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14 March 2006

Internet Ads

Many companies advertise on television or in magazines. But internet advertising is becoming more and more common.


REX BRIGGS, MARKETING EVOLUTION: It's amazing that it's taken this long for marketers to wake up and go, "Wow, 15 per cent of our consumers' time is being spent on the Internet and yet we barely have a presence there in terms of advertising."

MARTIN HOFFMAN, NINEMSN: We're still only at less than 4 per cent of marketing dollars being spent there, so the catch-up between those two forces is what's driving the growth.

ANDREW GEOGHEGAN: The Australian online advertising market grew 64 per cent last year. It generated $388 million in sales, more than cinema and outdoor advertising combined.

JAMES PACKER, PBL: From an advertising perspective, in my view, the debate is no longer about whether the Internet works as an advertising medium, but rather how to get the most out of it.

ANDREW GEOGHEGAN: Of those Australian homes connected to the Internet, more than half do so with broadband. That is prompting advertisers to spend even more on display ads, featuring moving images and interactive graphics.

MARTIN HOFFMAN: They can now run video ads, they can run audio and other flash animation ads which are very attractive to them.

REX BRIGGS: There is absolutely a difference in terms of how we as consumers use the Internet media. Sometimes it's in an entertainment and news mode and in that case display advertising works, because we're borrowing the time and attention of the media.

ANDREW GEOGHEGAN: Rex Briggs measures media effectiveness. He estimates Internet ad placements are priced at about half the value they should be and that inflation will kick in as demand increases.

What marketers need to recognise is that they actually need two different budgets set for search-based and display-based advertising if they want to really get the Internet right.

But as advertisers spend more on Internet, some are having second thoughts, concerned that they could or have become victims of online fraud. Given that advertisers are charged each time their ad is clicked in a search engine, there is the potential that they could be paying for clicks that are far from genuine.

GAVIN APPEL, HITWISE: Click fraud is where either individuals or automated programs click on paid listings within the search results for the pure purpose of increasing advertiser costs. The motivation is either financial gain or competitive advantage.

ANDREW GEOGHEGAN: Close to 11 million Australians now have internet access. While the advertising potential is obvious, media organisations such as PBL will need to find a balance across all forms of media as convergence technology begins to blur the lines between Internet, print and television.

REX BRIGGS: Most media will go the way of the Internet, in terms of their digitisation. That's why it's so important for marketers to figure out how to master this media today when the stakes are a lot lower before it comes to television - and it's coming faster than you think.


story notes

 taken
 
Taken is the past participle of the irregular verb take. Follow the link below to find out more and to listen to some examples.
 
more information: take

 market
 
Here, market refers to business or trade in a certain product.

 grew
 
Grow is the past tense of the irregular verb grow. Follow the link below to find out more and to listen to some examples.
 
more information: grow

 generated
 
To generate means to create or make.

 perspective
 
Perspective means point of view.

 debate
 
argument

 medium
 
Here, medium describes a platform or instrument for delivering something. The irregular plural is media. We can advertise on a range of media - television, radio, newspapers, cinema, or online.

 get the most out of
 
To get the most out of something is to take advantage of it and use it to the best of its ability.

 kick in
 
If something kicks in it begins to take effect.
 
Example: It takes a while for the pills to kick in.
 
For more meanings of the phrasal verb kick in, follow the link below to our language library.
 
more information: kick in

 click fraud
 
Fraud is the crime of obtaining money by lying or by tricking people.In this case, advertisers have to pay based on the number of people who click on their online adverts.

 individuals
 
Individual refers to a single person.

 automated
 
Automated means operated by a machine or a computer.

 paid listings
 
online adverts

 figure out
 
understand; work out
 
Example: I can't figure out how to fix it.