FMCG sector ups internet adspend

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.

Sign In

Trouble signing in?

Reset Password: Click here

Contact Customer Support at

Customerservice@campaignasia.com