webqem blog

Interview with Martin Hoffman, CEO, NineMSN

According to the Audit Bureau of Verification Services (ABVS) online advertising grew 58% in the 2003/2004 financial year to reach AU$300million.

There’s every indication we’ll see a continued meteoric rise this financial year with forecasts pointing to online making up 5% of total advertising spend for 2004/2005.

We asked Martin Hoffman, CEO, ninemsn for his thoughts on the current state of online advertising in Australia:

Why has there been such a huge growth in the past 12-18 months in online advertising?

One of the key drivers has been the size of the audience. More than 10 million Australians use the Internet every month and this audience has become too big for advertisers to ignore. Major brands are beginning to capitalize on the dramatic difference that online can make when used in a balanced, thoughtful and cross promotional way.
Coupled with this we are seeing media consumption habits change and it’s becoming more challenging than ever before to get and keep the attention of consumers. This plays well for the online environment where advertisers can engage and interact with their audience and create a two way dialogue between the brand and the consumer.

Australia has seen rapid broadband penetration on the back of the industry price war earlier this year. There are now more than 3.3 million Australians accessing the internet through broadband connections in the home. Nielson Netratings predicts that by the end of 2004 50 per cent of all home internet connections will be broadband.”

Why should marketing directors and agencies be looking at including online advertising in their marcomm spend?

Online is the first medium to provide a true combination of brand and direct response advertising. It offers unmatched depth and interactivity.

Failing to commit real and sustained resources to online in the face of new technologies and dramatically changing media habits will jeopardize the success of your marketing campaigns.”

You recently urged marketers to put 10 percent of their marketing budgets into interactive advertising, do you think this is realistic?

While it’s a bold request, it’s one based on hard research, smart technology and the maturity of the medium and is a decision that will bring rewards for your brand.”