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>