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MEDIA MOMENTUM 2008 AWARDS
Equity funding
in the Internet space: Hangover or just a pause for breath?
First things fi rst: we do not expect venture capital that brands needs to associate themselves with.
funding to hit the buffers in 2008. Having said this,
FOUR OTHER MAJOR TRENDS
twice as many companies were funded in 2006 as in
Outsourcing your etailing site to a specialist. We’ve
2005, and 2007 was double 2006. So 2007 was a heady
already started seeing this happening with M&S /
year for early-stage European venture capital deals in
Amazon and Virgin Megastores, but many more
this sector. Three-quarters of these will require further
retailers will partner with web specialists to manage
cash in 2008, with half of them underperforming
their digital front window and, as a result, these
their original business plans. We therefore expect
specialists will play an increasingly important role in
that VCs will be increasingly focused on their own
digital marketing.
fl ock of investments as opposed to being gung-ho for
new deals.
Social everything. With Facebook becoming the
new landing pad from which many users navigate the
Other trends? Enter private equity. As internet
web, we will see most players try to bring some form
businesses grow up, the market will see more private-
of community into their online experiences. Most
equity funded deals in the sector, similar to 3i’s
will fail, but it’s a must-have.
acquisition of VNU Media and Apax’s acquisition
of Trader Media.
Making sense of all that data. IT platforms are being
hit by a double whammy of more and more internet
The theme of the year is integration. How do you
usage and increasingly sophisticated tracking tools.
integrate your web ad strategy with your TV
This is resulting in an enormous deluge of data about
campaign with your search budget? How do you
consumer behaviour. Cutting through all the crap...
track a user engaging with your service via her
sorry, I mean crystallising the salient themes will be a
WAP browser / MAC / telephone / email / banner
major challenge for the industry.
ad? Feeling smug with your single advertising
application will soon be very 2007. The next bit is
The ugly side of Google. As Yahoo falters further,
much harder. Agencies will need to invest in some
EU regulators will start to listen to complaints that
serious data-tracking technology to deliver an
there are downsides to having such a dominant ‘do-
integrated picture to their clients.
gooder’ in the online market place.
Will mobile make a serious impact in 2008? In short,
All in all, it will be another year of solid growth for
no, this is not the year that mobile advertising lives
the industry. More complicated than the last two due
up to its hype. Yes, WAP banner ad impressions will
to the need to integrate across various platforms, but
register impressive growth statistics, but not enough
full of opportunity all the same.
to bother online search and banner ad markets. We’ll
have to wait until 2010 for that.
But watch how playing online games starts to
integrate into mainstream advertising. In 2007 it was MIKE REID
trivial business.; in 2009 it will be a new user interface Director, 3i
p01_09_MMA.indd 6 5/3/08 2:19:12 pm
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