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Australia’s Top Advertisers Demand Online

Sydney, NSW, March 13, 2002 - Clients are demanding that their agencies include online advertising as an integral component of the marketing mix, according to a report released today by independent researchers Taylor Nelson Sofres.

The research, commissioned by Australia’s leading online publishers, f2 Network, News Interactive, ninemsn and Yahoo! Australia & NZ, reveals that the majority of Australia’s blue chip advertisers are convinced that online advertising is effective with 70% of Australia’s top 150 Advertisers using online - and 25% of nonusers claiming they intend to use online advertising for the first time in the next six months.

“Companies like Telstra, CocaCola, Unilever, Proctor and Gamble and AMP are blue chip organisations that have traditionally used offline media. They’ve realised the power of online marketing and have jumped on board and embraced it because it can visibly and measurably deliver results,” said Mr Nic Jones, Managing Director, Yahoo! Australia & NZ.

The report states that nearly 60% of Australia’s top advertisers find online effective for meeting most marketing objectives with 40% of top advertisers now classed as “true advocates”, a group who use it regularly and find it effective.

“The research shows that our clients use the medium for multiple objectives – be it brand building or customer acquisition. What the figures don't reflect is that these companies no longer simply 'believe' Online Advertising works - those who have invested in understanding the medium know what works for them and how to get the most from their investment online,” said Mr Nigel Dews, Chief Executive of f2 Network.

The research also revealed that this high spending group of “true advocates” who allocate more than 5% of total ad spend online is set to significantly increase in number in 2002 increasing from 10% of top advertisers in 2001, to 17% in 2002, underscoring that further growth of the market is indicated.

“We are finding that clients who have used online successfully are returning with an increased understanding of its importance as part of their mainstream media purchase and in most cases are increasing their spend accordingly,” said Mr Warren Bright, Managing Director of News Interactive.

The report concludes that Agencies hold the key to unlocking more online ad dollars with only 24% of the top advertisers stating that their agencies recommend online advertising to them regularly.

Although Top Advertisers are keen to learn more, 70% of occasional internet advertisers agree that the level of information they were receiving from their agency with regard to online opportunities was “not enough”.

“Our focus as the major media players must be to work closely with agencies to increase their understanding and ability to recommend and develop online advertising as an important and significant part of every campaign,” said Mr Steve Vamos, Chief Executive Officer of ninemsn.

Ends

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