|
|
writenews.com
|
Wednesday, August 19th, 1998 Media Cynic | Forum | Advertising | Classifieds | Jobs Forrester: Worldwide Spending for On-line Advertising Will Reach $15 Billion by 2003 Steady growth in the world's on-line population and the arrival of mainstream advertisers will push global spending for on-line advertising to more than $15 billion in 2003, according to a new Report from Forrester Research, Inc. Forrester also expects to see during the next five years further consolidation among media companies, driven by dramatic gains in international markets, intense competition, and the Internet's economies of scale. Spending for on-line advertising will continue to be dominated by the United States, though international markets will gain a significant share of the worldwide total by 2003. Forrester estimates that U.S. spending for Internet ads will grow from $1.3 billion in 1998 to $10.5 billion in 2003. Despite this eightfold increase, the U.S. share of the worldwide market will decline from 87% in 1998 to 70% in 2003. International ad spending will be led by Europe, where the on-line market is expected to grow from $105 million in 1998 to $2.8 billion in 2003. This spending will be pushed by an increasingly cohesive European market, a growing Internet population, competition from U.S.-based companies, and maturing technologies. Slowed by ongoing economic difficulties, Asian ad spending will grow to $1.25 billion in 2003. Dramatic growth in Latin America will be masked by a small Internet population and a low starting point for ad spending. "The Internet has arrived as an accepted advertising medium," said Bill Bass, director of Forrester's Media & Technology Strategies service and co-author of the Report. "This is evidenced by the amounts that will be spent for on-line ads during the next five years, as well as by the arrival of large mainstream advertisers. The next challenge facing media companies will be developing the revenue opportunities presented by a growing international market." To succeed, media companies will need the high volumes that the international market offers to offset low on-line ad margins, which Forrester expects to settle near 10%. Media companies that arrive in a market early, partnering with local service and eCommerce providers, will gain a competitive advantage that will be difficult to overcome later. In particular, Forrester expects the major portal providers and service companies to play key roles in establishing global brands. "Traditional media companies that are late to the Internet can take advantage of the Net's unique dynamics by investing in global category-killers, partnering with best-of-breed local content providers, or buying up local resources to corner a particular category, like classified ads," noted Chris Charron, a senior analyst in the Media & Technology Strategies service and co-author of the Report. "Media companies with established tools and services should export them to gain an early share in emerging markets." In addition to the growth in overall spending, Forrester expects per capita spending for on-line ads in the United States to bypass radio and magazine ads by 2003. Internet advertisers will spend $25 per person in 1998 -- double the amount spent in 1997. By 2003, this number will grow to $104 per person, roughly one-third of per capita spending for television ads but slightly ahead of magazine and radio spending. The Report "Media's Global Future" is based on interviews with major global advertisers, advertising agencies, and media companies in Asia, Europe, and North America. To determine the current market size, Forrester estimated total ad dollars spent and then adjusted spending downward to account for reciprocal advertising, revenue sharing, and intra-industry spending. All three numbers are believed to boost reported U.S. numbers because new media valuations are linked to top-line revenues. Leda Sanford Named Editorial Director of Get Up & GO! Magazine Network Publishing veteran Leda Sanford, who became the first woman publisher of a major consumer magazine in 1975, assumes the role of vice president, editorial director for Age Wave Communications Corporation, publisher of Get Up & GO! magazine network, announced Ken Dychtwald, Ph.D., founder and chairman. Get Up & GO! is an upbeat lifestyle magazine for today's 50-plus adults. Published monthly, the two-year-old magazine network includes 45 editions with distribution of more than 1.5 million in 10 states: Arizona, California, Colorado, Florida, Iowa, Minnesota, Oregon, Texas, Utah and Washington. Sanford joined Age Wave Communications in 1993 as vice president of publishing, where she oversaw the development of custom publishing programs targeting niche mature markets for clients such as General Motors and Kemper. Immediately prior to that, she was marketing director of Modern Maturity. According to U.S. Census figures and Age Wave research, by the year 2000, the 50-plus population will increase by 12 million. In contrast, there will be nine million fewer 18 to 34 year olds than there were in 1990. In addition, the 72 million men and women in the United States age 50 and older represent 27 percent of the general population, yet control 70 percent of total net worth--nearly $9 trillion. They account for nearly 50 percent of all consumer demand. Healthy Living Content at LightCooking.com Information and advice on healthy cooking can be found at LightCooking.com. Tips and tricks, fresh recipes, a healthy lifestyle forum, and pages just for kids are available to help visitors learn more about nutritious, low-fat, low-cholesterol living. LightCooking.com brings together advice posted by folks from all over the world about a wide range of topics. Their comments and suggestions are brought together with those of LightCooking.com's founder, Heather Steinberg, to create a resource for information, ranging from the purchase of eggplants to the American Heart Association substitution list. The large nutritional and fitness tip archive also includes advice on microwaving, Bar-B-Qing, cookware, baking, and even ingredients. LightCooking's Q&A section states, "If I can't answer you, I'll find an expert who can." It is a general question bank of lifestyle inquiries, recipe and substitution advice, and also links to other useful sites. The Forum and Message Board offer ongoing discussions of such topics between readers. Explains Steinberg, "I created this site to encourage and support healthy living. It is both a resource and a place to come together with others to discuss and learn." Around the Web Out of Print and On the Web ABC News Oxford Dictionary Ads Net Terms News.com Poetry Sites Make Full Use of the Web's Power Montreal Gazette Publishing is Much More Competitive Today Boston Globe Click here to return to the homepage of The Write NewsTM Click here to subscribe to our free weekly email newsletter.  www.writenews.com Copyright © 1997-2007 by Writers Write, Inc. All Rights Reserved. |
