Digivate - More money for your blog

Online marketing is the most lucrative form of advertising, according to a joint study by the Internet Advertising Bureau (IAB) and PricewaterhouseCoopers.

The industry achieved above-expectation growth of 41.3 per cent this year, taking its market share to 14.7 per cent.

Guy Phillipson, chief executive of the IAB, commented: “The online market is developing at an astounding rate and once again we see exceptional growth and a significant increase in market share. Ninety per cent of internet users are on broadband now and nearly 40 per cent are using wireless.”

He added: “Importantly, marketers have a much better understanding of how online works and how to measure the effects of brand advertising as well as direct response.”

Classified advertising now accounts for 20.8 per cent of all internet advertising spend, growing by a staggering 72 per cent over the past year to £277.7 million.

Meanwhile, internet display advertising - which includes banners, skyscrapers and rich media formats - was up 33 per cent to a share of 21.5 per cent.

Multi-channel retailers need to provide comprehensive descriptions to their customers if they want the technology to have an impact on sales, the e-tailing group has warned.

Some 77 percent of respondents to a survey the group conducted last month said that their interest in buying from a particular merchant was ‘very to somewhat’ influenced by the quality of content on its website.

Clothing and accessories, computer hardware and software and consumer electronics were the products for which consumers regarded detailed information as most essential.

Jay Heavilon, president of ARS eCommerce, said: “It is apparent that everyone wants more information. In fact, 91 per cent of those who completed this online questionnaire responded that they ‘almost always to frequently’ click to learn more when they find a product of interest.”

Lauren Freedman, president of the e-tailing group, echoed his sentiments: “Conversely, limitations in product content prohibit consumer decision-making and can result in lost sales. We cannot emphasise enough the need for comprehensive content on ecommerce sites.”

The survey found that 66 per cent of people research for products online half the time or more.