FMCG sector ups internet adspend
<p>HONG KONG: Advertising revenue is pouring into the internet from
</p><p>multinationals in Asia, eager to tap into high usage rates to drive
</p><p>sales and increase their brand exposure, a survey by International Data
</p><p>Corporation has found.
</p><p><BR><BR>
</p><p>With the bursting of the dotcom bubble, which was the source of so much
</p><p>online advertising in the past two years, traditional companies are now
</p><p>stepping in and picking up the slack.
</p><p><BR><BR>
</p><p>The study found that from 1999 to 2000, consumer-based retail producers
</p><p>increased their web adspend by 50 per cent, a figure that has continued
</p><p>to rise this year. It now stands at 29 per cent.
</p><p><BR><BR>
</p><p>Moreover, out of overall internet advertising in Asia, the figure for
</p><p>retailers has risen steadily from 17 per cent in 2000 to 22 per cent in
</p><p>2001. "There has been a massive shift between 1999 and 2001 in web
</p><p>advertising," IDC senior analyst, internet research, Matthew McGarvey
</p><p>said.
</p><p><BR><BR>
</p><p>"In Asia it was controlled by the dotcoms, IT and financial companies,
</p><p>but it is moving to a stronger consumer base. Online advertising is now
</p><p>viewed by traditional companies as a more viable form of advertising
</p><p>than one year ago. The audience is now there."
</p><p><BR><BR>
</p><p>Moreover, it is becoming a medium to reach out to customers. "Companies
</p><p>are getting satisfactory results that are based on sales. We have also
</p><p>found that more companies in Asia are beginning to view the internet
</p><p>with branding potential," McGarvey said. "This is a reflection of a
</p><p>maturing Internet market and the perception of Internet advertising in
</p><p>Asia. The Internet before was perceived to be a very tech brand
</p><p>medium."
</p><p><BR><BR>
</p><p>Media buyers have confirmed that consumer goods companies such as
</p><p>Unilever and San Miguel are getting in on the act by increasing their
</p><p>internet spend, especially on youth sites.
</p><p><BR><BR>
</p><p>In Hong Kong, 18-20 year olds are the most compulsive net users, with 30
</p><p>sessions a month, followed by the 21-24 age group with 27, and 12-17
</p><p>with 24, according to Neilsen//NetRatings. "Internet spending is up
</p><p>because traditional clients have been increasing their advertising
</p><p>spending in products targeted at youngsters," MindShare business
</p><p>director, Ralph Szeto, said.
</p><p><BR><BR>
</p>
by
|
07/06/2001
HONG KONG: Advertising revenue is pouring into the internet from
multinationals in Asia, eager to tap into high usage rates to drive
sales and increase their brand exposure, a survey by International Data
Corporation has found.
With the bursting of the dotcom bubble, which was the source of so much
online advertising in the past two years, traditional companies are now
stepping in and picking up the slack.
The study found that from 1999 to 2000, consumer-based retail producers
increased their web adspend by 50 per cent, a figure that has continued
to rise this year. It now stands at 29 per cent.
Moreover, out of overall internet advertising in Asia, the figure for
retailers has risen steadily from 17 per cent in 2000 to 22 per cent in
2001. "There has been a massive shift between 1999 and 2001 in web
advertising," IDC senior analyst, internet research, Matthew McGarvey
said.
"In Asia it was controlled by the dotcoms, IT and financial companies,
but it is moving to a stronger consumer base. Online advertising is now
viewed by traditional companies as a more viable form of advertising
than one year ago. The audience is now there."
Moreover, it is becoming a medium to reach out to customers. "Companies
are getting satisfactory results that are based on sales. We have also
found that more companies in Asia are beginning to view the internet
with branding potential," McGarvey said. "This is a reflection of a
maturing Internet market and the perception of Internet advertising in
Asia. The Internet before was perceived to be a very tech brand
medium."
Media buyers have confirmed that consumer goods companies such as
Unilever and San Miguel are getting in on the act by increasing their
internet spend, especially on youth sites.
In Hong Kong, 18-20 year olds are the most compulsive net users, with 30
sessions a month, followed by the 21-24 age group with 27, and 12-17
with 24, according to Neilsen//NetRatings. "Internet spending is up
because traditional clients have been increasing their advertising
spending in products targeted at youngsters," MindShare business
director, Ralph Szeto, said.
