BG and LV: will the development path be similar?

Lauris Lietavietis, DELFIMay, 2008

LV MARKET STRUCTURE

Websites

Agencies

Networks/brokers

Advertisers

Worldwide networks

Finance

Automotive

Technology

Mobile

Airlines

Currency Flat fee

LV/BG comparison

LV BGPopulation (mill.) 2,2 7,64Territory (m2) 64589 110910GDP/capita (USD) 18103 11904

LV BGIU (mill.) 1,07 2,2Int. Penetration 47,40% 30%Adv., 07 (mill. EUR) 133,67 247Adv. spending per capita 58,88 32,33Int. adv., 07 (mill. EUR) 8,38 6,4Int. Share (%) 6,3 2,6Int. spending per IU 7,82 2,91

During the increase in Internet penetration, which should move on, at one point internet will be perceived as more important component in the media mix, and advertising

budgets on the Internet should increase rapidly. (40%???)

Measurements

Summer, 2006

TNS user centric surveys

Free counters

gemiusAudience – pop up panel

TNS metrix – site centric measurement system

Used now for Internet planning

Summer, 2006

TNS user centric surveys

Free counters

gemiusAudience – pop up panel

TNS metrix – site centric measurement system

Used now for Internet planning

gemiusAudience advantages

Agencies •Advanced, easy analysis•Wide coverage of media

Internet media •Possibility for smaller sites to be in the data accepted by media agencies•Everyday analysis of site performance in gemiusTraffic•Possibility for bigger players to get advanced data about the sites sections and their usage, thus optimizing advertising in them•Competitor analysis and segmentation

Age: 45+

Occupation: higher level manager

Age: 15-24

gemiusAudience effect

No revolution, but evolution

Market becomes wider

Push to smaller players

Current trends

We want “something special”, creative, interesting, not banners

There is no such thing as the ‘digital consumer’. There is no great mystery about how they think and what they want. These consumers are doing exactly what people have been doing for thousands of years – communicating with each other. The fact that technology is enabling them to communicate with each other faster and over distance is being perceived as something unique and extraordinary that needs to be controlled and pinned down.

HOWEVER

Internet advertising has definitely become more creative, interesting and involving

More advertising in context

More ways of showing ads (capping, surround etc.)

More are used various campaign analysis tools by media agencies

With graphical references to blogs and Myspace the Heidies began the 2.0 hunt for 15 MB of fame.

Heidies 15 MB of fame – Cannes Cyber Grandprix

Thank you very much!lauris.lietavietis@delfi.lv