Swedish advertisers are placing greater importance on the internet as an advertising medium, with 72% of 89 advertisers questioned claiming to advertise online, according to a new survey from the Association of Swedish Advertisers (ASA).
Banners and co-op adverts were found to be the most common advertising medium, with more than half using search engine advertising.
eMarketer’s, Western Europe E-Commerce report, shows Scandinavian countries and the Netherlands to have the greatest internet penetration, with Sweden the leader at a rate of 74% in 2004 (see European E-Commerce Forecast To Rise By 40% In 2005).
A separate survey by the ASA, however, found a widespread dislike of online advertising among Swedes, with over half claiming to object to the medium, compared to just 8% who liked it.
Nine out of ten Swedish advertisers were shown to see online advertising as a complement to their traditional campaigns, with half saying they will increase online media budgets this year and 45% will spend as much as last year. The majority of advertisers however, 80%, spend 10% or less of their total advertising budgets online.
The Swedish media market is growing, with the Institute for Advertising and Media Statistics (IRM) annual forecast, released in June, reporting that in the first quarter of 2005 Sweden saw an increase in advertising expenditure of 5.1% year on year.
In the US, online advertising in 2005 is predicted to rise by nearly 34% to about $13 billion. Paid search is estimated to grow by 40% over the year to $5.4 billion, up from previous estimates of $4.7 billion, according to analyst eMarketer (see US Online Ad and Marketing Spend To Reach $14.7 Billion in 2005).
A report published earlier this year by Jupiter Research predicts US online adspend to reach $16.1 billion by 2009, almost doubling 2004’s figure of $8.4 billion (see US Online Adspend To Reach $16.1 Billion By 2009).
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