Internet Penetration Makes Its Mark
The MediaTel INSIGHT Online Media Seminar, held yesterday in association with MediaGuardian earmarked the internet’s increasing presence in the media mix and it’s surge in popularity.
Globally internet penetration has increased by 182% since 2000, with a current penetration rate of 15.7%. Looking at the different markets, uptake rates vary, with penetration in the US placed between 68% and 80%.
Asia remains the market leader, with Japan and China leading the way. Internet uptake in Europe is also increasing in size, with the continent seeing some of the world’s highest penetration rates.
Looking closer at the UK, figures from the Office of National Statistic (ONS) claim that over half of all households now have internet access, with online users verging towards the younger male demographic.
Online advertising revenue is also growing at an impressive rate, with JMP Securities forecasting the medium to enjoy a strong performance over the next five years, predicting a global annual growth rate of 25%.
The UK has also enjoyed a strong rise in online revenue, so much so that figures released by the Internet Advertising Bureau (IAB) claim that 2005 saw outdoor overtaken by online for the first time.
Search targeted advertising has seen huge growth in recent times, with the media representing 40% of all online adspend in the UK. Globally this figure stands at $10 billion and expected to rise by 41% this year.
The search market is currently dominated by a few key players, with Google leading the field and forecast to outpace the market, seeing its search revenues increase by 58%.
Other areas covered on in the MediaTelINSIGHT Online Media Seminar, included Voice-over-Internet-Protocol (VoIP) and Internet-Protocol-TV (IPTV), both of which are predicted to enjoy solid growth over the coming years.
Despite recent advancements in the online industry, there is still no industry recognised audience measurement currency. However, the recent establishment of the Joint Industry Council on Internet Measurement Systems seems to be addressing this issue.
According to Hamish Pringle, director general of the IPA, the lack of an industry trading currency for online will become more apparent when the IPA TouchPoints Survey arrives at the end of March.
The MediaTelINSIGHT Online Media Report is available buy from www.mediatelinsight.co.uk/reports priced £225. The report features the latest forecasts and current marketplace dynamics for the Online market.