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UK advertising: internet to overtake TV this year [2008-58e]

·         We expect UK online advertising to reach £3.56 billion this year overtaking TV ad spend which we estimate will be £3.39 billion, making the internet the UK’s largest single advertising medium, accounting for over 19% of total expenditure

·         The main engine will continue to be paid search which we forecast to exceed £2 billion or 60% of online ad spend, with Google growing its share to 80% or slightly more if its new alliance with Yahoo! is extended to the UK

·         Driven by sharp growth in online video consumption, there are early signs of a shift in spend from TV to the internet; however, the near-term impact will be small, with online video advertising equivalent to just 1% of TV ad spend in 2008

17 Jun 2008 Access to full report for subscribers
 

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News
 
The Financial Times
Following the growing impetus for mobile industry consolidation in Europe (Mobile merger concessions sought), the FT concluded that "pressure is intensifying for France Telecom and Deutsche Telekom to make concessions to gain regulatory approval for the proposed merger of Orange and T-Mobile in the UK".  
 
James Barford was asked for his view.  He said the Orange/T-Mobile entity would probably have to make “very significant concessions” during a Competition Commission investigation, and did not rule out the proposed merger being vetoed.
04 Feb 2010
 
Bloomberg
In anticipation of regulatory reaction to proposals for consolidation in European mobile telecoms (Orange, T-Mobile Deal a Competition Threat, U.K. Says), Bloomberg inferred that "UK authorities want to review the merger of France Telecom SA and Deutsche Telekom AG’s British units, telling European Union authorities that the deal may significantly affect competition in the country".
 
James Barford was asked to comment. He said that a review by the UK’s Competition Commission, if begun, "is probably going to result in the merged company having to make very significant concessions, with the not insignificant chance of an outright ban.”
03 Feb 2010
 
The Times
Drawing attention to the emergence of new online communities of professionals seeking employment opportunities (Hedgehogs – the social network for bankers), The Times commented: "Huge numbers of redundancies have meant that go-it-alone bankers have found themselves without the level of support that once they were accustomed to". 
 
Ian Maude was asked for his view. He agreed that there is a case for bringing virtual communities together, but cautioned that such sites need to offer more than mere social benefits to succeed. He said: “A lot of these people already have their own networks through the traditional social media sites. What new sites have to ask themselves is what is they offer in addition.”
02 Feb 2010
 
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