KPMG Sings The Praises Of Internet Advertising

KPMG has produced a report that looks at the benefits of advertising on the Internet. It sees five main benefits to on-line advertising.

1 The Internet allows interactive ads and measurement response.

2 It is a cheap advertising medium.

3 The Web never sleeps, ads on the Net are available 24 hours a day.

4 It is easy to target on-line ads to specific groups or individuals.

5 There is a potential global audience.

The report then goes on to breakdown Internet advertising revenue. UK publishers grossed £700,000 from Web banners in 1996, while sponsorship played a greater part in the overall UK market, accounting for just over £1 million in this period. Recruitment advertising drew little significant revenue and classified advertising was judged to be too difficult to measure at this stage.

Although these findings are not very encouraging, KPMG remain optimistic about the potential of the Web. They see sponsorship as an attractive model for content providers as it reduces the need for a sales force and has proved to be the most profitable revenue source.

Following the initial promotion, KPMG advise site managers to maintain contact with advertising clients. This should be done either through a dedicated in-house sales team, an agency sales representative or one of the growing number of Internet sales networks. The most important commercial aspect of any site, argue KPMG, is the ability to provide accurate reports on site traffic, in terms that will help the advertiser or the sales network. It is important to remember that Web advertising will not sell itself, it requires extensive planning and heavy promotion.

KPMG:0171 311 1000