EIAA Bob Ivins

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EIAA - European Media Consumption Increasing the role of the Internet as an advertising medium EIAA – Bob Ivins

EIAA Media Consumption Study II: 

EIAA Media Consumption Study II An annual survey of media consumption patterns across Europe based on consumer attitudinal data Objective: Measure how consumers allocate their time across media options: TV, Radio, Newspapers, Magazines and the Internet Methodology: Random telephone interviews Nationally representative sample 1000 respondents per country: UK, FR, DE, ES and IT 500 respondents per country: Belgium, the Netherlands 333 respondents per country: Denmark, Sweden, and Norway Fieldwork completed September to October 2004

Penetration by Media Type: 

Penetration by Media Type Percent Of Respondents TV remains the media of choice for most consumers with 96% of those studied watching something during a typical week Penetration by Media Type Base: All respondents In a typical 5 day week, do you watch TV, read a newspaper or surf the internet? (note Magazines and Radio was during a typical 7 day week) (7112)

Internet Usage Days: 

Internet Usage Days Usage Days per Week Percent Of Internet Users Among those online, 40% claim daily usage Internet Usage Days Base: Internet users You stated you have internet access, during a typical 7 day week how many days do you go online? (3440)

Allocations by Media Type: 

Allocations by Media Type In a typical 7 day week, approximately how many hours do you spend in total using the Internet, TV, Radio, etc? Percent Of Sample By Media Time Spent per Week Less than 5 hours 6 to 15 hours 16 to 25 hours More than 25 hours Per week Print (magazines and newspapers) have the lowest ‘involvement’ levels with 60% or more of readers spending less than 5 hours per week reading Base: Users of each medium (3440) (6840) (5646) (3870) (5511)

Time Spent by Media Type: 

Time Spent by Media Type Average Media Consumption by Media Type Average Hours Average Hours By Media Type The average internet user spends more than 10 hours online per week (6840) (3440) (5511) (3870) (5646) Base: Users of each medium In a typical 7 day week, approximately how many hours do you spend…?

Average Allocation by Media: 

Average Allocation by Media Of all the time Europeans spend consuming media (reading newspapers and magazines, watching TV, listening to radio or surfing the Web) 20% of is allocated to the Internet Base: Users of each medium Radio 29% Internet 20% TV 33% Magazine 8% Newspaper 10%

Cost of Increased Internet Usage: 

Cost of Increased Internet Usage One third of Europeans are watching less TV as a result of increased Internet usage One in four talk on the phone less, read fewer magazines and newspapers ‘Cost’ of Internet Usage by Activity Base: Internet users Which of the following do you do less often as a result of using the Internet? (3440)

Conclusions – Media consumption: 

Conclusions – Media consumption The EIAA study reveals a rise in the amount of time people spend online with the Internet now accounting for 20 % of Europeans’ media consumption. The study places the internet above both magazines (8%) and newspapers (11%) in terms of media allocation and not far behind radio (30%). Among the increasing number European internet consumers, 42% are online every single day and 1 in 10 claim to spend at least 25 hours a week surfing the web. TV continues to represent the largest share of peoples’ media time at 33% but over a thirds of those online claimed to watch less TV as a result of using the internet. Overall, the results quantifies the growing importance of the internet in the lives of most Europeans. With the achieved online penetration and usage frequencies, it is clear that the internet is taking a larger and larger share of people’s media consumption.

Outlook: 

Outlook

Online Advertising: The Past: 

Online Advertising: The Past In October 1994, the first ads appeared online on Hotwired.com in the 468 X 60 format and success was measurement by Click Thru Rate

‘Were going to party like is 1999’: 

‘Were going to party like is 1999’

Online Advertising: The Present: 

Online Advertising: The Present

Online Advertising: The Future: 

Online Advertising: The Future Strong growth in broadband connections across Europe and the increasing use of ecommerce is resulting in consumers spending more time online at the expense of more traditional media (TV, radio, newspapers). For many European consumers, the internet is becoming the primary media consumed – the internet accounts for 20% of total media consumption. With one in five media hours now spent online, it is clear that online’s share of media spend will have to rise rapidly if advertisers are to reach their audiences most effectively. If current solid underlying trends continue (broadband, media consumption, internet penetration) EIAA expect online to account for between 15% and 20% of the European advertising market by 2015. The EIAA expects European online ad spend to treble in the next four years, accounting for 7% of total advertising spend by end 2008 2004* 2008 * according Euromonitor Reasons for growth:

EIAA Pan Europe Recommendations: 

EIAA Pan Europe Recommendations Consumers devote 20% of their media activity to the internet and yet online advertising makes up only 3% of advertising spend on average. Some advertisers are spending more online, such as BMW who devote 15% of their advertising budget to online. The vast majority, however, are not doing enough online. Advertisers and their agencies need to find and follow their audiences. What this research indicates is that people are spending an increasing amount of their media time online. The average person in Europe spends one out of every five media hours online. Marketers who are not online are missing out. This means that the internet has become a key channel for reaching and connecting with consumers and should be an increasingly key element in communications and media planning. At the same time, the internet is now a rival to other media and with always on and mobile technologies emerging, we can only expect this trend to continue.

Thanks for your attention!: 

Thanks for your attention! EIAA European Interactive Advertising Association www.eiaa.net Bob Ivins bivins@comscore.com + 44 7771 725 944