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Internet becoming increasingly important ad medium
Reuters Story - October 20, 1997 11:11
%US %BUS %ADV %GB %DPR %PUB IPG WPP.L DELL V%REUTER P%RTR
By Leslie Adler
GENEVA, Oct 20 (Reuters) - The Internet is becoming an
increasingly important advertising medium as owners of personal
computers spend more time online surfing the World Wide Web and
less time watching television, new media executives told an
advertising conference here.
"The average hours per week on the Internet has doubled in
the last year in the U.S., rising to about 13 to 14 hours a week
(per Internet user)," Ira Carlin, executive vice president and
media director of McCann-Erickson Worldwide. "Think about the
impact that has when you're trying to reach your customers in
the United States," Carlin told the annual congress of the World
Federation of Advertisers late on Friday.
McCann-Erickson advertising network is owned by Interpublic
Group of Cos Inc .
John Hunt, chief executive of Syzygy, a London-based digital
media company partially owned by WPP Group Plc , stressed
that advertising on the Web demands a well-thought-out approach.
Companies that have used the Web effectively include Dell
Computer Corp , which is currently generating sales of
$3 million a day via its Web site (http://www.dell.com), and
Pedigree Petfoods, which is tapping into the fierce loyalty of
cat owners with its Waltham World of Pet Care site
(http://www.waltham.com), Hunt said.
Other sites, however, are filled with information and links
to other sites that are irrelevant to the company and fail to
build its brand strategy, Hunt said.
"The Web enables businesses and consumers to establish a
rapport, to interact and develop a dialogue," Hunt said. The
ability to communicate with customers that is necessary to
maintain a brand's strength is one of the key attributes of the
Web. "Handled correctly it's a marketer's dream," Hunt said. But
he warned that companies that fail to get their Web sites may
lose out to competition.
Revenues from advertising on the Web hit an annualised rate
of $850 million in the third quarter in the U.S.,
McCann-Erickson's Carlin said. Web advertising this time next
year is expected to reach an annual rate of $3.5 to $4.0
billion. Although that is still a fraction of television ad
revenues, it would already top radio ad revenues, Carlin said.
And while much of the advertising on the Web today is of
poor quality, that does not mean it will not improve. "Hey, we
were lousy at the beginning of television," Carlin said. "So
don't complain to me about the quality of the World Wide Web.
It's only three years old."
-- London Advertising Newsdesk +44 171 542 2815
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