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Internet use on Smartphones surges - Advertisers follow crowds

by Jeni Bone on 22 May 2012
Smart Phones - larger smart resolution and screen sizes have dramatically increased internet connectivity MarineBusiness-World.com . http://www.marinebusiness-world.com
Around the world, as internet connectivity leaps ahead with the popularity of Smart phones and tablet technology, as well as soon to be commonplace web-enabled TV, online advertising is outstripping all print media.

Every year at TetraMedia we consider the likely information technology jumps in the five years ahead.
Every year we under-estimate the speed of change. Every year we become bolder, but we still fall short.

Last week's confirmation that the 2012 launched iPhone will have a 4.8' high resolution screens means that the explosion of mobile internet use will continue.

According to the latest report from eMarketer, for the first time ever, online advertising will surpass print in terms of spend, growing 23.3% to US$39.5 billion during 2012. In the US alone, online ad spending will post growth well above 20% this year to reach nearly US$40 billion, as the internet continues to prove its worth to advertisers in a tough economic climate.

Online is where the consumers research, compare and converse about products, from CDs to boats, and it's where advertisers are seeking to pitch their offering.

'Advertisers’ comfort level with integrated marketing is greater than ever, and this is helping more advertisers, and more large brands, put a greater share of dollars online,' said David Hallerman, eMarketer principal analyst.


Double-digit growth is expected through 2014, when US online ad spending will reach US$52.8 billion. In 2016, the eMarketer study anticipates advertisers will spend US$62 billion online.

Fast growth has put online ahead of some traditional media, especially print newspapers and magazines. This year, US online ad spending will exceed the total spent on print magazines and newspapers for the first time, at US$39.5 billion vs US$33.8 billion. And as online shoots up, the print total will continue to drop.

Technology is leading the push for online advertising. The share of adults in the US who own tablet computers nearly doubled from 10% to 19% between mid-December and early January and the same surge in growth also applied to e-book readers, which also jumped from 10% to 19% over the same time period - thanks to Christmas gift giving and the flow on by word-of-mouth recommendation.

The number of Americans owning at least one of these digital reading devices jumped from 18% in December to 29% in January. The numbers of adults in North America, Europe and the devolped countries of the Asia Pacific who own internet connected smartphones is well over 60%.

From a marine industry perspective, advertisers are migrating in rising numbers, turning their ad budgets upside down. Analysts are adamant that to avoid losing market influence and share of consumer attention, brands and retailers need to invest their ad dollars online.

Steve Allen, media analyst and MD at Fusion Strategy, says that in Australia, online advertising surpassed magazines 'two or three years ago' and is likely to overtake newspapers this year.

Allen asserts that in the marine sector, consumer activity and confidence online depends entirely on how people buy goods. 'They may research at a bricks and mortar retail level, then go online and compare, then buy, as long as they know they have the security of warranty or being able to get help if something goes wrong. There are many people who wouldn't be confident to buy online, but many, younger consumers who know what they're doing and do purchase from the net.'

The key to successful e-tail sites, says Allen, is that they are engineered with the consumer in mind. 'Some are clearly falling short, but the new generation of e-tail sites are putting consumers at ease.'

Allen says it's not all about buying online, as branding advertising 'is coming in to its own' amd advertisers become more adept at tailoring campaigns, including more frequently, video components, to the online space.



Thanks to the popularity of smart phones, tablets, laptops,netbooks and connected TV, the stature of the Internet as the number one media and information source is an absolute reality. Commentators and analysts forecast the net will overtake newspapers this year in Australia for their share of ad revenue, having already outstripped magazines three years ago.

While there is still a sentimentality for traditional media among consumers, advertisers are moving away in droves as circulations fall.

Advertisers who have yet to dip a toe in online advertising are missing out on the consumer wave of technology that accommodates branding, campaign and retail advertising, reaching the tech-savvy, cashed-up consumers who are confident to research and buy online. If you don't have at least 50% of your ad budget online, you are missing out on the key market growth area.

Marine industry groups wanting to reach the online market - are in the right place right now.

Companies wishing to further expose the Sail-World.com, Sail-World Cruising, Powerboat-World.com, FishingBoating-World.com and MarineBusiness-World.com Sail-World.com Volvo Ocean Race and Olympic coverage audience to their promotional and commercial news please contact our media sales representatives who will be happy to quote on a range of very cost effective media packages.

You can ring TetraMedia Headquarters +61249772116

For Asian industry groups call Guy Nowell +852 9680 7063 or email asiaeditor (at) sail-world.com for more details

For Australian companies call Phil Arane 0407 076 585 or email Phil (at) trademediaservices.com.au

For New Zealand companies call Colin Preston +6421 267 4842 or email nzsales (at) sail-world.com

For North American companies call Greg Nicoll 877-620-9373 or email gnicoll (at) kerrwil.com

UK and European companies contact Jeraldine Murphy +44 20 3286 3390 or email jjeda_murphy (at) tetra-media.com

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