Recession hits UK internet advertising

IAB/PwC released figures for 2008 showing that annual spending on internet advertising rose 19.1% to £3.35 billion, accounting for close to 20% of total UK advertising, far higher than in any other major market

The recession started to bite in H2 2008. As budgets are cut, display has been hit harder than search and classified, as a rising share of inventory (almost 50%) is sold by ad networks for discounted CPMs or on a performance-basis

Iliad’s 2008 results and prospects

Iliad, now France’s number two broadband provider, will increase total revenues by 10% per year by 2012, mainly by growing its subscriber base (rather than ARPU) in a market however rapidly reaching maturity

Excluding mobile, the EBITDA margin could rise by five percentage points to 40% in 2012, but a mobile launch in 2011 would pare the margin down to 32%

NGA in Italy

This report concludes our series of country reports (France, Germany, the Netherlands, Spain and Sweden) on next generation access on the Continent

Although Italy boasts the largest FTTH network in Europe, it is the least propitious market for new NGA plans among those we have surveyed. Telecom Italia has no specific plans for NGA, precluded by its level of indebtedness, and neither does any of the altnets

UK pay-TV in 2009: recession and competition concerns

Leading pay-TV operators Sky and Virgin Media (VMed) have shown little sign of recessionary damage in 2008 and the outlook for Q1 2009 remains positive. Difficulties are apparent at complementary pay-TV service provider Setanta

Ofcom’s pay-TV investigation enters its final stages in 2009. Ofcom faces a formidable challenge to devise a workable wholesale must-offer solution for premium film and sports content that fosters competition across all platforms

Online classifieds: signs of recession


Confirmation of robust UK online classified growth in 2008 from IAB/PwC should not be interpreted as ‘business as usual’, with signs of severe turbulence emerging in the final months of the year for pro-cyclical activities like recruitment and property

Even online giants such as AutoTrader, Rightmove and Jobsite will be unable to offset the underlying collapse in their respective marketplaces in 2009, and we anticipate low levels of activity to persist into 2010 and potentially beyond

Digital Britain summit: talk is cheap

Friday’s Digital Britain summit generated more heat than light but nonetheless provided a useful forum for the articulation of the views of government and some other key players

There appears to remain a significant gap between government aspirations for a high speed broadband Britain and the commercial realities. All eyes are now on Wednesday’s Budget to see the extent to which the government is prepared to put its money where its mouth is

Carphone Warehouse March quarter trading update and analyst day

In fixed line, net broadband additions for the quarter were strong at TalkTalk given a tough market, but remained firmly negative at AOL UK

We are sceptical of new guidance for fixed line for the year to March 2010, but still expect reasonable performance, given the slowdown in broadband market growth

The distribution business continued to defy the consumer downturn in volume terms, with 12% connections growth and a solid outlook for next year, although the pain is being felt at the margin level

Google UK Q1 results: feeling the squeeze

Google UK delivered solid performance in Q1, with gross revenues up about 8% YoY to £440 million; however, the huge growth of previous years has ended, due to a combination of recession and growing maturity in search

Key verticals (finance and travel) are being impacted by the downturn, but Google should continue to benefit from the secular shift of advertising to online and increasing advertiser focus on measureable ROI

Q1 2009 GDP and forecasts for 2009 and 2010

As the UK recession deepens, economic factors are now dominant in the revenue growth of ad-supported media industries, as well as mobile and, to a lesser extent, fixed line telecoms industries – our subscribers will start receiving our informed research on economic issues

Faster GDP decline in Q1 2009 than in Q4 2008 indicates that the economy has yet to reach a bottom – expect downgrading of the Government, Bank of England and independent forecasts for 2009 GDP growth, with a 5% decline at the low end of the range


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