three years. This growth has led to an increase in revenue from online advertising and latest figures from the Internet Advertising Bureau shows that UK internet adspend rose by 18.7% year on year during 2002 to almost £200 million.
Jean Paul Edwards, head of new media at Manning Gottlieb OMD, says: “Online is definitely turning a corner. It’s all very positive advertisers are definitely coming online. Over the past 13 months more and more brands have come on board and the internet has passed an important psychological barrier.”
With more people online than ever before the internet is gradually becoming an integral part of daily life for many consumers. An increasing number of users are seeking a richer online experience and are going beyond simple Google searches to take advantage of electronic photo albums and online banking.
Internet audience growth is booming and more blue chip advertisers are turning to the internet. However, Edwards disagrees with the fact that the internet is becoming a marketing medium for the masses. He says: “You can’t simply say that the internet is becoming a mass market medium, because it is used in a far more targeted manner than other advertising channels. The internet is a very well used medium, but it is made up of numerous small, specialised, often niche markets rather than one mass market.”
The eclectic, specialised and personal nature of the internet clearly provides advertisers with opportunities to reach highly specific audiences, which may not be catered for by more mainstream mediums. The rapidly advancing broadband market and the increasing popularity of rich media advertising formats also look set to make the online experience more fulfilling for marketers.
The high-speed advantages of broadband, combined with the aggressive marketing initiatives of the likes of BT, Freeserve and AOL have led many consumers to abandon their dial-up connections. This migration has intensified over the past year and Continental Research claims that the number of UK homes with broadband has increased from 750,000 in 2002 to 2.4 million today.
The growth of broadband shows no signs of abating and the research reveals that one third of narrowband users are likely to upgrade to a more sophisticated connection in the next year. The faster speed and increased capability of broadband will create a wealth of opportunities for advertisers and many predict it will help to move the medium further towards the broadcast model.
However, Edwards claims internet advertising will continue to be distinctive, with its highly targeted focus. He says: “Broadband will change the look of internet advertising and some ads, as we are already seeing, will appear more like TV commercials. However, with TV the demographic is much less specific and online broadcast ads can be tailored to a specific audience.”
It appears that in spite of the huge growth in audiences and the increasing opportunities offered by broadband internet connections, online advertising still has some way to go before it becomes a truly mass market medium. However, the internet continues to provide advertisers with a wealth of niche audiences allowing them to bypass the one size fits all model of television and radio commercials.
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