When Sars hit, residents reduced their outdoor activities, and spent more time online searching for news, medical information, shopping, and banking. And dotcoms finally figured out a way to monetise all those 'eyeballs' they didn't know what to do with four years earlier.
Now, online users pay small amounts online to download mobile ringtones, play network games, and subscribe to information-based services.
The most dramatic news for marketers is that online ad revenue in the US started growing again, hitting a whopping US$2.2 billion in Q4 of 2003, beating the 'bubble' level of US$2.1 billion in Q4 of 2000.
According to IDC, Asia-Pacific is not far behind, with online ad revenue soaring over 400 per cent to US$1.6 billion by 2007.
More than ever, marketers are under pressure to show quantifiable return on marketing investment. Because of this, the internet is being put back in the spotlight, given its measurability, targeting and cost-effectiveness.
The epitome of this trend culminated in the US with the rise of paid search advertising, arguably the hottest thing on the internet. According to eMarketer, paid search comprised of approximately 30 per cent of US online ad spend in 2003 - the major reason for the online ad revival.
IDC claims it will also be the key driver for online ad revenue growth in Asia. Advertising with ROI upfront was unheard of untill now, thanks to a well-placed text ad.
A year-and-a-half ago, I wrote a Media column urging online marketers to use traditional media lingo and buying practices to gain acceptance.
Now, online is either being accepted as part of the media mix, or is seriously being considered. A year in internet time makes a lot of difference.
Internet usage will not only continue to increase, it'll eat into traditional media usage. In Hong Kong, the average time spent on TV was 3.07 hours per day, newspaper was 0.76, magazine was 0.05, and internet was 0.77, according to Nielsen. The question then is, why does the online ad budget typically have less than five per cent of the media budget when its proportion of usage is far greater in the media mix?
It's rare to see a person in Hong Kong or South Korea who doesn't own a mobile phone. In developing countries like China, mobile penetration is increasing by leaps and bounds. With mainstream penetration, it is quickly becoming the primary, if not sole, means to get online for many.
Marketers will start experimenting with ways to reach out to the mobile consumer, whether directly through ads or indirectly through experiences such as games and branded logo or ring tones.