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Thursday, November 16, 2006

The Growing Importance of Online Marketing (Part 1 of 4)

From highly realistic and interactive product demonstrations to lively online communities; online marketing as we know it is taking on a whole new look. Whilst the region has typically lagged behind in Internet growth, this is a trend that is quickly changing.

The number of Internet users in Asia Pacific is expected to top 560 million in 2009, with penetration rates for countries such as Australia, Hong Kong, Singapore, and New Zealand around the 70 per cent mark, and South Korea leading the pack at 90 per cent (according to PricewaterhouseCoopers Global Entertainment and Media Outlook 2005-2009). A majority of these connections will be on broadband signaling more efficient access and greater convenience and possibly higher subsequent adoption.

If Singapore’s numbers are indicative of the more mature markets in Asia Pacific, people are spending almost as much time online as they are watching television programs and definitely more than on other forms of traditional media such as radio and print.

Increased Spending on Online Advertising

According to Carat’s Global Market Update (June 2006), Asia’s advertising expenditure is growing faster than the global rate – 6.4 per cent versus 5.7 – and is expected to overtake Europe’s in spend terms by 2008. This phenomenon can be attributed to the fast expanding online advertising pie. In Korea, the Internet will be the third biggest advertising medium this year after television and newspapers.

....To be Continued

Earl

Excerpted from the November issue of AdAsia