IAB Engage 2008: Online will remain strong through tough economic times

The internet will stay strong through the tough economic times ahead but businesses have to “get heir heads around the new rules”, Richard Eyre, chairman of the Internet Advertising Bureau, said at yesterday’s IAB Engage conference.

Eyre said that young business leaders working in the UK media industry have had their instincts shaped by 20 years of economic growth and it is important that they adapt to face the current challenges. “In the teeth of the financial storm young business leaders in the UK have got to get their heads around the new rules,” he said.

Although the environment for young media businesses is “far from kind” at the moment, Eyre said that as internet growth is powered by human behaviour this is something that will not be devalued by the downturn.

“The internet is becoming the primary source of information and entertainment and that will not change,” he added.

Eyre also pointed out that a very small percentage of online ad revenue is spend on traditional display advertising, while 95% is spent on ads trying to elicit a response.

In online advertising, direct response means having a conversation with consumers, said Eyre, adding that this is “extraordinarily significant” as any brand advertiser can now communicate directly with consumers.

IAB: 020 8683 955 www.iabuk.net