More NewsStudy: European Traditional Advertisers Still Wary of Web

Study: European Traditional Advertisers Still Wary of Web

In spite of research showing growing numbers of Internet users, traditional media buyers still view the Web as an also-ran to established mass media.

While European audiences are increasing the amount of time they spend on the Web, traditional advertisers are still reluctant to spend money online, according to a new study from Jupiter Media Metrix’s European unit.

According to the study, which surveyed 113 European advertisers last month, 40 percent of the companies polled said they do not plan to spend money online during 2001. Of the remainder, 42 percent said they are planning to spend 1 to 5 percent of their budgets online.

The findings come in sharp contrast to earlier Jupiter research that showed U.K. Internet users’ online time grew 20 percent during the past 12 months to 7 hours, and that 81 percent of Fortune 100 companies are now marketing online — up 21 percent from last year.

But as a result of the new research, Jupiter MMXI analysts said that European consumer brands are largely missing the potential of the Web — since they still view the Internet as an also-ran mass-market medium, paling in comparison to the reach of television.

Similarly, traditional firms risk “undervaluing the opportunities the Internet presents … if they use traditional media selection and performance criteria to evaluate the success of their campaigns,” said analyst Staffan Engdegard. “Brands should apply a targeted-marketing model better suited to the dynamics of the Internet than the mass-marketing model most are used to.”

Engdegard added that a better use of Internet buys would be to purchase inventory more on the basis of how consumers use each outlet, rather than on related content — and highlighted Nestle’s recent campaign on MSN Messenger for KitKat (“Have a break, have a KitKat”) which appeals to the young, obsessive IM user.

In a related way, L’Oreal tapped into Web users’ frequent searching for health and beauty information as a way to push its products to European audiences. As a result, the company rolled out sites mixing product placement with information sites.

“Brands need to develop online marketing and advertising as a distinct practice to optimize the potential of the Internet,” Engdegard said. “Whether it be through adding value, education, identifying new target groups, or even experimenting with new ideas and products, consumer brands cannot ignore the Internet.”

“Brand owners cannot ignore online advertising if they want to sustain or increase the overall time consumers are spending with their brands,” he added.

At any rate, the study would appear to confirm the decision of 24/7 Media, which earlier on Tuesday announced that it was cutting off funding to its European division, which was proving a cost burden on the firm.

Related Articles

GDPR: The role of technology in data compliance

Data & Analytics GDPR: The role of technology in data compliance

3w Clark Boyd
What companies can learn from the We-Vibe lawsuit about the Internet of Things

Legal & Regulatory What companies can learn from the We-Vibe lawsuit about the Internet of Things

8m Al Roberts
Has advertising arrived on Google Home?

Media Has advertising arrived on Google Home?

8m Al Roberts
Is Twitter slowly dying?

More News Is Twitter slowly dying?

9m Al Roberts
FedEx launches fulfillment service to take on Amazon

Ecommerce FedEx launches fulfillment service to take on Amazon

9m Al Roberts
Target is the top retail digital marketer, so why is it struggling?

Ecommerce Target is the top retail digital marketer, so why is it struggling?

8m Al Roberts
YouTube is "on pace to eclipse TV" thanks to savvy algorithm use

More News YouTube is "on pace to eclipse TV" thanks to savvy algorithm use

9m Al Roberts
YouTube is getting rid of 30-second unskippable pre-roll ads

Ad Industry Metrics YouTube is getting rid of 30-second unskippable pre-roll ads

9m Al Roberts