European Interactive Advertising Association

London, 19^th November 2008 – Research released today from the European Interactive Advertising Association (EIAA) shows that Europeans are deepening their experience of the internet by not only increasingly using it for leisure pursuits but to actively enhance and manage their daily lifestyles. Over half (55%) of European internet users are now online every single day, three quarters (75%) are using the internet during their evenings and 51% of Europeans (up 13% from last year) are on the web at the weekends. Freedom and flexibility are key watchwords for today’s consumers too with almost half (49%) of broadband users using wireless.

Almost three quarters (73%) of European internet users state that as a result of the internet they are staying in touch with friends and relatives more, 54% have booked more holidays or made travel arrangements and almost half (46%) are better able to manage their finances. In addition they claim that the internet has provided them with a greater choice of products and services and access to important information resources.

While past reports have highlighted peaks of growing popularity amongst the 16-24’s and the older generation, we are now seeing a wider spectrum of Europeans using the internet for sustained periods of time to deepen and diversify their online experiences. Encompassing all life-stages and the first to grow up in the technology era, it is today’s 25-34 year old age group that seems to be collectively driving recent growth.

Time spent online has risen amongst this age group (from 13 hours in 2007 up to 13.9), 36% are now heavy users of the internet, spending an average of 16 hours or more online each week, and almost two thirds (63%) are online daily. They are active lifestyle users too with almost half (49%) regularly communicating via social networking sites and more than a quarter (26%) creating personal profiles (+24% since 2007). They also manage their finances (53%) and to book holidays or travel arrangements (56%) more as a result of the internet as well as visiting more clothing and fashion websites (41%) more than the average European internet user.

This age group is at a ‘Golden Youth’ life-stage, happier, more confident and more financially secure.[2] With them connecting, engaging and taking more control online, it represents a unique opportunity for advertisers to target this lucrative market that has arguably been overlooked in the past.

When researching or considering a product or service, 64% of European internet users consider personal recommendations important, with websites of well-known brands (49%) and both online customer (46%) and expert (45%) reviews following closely, showing that internet users are increasingly using both online as well as personal recommendations to make purchase decisions.

In addition, 41% of European internet users admitted to changing their mind about the brand they were about to buy based on online research and the amount converting to purchase was boosted to 87%. As a result of this growing confidence, consumers made a record number of purchases online in 2008 – a mean average of 9.2 purchases per person over a six month period versus 7.7 in 2007.

Alison Fennah, Executive Director of the EIAA said: “Far from the information tool of five years ago, the internet has evolved into more than just a media. Now it is effective tool that enables today’s consumers to control and develop their lifestyle experiences, whether that be communication, entertainment, information gathering or resource management. This is never more evident than by the fact that the traditionally upmarket yet time-poor Golden Youth are increasingly turning to the internet. As a result there is a wealth of opportunity for brands and advertisers to effectively engage with these active consumers, the challenge is in creating campaigns that enable them to continue feeling in control.”

First conducted across 10 European countries in 2004, the EIAA Mediascope Europe Study remains one of the most comprehensive pieces of research available into how people allocate their time across media in Europe and how consumers use the internet for content, communication and commerce. Now in its sixth year, it forms a unique benchmark for the evolution of consumer media use and online behaviours.

Michael Kleindl, Chairman of the EIAA and Managing Partner of Valkiria Network said: “The growing accessibility of the internet and its adaptability and potential to develop in line with changing consumer wants and needs has been a key driver of growth in recent years. Wireless penetration is substantial across Europe’s broadband users and the enhanced ability and propensity for consumers to conduct entertainment as well as essential tasks online is fuelling their feeling of empowerment. For advertisers, it is important to gain an understanding of the ways in which Europeans are responding and engaging online in order to effectively target them within this evolving medium.”

The study involved 9,095 interviews in total with 6000 CATI interviews in UK, France, Spain, Italy, Germany, Belgium and the Netherlands in addition to 3000 online interviews in Scandinavia along with 3000 interviews using an Omnibus study.

The European Interactive Advertising Association (www.eiaa.net) is a unique pan-European trade organisation for sellers of interactive media and advertising technology and service providers. The primary objectives of the EIAA are to champion and to improve the understanding of the value of online advertising as a medium, to grow the European interactive advertising market by proving its effectiveness, thus increasing its share of total advertising investment. Since its founding in 2002 the EIAA has invested substantially in multimedia research, marketing, standardisation activities and education, of both the market and government, on the role of interactive advertising. With this wide-ranging programme the EIAA has grown quickly to command a solid reputation and influential position within the European online market.

EIAA members include AD Europe (Orange, United Internet Media, Libero), AdLINK Group, blinkx, CNN International, Doubleclick, eBay International Advertising, Gruner + Jahr, LYCOS Network Europe, Microsoft Advertising, MTV Networks International, Platform-A, PREMIUM PUBLISHERS ONLINE, wunderloop and Yahoo! Europe The EIAA is chaired by Michael Kleindl, Managing Partner of Valkiria Network.

With these member networks reaching the majority of the European online audience, the EIAA is in a unique position to work with advertisers and agencies to realise the full potential of interactive media in any marketing strategy.

[1] This is an aggregate of: book holidays/travel arrangements, choose better products or services, manage finances, access health information, better equip yourself for lifestyle changes

[2] ‘The Golden Age of Youth’ Study, Viacom Brand Solutions International, October 2008