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Q: What is the web advertising spending in Chile, India ( Answered 5 out of 5 stars,   0 Comments )
Question  
Subject: What is the web advertising spending in Chile, India
Category: Business and Money > eCommerce
Asked by: needresearch-ga
List Price: $25.00
Posted: 29 Jun 2002 21:04 PDT
Expires: 29 Jul 2002 21:04 PDT
Question ID: 35049
What is the web advertising spending in each of these countries Chile,
Brazil, Argentina, Germany, and India?
Answer  
Subject: Re: What is the web advertising spending in Chile, India
Answered By: umiat-ga on 05 Jul 2002 16:05 PDT
Rated:5 out of 5 stars
 
Hello, needresearch-ga!

I’ve spent quite a bit of time researching internet advertising
expenditures for the countries you requested. I have found the most
up-to-date information I can, though I must admit, I would have been
happier with more recent statistics for most countries. Unfortunately,
the most recent statistics, if available, can only be accessed through
costly, private reports. However, the following information should
provide some answers to your question.

Germany

     A recent forecast by Datamonitor predicts the German online
advertising market will “reach nearly USD1.9 billion in 2005, an
increase of 348.1 percent since 2001.” This indicates that the
“compound annual growth rate of the market for the period 2001-2005
will be 45.1 percent.” Contrast these numbers with the year 2000, when
the German online ad market was worth USD341 million.
http://www.nua.com/surveys/index.cgi?f=VS&art_id=905357868&rel=true

     In 2001, Datamonitor pronounced Germany as the leader in the
European online advertising market, with banner ads contributing the
dominant source of revenue.
http://www.datamonitor.com/~870579b6175d465a858c43a952fb7827~/all/capsules/markets/product.asp?pid=EAF91ED2-FFB8-4E45-BC22-41F4BFED2997&url=-SECTION1.HTM&free=free&menu=1&li=False

     Additional information from Forrester Research  reveals that the
consumer goods market contributed the major share of online
advertising in Germany in 2001, comprising 24 percent of the total
online spending. The major spender in Germany in 2001 was TooJoo, an
online gift shop, which spent 381,000 Euros on internet advertising.
http://cyberatlas.internet.com/big_picture/geographics/article/0,,5911_574661,00.html

     A press release by Forrester Research concerning future online
advertising predictions in Europe (including mention of Germany) can
be found at http://www.forrester.com/ER/Press/Release/0,1769,721,00.html

India

     Recent figures for online advertising in India proved hard to
find. The only data I could find was a 1999 article, in which Sunil
Rajashekhar, vice-president of Times of India,  predicted India net
advertising to reach $3.75 million in 2000. The article may be found
at http://www.internetnews.com/bus-news/article.php/224701
     Web advertising in India is still “all about potential and
waiting,” according to a 2001 article published by Dataquest. The
small user base in India, inadequate infrastructure,  the lack of a
“matured pricing model” and the unpredictability of returns are all
barriers to the growth of the online advertising market. However, the
fact that India could have over 50 million internet users by the end
of 2003 leaves India with a bright future.
http://www.dqweek.com/content/search/showarticle.asp?artid=20801&way=search
     In 2001, Merrill Lynch considered India’s advertising market to
be “in better shape than most global markets” with a concurrent rise
in “online advertising from consumer goods, automobiles and insurance
companies.” http://www.ciol.com/content/search/showarticle.asp?artid=20975&way=search
    Gartner India, in a 2000 survey among Indian internet users, found
that banner ads are at the bottom of the heap when it comes leading
users to new websites. Web-site links are down on the list, as are
most forms of web advertising. In fact, most Indian users find out
about new sites only by word of mouth, and those surveyed rarely visit
new sites at all! (Maybe this is the reason internet advertising
statistics for India are so scarce!)
http://www.internetnews.com/bus-news/article.php/224701
     A study produced by Renaissance Management in June 2000, entitled
“NetSenseTM - An exhaustive study of the usage and attitudes of the
Indian internet user”, says “Recall and click throughs for internet
advertising are still very low. A number of advanced users tend to zap
advertisements while browsing. The sustainability of advertising
models may be suspect for all but the very top sites.” A brief summary
of the report and a link for purchase is available at
http://allnetresearch.internet.com/item/0,,45071_1,00.html
Brazil, Argentina and Chile
    Unfortunately, current statistics for online advertising
expenditures for these countries will come at a price. I could find no
publicly available information for Chile, and statistics for Argentina
and Brazil are a bit outdated. The eLatin America Report, January 2001
is available from AllNet Research for $545.00, and includes
advertising statistics for Chile, Argentina and Brazil, as well as
other Latin American countries. The article summary and link to
purchase the report is available at
http://allnetresearch.internet.com/item/0,,51051_1,00.html . The
article summary contained no advertising spending statistics, so,
unfortunately, the article must be purchased

   In 1999, Alejandro Prince, an Argentine internet consultant for
Prince and Cooke, predicted that online advertising spending in Latin
America would reach $1.6 billion by 2004. Brazil was expected to
contribute $30 million, and Argentina $2.5 million.
http://www.internetnews.com/IAR/article.php/12_215821
      In a similar 1999 article, Prince maintains that Brazil’s
dominance in online advertising dollars will diminish as more of the
middle-class population in Chile and Argentina gain internet
connectivity. Prince expects these two countries to “have better
growth patterns in the future.”
http://www.nua.ie/surveys/index.cgi?f=VS&art_id=905355330&rel=true
     In 2001, Jupiter Research reported that Latin American online
advertising spending will increase steadily over the next few years,
but the “Internet will remain a secondary market for advertising,
comparable to billboards and other outdoor advertising.”
http://www.nua.com/surveys/index.cgi?f=VS&art_id=905356561&rel=true
     According to Florencio Utreras, a Chilean systems engineer who
has been in the forefront of developing Chile’s internet network,
online advertisers will not be attracted to Chile until at least 50%
of the households, or approximately 125,000 users, are connected.
http://www.honco.net/archive/990302.html
     The good news for Chile is that a 2002 article in eMarketer
reports that “Internet penetration in the country has now reached 1.66
million users.” http://www.nua.ie/surveys/index.cgi?f=VS&art_id=905357953&rel=true

 A useful compilation of statistics regarding various aspects of
marketing in the world can be found at
http://www.cba.hawaii.edu/aspy/Aspymkfa.htm . Though not broken down
specifically by country, if you scroll halfway down the page, you will
find a chart outlining internet advertising spending by world region
(including Europe, Latin America and AsiaPacific) from 2000-2005.

  The TGI.net Latina study surveyed 6,563 persons who had used the
internet in Argentina, Brazil, Chile, Colombia and Mexico. The chart
contained in the article shows the ways by which people said that they
found out about websites, thus giving some general insight into the
current success of internet advertising.
http://www.zonalatina.com/Zldata168.htm

I hope this information provides a start in your quest! It is always a
quandry as to whether the information needed is worth the substantial
price of  private research reports. Nevertheless, I enjoyed
researching this information for you.

Thanks, 
    
Umiat-ga

Clarification of Answer by umiat-ga on 05 Jul 2002 17:10 PDT
I just wanted to apologize for the messiness of my answer, with lack
of spaces between paragraphs, etc. It was formulated correctly in
Word, but translated poorly on the website. This was my first answer,
so I have some more to learn in terms of transferring text. Thank you
for your understanding!
needresearch-ga rated this answer:5 out of 5 stars

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