The online advertising market grew by 50% in the first quarter of the year compared to the same period of 2003, according to the figures of the four largest online publishing companies.This was stated last week by Sándor Mester, advertising director of Axelero Internet Rt’s media branch, and Balázs Weyer, chief editor of internet portal origo.hu.
Axelero, Index.hu Rt, Ringier Publishing Kft and Sanoma Publishing Kft agreed at the beginning of this year that they would publish their total online advertising revenue figures in each quarter. As the companies intended to show their real advertising figures taken from the ad cake, the figures do not include the value of barter deals, revenues from increased-fee SMS messages, or income from online direct marketing, consultation and other services, Mester explained.
“The index is a milestone for the online advertising market, as previously only estimates were made of the size of the market,” the companies said in a press statement. “Now it has become measurable because of the four largest publishers controlling 60%–70% of the market, and it will provide more accurate figures to advertisers as some other online publishers expressed their intent to join the initiative.”
“Knowing the exact figures is important for the market’s development, as it proves that this segment is growing more dynamically than the advertising market as a whole,” Mester said, adding that the latter saw 10% growth during a year, while on the internet 50% more ads were sold than in the same period of last year. In the first quarter of 2004, the total revenue of the four largest publishers from internet ads was Ft 337 million.
The first three months of the year typically represent a small proportion of the whole year’s results, so the growth in that period should not be projected for the whole year, noted Weyer, adding that origo.hu predicts 35%–40% growth in the online advertising market for the whole year.
Counting hits
Another important development concerning the measurability of the market is the fact that new technology introduced by internet auditor Medián WebAudit can measure the number of times a portal is visited, the executives said.
“Unlike the printed media, the fact that the readership of the internet can be measured by exact technological tools, and not only by polls, strengthens the advantage of the internet,” Mester said.
Some industries have already recognized the significance of the online market, the executives said. In origo.hu, the volume of ads from the automotive sector increased by 100% in the first quarter of the year compared to the same period of 2003. Some polls showed that in the case of a very high number of car purchases, the internet is used as the main source of information. In general, advertisers are paying increasing attention to the buying habits of internet users, and put together their advertising portfolios accordingly.
Meanwhile, sponsored link revenues of web browser Vizsla increased by 100% in the first quarter of 2004 compared to the same period of 2003, as small and mid-sized enterprises recognized the popularity of the site.
Together with banner ads, sponsoring ads connected to certain pages or columns has also become increasingly popular.
The popularity of online media and the attitude of advertisers strongly depend on the number of those with internet access and what types of access they have, according to the executives.
The spread of broadband connections is favorable for online content providers, as during the same period of time people read more pages. Three years ago, people visited 2.5 pages on average at one sitting, while now they visit 11–12 pages on average. In addition, the average time spent on the internet is five times as much as it was three years ago.
by Anita Benko
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11.05.2004