Research by Analysys International shows that Chinese online spend rose to Rmb 2.8 billion (US$410 million), including Rmb 1.4 billion of display spend. Those figures followed a second-quarter financial report from Sohu, official internet partner of the Games, that showed a 53 per cent rise in ad revenue.

The question the online sector faces is whether those levels of growth can be sustained after the Olympics. Jimmy Poon (pictured), MD of Púca China, believes growth rates will slow. “Overall digital spend is increasing, the Games simply accelerated it temporarily, so we have a preview of what the spend level will be like a few quarters from now,” he said.

Brian Stoller, regional business director for MindShare Interaction added that the Olympics should spur the development of the online video industry, with considerable coverage of events online.

Source: brandrepublic.asia

The media group’s ‘This year, next year’ forecast predicts that the combined spend for internet and other digital advertising (principally mobile and LCD screens) will reach $3.6 billion this year, and $5.2 billion in 2009. In contrast newspaper adspend is projected to show steady, if modest, growth from US$3.2 billion in 2007 to $3.6 billion in 2009.

The adspend for out of home, meanwhile, is expected to reach $3.1 billion in 2008, growing slightly to $3.9 billion by the end of 2009.

The boom in digital advertising is partly responsible for the declining share of total media occupied by television. While TV will remain the dominant medium in terms of advertising dollars (projected to rake in almost US$20 billion in 2008 and $23 billion in 2009), its share of total media is set to decline, from 65 per cent in 2007, to 63 per cent in 2008 and 61 per cent in 2009.

Source: www.brandrepublic.asia

Internet Advertising Trend No. 1:
Using the power of individual expression

It is no secret that users get tired about pure banner advertising more and more. But still banners are an important means to reach a mass of consumers. However, banners are just superficial touchpoints, the deep effect lacks. But there is a way out of this dilemma: Combined with web 2.0 approaches a brand can develop real brand embassadors who deeply engage with a brand and spread it on the Internet.

But how to create these brand promoters? Make use of the power of the human pool of creativity (crowdsourcing), integrate the consumers into your brand by letting them contribute with their ideas and individuality. Interact with the consumers, challenge and reward them. Use these sticky consumers in a clever way, don’t exploit them.

Why should it work? Many people want to express themselves in an individual way, especially true for a society where self-expression has rather been restricted than fostered. This need could be expressed in a personal dressing style, for example, but the easiest and most anonymous way is the Internet.

Which tools and concepts can be used? blogs (especially in China a powerful instrument of opinion building), video contests, creative idea collection (e.g. write songs, texts, design motives or products, etc.), always combined with a poll so that the users themselves can elect the best input and not to forget the reward which needs to be special itself and a real motivation. Special-interest community models where users can design and define their personal page, get answers and exchange with like-minded people.

Internet Advertising Trend No.2:
Measurement and conversion tracking

The return-on-investment (ROI) of marketing spendings will become increasingly important for advertisers. Marketing budgets won’t be spent without fulfilling predefined goals, e.g. increase in brand awareness, lead generation or online sales. Click rates are definitely no conversion, the ROI must be defined as a real value for the advertiser.

Closely related to optimizing the return on investment is the target group matching, which means to buy relevant traffic and not mere reach any more. Quality, not quantity brings your brand conversion and awareness. The target group of the advertiser has to fit to the target group of the media, the product or service advertised needs to fit to the advertising channel.

Internet advertising and website development will be seen as integrated disciplines. Reporting and tracking results will be analyzed and flow back into the optimization of the marketing campaigns and the website funnel.

With the increase of e-commerce and the availability of conversion points on websites (lead form, online sales process), performance marketing will play an increasing role, giving search (SEO and keyword advertising) and affiliate marketing more demand. Banner campaigns and eDM advertising will be based on conversion calculation as well.

Internet Advertising Trend No.3:
Integration of online and offline activities into the marketing and sales strategy

Online advertising is part of the overall marketing strategy. Any marketing activity will pay into the brand value or marketing goal, no matter if online or offline. Using a single online marketing channel is not a comprehensive strategy. Instead, offline sales channels like offices, point-of-sales (POS) are integrated into Internet advertising campaigns in a way that e.g. traffic can be drawn from the customers in the local shops to boost a website. On the other hand, a website can generate leads which will be converted by local sales offices into sales.