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IN BRIEF
European
internet
BATTLE IS ON FOR
advertising
DIGITAL TV LICENCES
exceeds
The heat is on as three consortia — all with heavyweight broad-
casting credentials — wait to hear if they have won out in the
battle for the three digital television (DTT) licences due to be
Alain Heureux€11bn
awarded by the Broadcasting Commission of Ireland in mid-
July. The competition is particularly intense as each of the
Europe is fast closing the gap on the US in terms of online
bidding groups will be hoping to be awarded all three of the
advertising. The European online advertising market grew by
multiplex licences.
40pc in 2007 to reach €11.2bn. In the US, meanwhile, the
The Boxer DTT consortium, consisting of Denis O’Brien’s
market increased by 26pc to reach €14.5bn.
Communicorp group, BT Ireland and Swedish DTT operator
A report compiled by Interactive Advertising Bureau (IAB)
the Boxer Group, proposes to provide a €10 a month basic
Europe in collaboration with PricewaterhouseCoopers pre-
offering with access to pay-as-you-go channels. Easy TV,
dicts the European online market will sustain the 40pc-a-year
backed by RTÉ and cable TV firm UPC, plans to host 35 chan-
growth, despite predictions that traditional media may be
nels. The OneVision consortium, meanwhile, which includes
affected by an economic slowdown.
broadcasters TV3, Setanta, Eircom and technology company
Two thirds of European ad budgets — worth €7.3bn —
Arqiva, says it will offer 29 channels, including six that will be
was spent in the big three markets of the UK, Germany and
free of charge.
France. However, a number of smaller markets covered in the
report enjoyed extremely high growth rates, including 91pc for
Greece, 55pc for Spain and 49pc for Slovenia.
“We are well on the way to achieving the ‘10 before 10’ —
Newspaper circulation
that is, 10 European countries where online advertising
accounts for at least 10pc of overall ad spend by the year
2010,” said IAB Europe president Alain Heureux. “At the end
shows growth
of 2007, Denmark, Germany, The Netherlands, Norway,
Global newspaper sales were up 2.57pc in 2007 and have
Poland, Sweden and the UK had all reached this milestone.”
increased by 9.39pc in the past five years, according to the World
Using a new ‘spend per user’ metric to illustrate the value
Association of Newspapers (WAN). Taking free dailies into
of an internet user to an advertiser in various markets, it found
account, meanwhile, boosts circulation growth to 3.65pc last year
the European average was €80.60. In Norway, this was
and 14.3pc over five years. Free daily newspapers make up
€133.20 per person, followed by the UK at €120.80 and nearly 7pc of all global newspaper circulation and 23pc of circula-
Denmark at tion in Europe.€109.50.
IAB said the more mature the market, the higher the value According to WAN, advertising revenues in paid dailies
placed on the internet by advertisers. Sectors spending the increased by 0.86pc in 2007 and 12.84pc over five years. The
most on online advertising are entertainment and leisure, tele- association said print remains the world’s largest ad medium, with
coms and finance and insurance. a 40pc share.
Internet video views up 64pc year on year in US
Online video viewing experienced a 64pc jump from a year ago, Fox Interactive Media ranked second, with 477 million videos
web analytics firm ComScore has said. Some 11.5 billion videos viewed (4.2pc market share), followed by Yahoo! sites with 328
were viewed on the internet in the US in March. The figure is a million (2.9pc market share). Next in line was Viacom Digital, which
13pc gain on February 2008. had 249 million videos viewed, representing a market share
Google sites were the top US video property, with more than 4.3 of 2.2pc.
billion videos viewed (38pc market share), 98pc of which were Microsoft sites came in fifth, with 2.1pc of market share, at 245
accounted for by YouTube. million video views.
8 Marketing Age May/June ’08er ’07
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