COMPARISON OF THE SPENDINGS ON ONLINE AND OFFLINE ADVERTISING IN ..

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20-21 November 2007 COMPARISON OF THE SPENDINGS ON ONLINE AND OFFLINE ADVERTISING IN HUNGARY AND THE CEE REGION www.kirowski.hu linked by isobar 2 600 professionals 92 offices 37 countries AnorakDigital www.kirowski.hu 2 20-21 November 2007 linked by isobar Online-offline advertising in Hungary&CEE CEE www.kirowski.hu 3 20-21 November 2007 linked by isobar Online-offline advertising in Hungary&CEE NIGHTMARE www.kirowski.hu 4 20-21 November 2007 linked by isobar Online-offline advertising in Hungary&CEE Worldwide online 2010 ~10% CEE is booming www.kirowski.hu 5 20-21 November 2007 linked by isobar Online-offline advertising in Hungary&CEE (western) Europe online marketing spending double 2006 – 2012 EUR 16 billion = 18% of total ad spending www.kirowski.hu 6 20-21 November 2007 linked by isobar Online-offline advertising in Hungary&CEE www.kirowski.hu 7 20-21 November 2007 linked by isobar Online-offline advertising in Hungary&CEE www.kirowski.hu 8 20-21 November 2007 linked by isobar Online-offline advertising in Hungary&CEE CEE internet penetration 2007: 12% - 64% Europe: 40%, EU: 54% www.kirowski.hu 9 20-21 November 2007 linked by isobar Online-offline advertising in Hungary&CEE Online advertising CEE: 0,3% - 7,8% (% of total ad expenditure 2007) www.kirowski.hu 10 20-21 November 2007 linked by isobar Online-offline advertising in Hungary&CEE Penetration/Online advertising Ratio hunt for consumers – smaller better www.kirowski.hu 11 20-21 November 2007 linked by isobar Online-offline advertising in Hungary&CEE 2006 2007 250 Million EUR www.kirowski.hu 12 20-21 November 2007 400 Million EUR linked by isobar Online-offline advertising in Hungary&CEE HUNGARY www.kirowski.hu 13 20-21 November 2007 linked by isobar Online-offline advertising in Hungary&CEE  www.kirowski.hu 14 20-21 November 2007 linked by isobar Online-offline advertising in Hungary&CEE www.kirowski.hu 15 20-21 November 2007 linked by isobar Online-offline advertising in Hungary&CEE 10 million people, 3,4 million online, 80% broadband access Online penetration 40% (2007,15+) www.kirowski.hu 16 20-21 November 2007 linked by isobar Online-offline advertising in Hungary&CEE Online 2007: 56 million EUR (7,8%) Total ad spending 2007: 710 million EUR │ │ │ │ Display Search Direct Listing 73% 8% 5% 15% │ │ │ │ Mobile, telco Banking Automotive FMCG www.kirowski.hu 17 20-21 November 2007 linked by isobar Online-offline advertising in Hungary&CEE Growth of online advertising in Hungary 14% of ad spendings in 2010 800 700 600 500 400 300 200 100 0 2006 fact 2007 est. 2008 est. 2009 est. 2010 est. online market share 16,0% 12,0% 10,0% 8,0% 6,0% 4,0% 2,0% 0,0% TOTAL advertising total online advertising Kirowski estimation www.kirowski.hu 18 20-21 November 2007 linked by isobar Online-offline advertising in Hungary&CEE online market share % 14,0% million EUR Search marketing (mainly PPC) is key driver Kirowski estimation www.kirowski.hu 19 20-21 November 2007 linked by isobar Online-offline advertising in Hungary&CEE Search vs display Kirowski estimation www.kirowski.hu 20 20-21 November 2007 linked by isobar Online-offline advertising in Hungary&CEE TOP sites, advertisers 2007 │ TOP publishers │ TOP advertisers (100-400% growth, 2007J-S/2006J-S) www.kirowski.hu 21 20-21 November 2007 linked by isobar Online-offline advertising in Hungary&CEE www.kirowski.hu 22 20-21 November 2007 linked by isobar Online-offline advertising in Hungary&CEE www.kirowski.hu 23 20-21 November 2007 linked by isobar Online-offline advertising in Hungary&CEE www.kirowski.hu 24 20-21 November 2007 linked by isobar Online-offline advertising in Hungary&CEE Trends Everything is changingfind something “To comparable, you have to go back 500 years to the printing press, the birth of mass media ... Technology is shifting power away from the editors, the publishers, the establishment, the media elite. Now it’s the people who are taking control” The Global Garden Digital is not a channel Everyone is connected to everyone else and all their interests Separation of time and content Consumer control “The deer now have guns” It’s not an audience, it’s a community Participatory media is a social phenomenon “…become part of the conversation” Consumer as creator Convergence and multi-tasking www.kirowski.hu 25 20-21 November 2007 linked by isobar Runaway train of technology Managing the control flip Online-offline advertising in Hungary&CEE Brands need to extend from buying time to creating time www.kirowski.hu 26 20-21 November 2007 linked by isobar Online-offline advertising in Hungary&CEE Brands that win will be those whose consumers tell the best stories 20-21 November 2007 www.kirowski.hu linked by isobar “This is not the end. It is not even the beginning of the end. But it is, perhaps, the end of the beginning” www.kirowski.hu 28 20-21 November 2007 linked by isobar Online-offline advertising in Hungary&CEE THANK YOU! peter.novak@kirowski.hu www.kirowski.hu linked by isobar

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