Executive Summary

1. Introduction

Overview

Definition

2. Strategic Overview

Background

Internet Access

Table: Households In Great Britain With Access To The Internet (%),-2005 And January-april

Figure: Households In Great Britain With Access To The Internet (%),-2005 And January-april

Table: Uk Home Internet Access — Broadband And Narrowband Penetration (%), First Quarters-2006

Figure: Uk Home Internet Access — Broadband And Narrowband Penetration (%), First Quarters-2006

Table: Uk Sme Internet Access By Main Connection Method (%),-2005

The Consumer

Variations In Internet Access

Table: Households With Home Access To The Internet By Government Office Region And Type Of Connection (%), And

Why% Of Households Still Do Not Have Internet Access

Table: Reasons Why Uk Households May Not Have Internet Access (% Of Uk Households),

Internet Usage

Table: Most Recent Use Of The Internet By Sex And Age (% Of Uk Adults), April And

Table: Most Recent Use Of The Internet By Income Bracket (% Of Uk Adults), April

Table: Adults Who Had Used The Internet In The Months Prior To Interview By Frequency Of Use By Sex And Age (% Of Uk Adults), April

Table: Adults Who Had Used The Internet In The Months Prior To Interview By Place Of Access (% Of Uk Adults), April And

Table: Adults Who Had Used The Internet In The Months Prior To Interview By Purpose Of Access By Sex (% Of Adults), April And

Table: Adults Who Purchased Goods Or Services Over The Internet By Recency Of Online Purchasing By Sex (% Of Uk Adults),

Table: Internet Purchases By Uk Adults In The Past Months (% Of Uk Adults),

Trade Associations

The Internet Advertising Bureau

The Uk Association Of Online Publishers

Market Size

Market Forecasts

3. Market Analysis

Market Size

Table: Total Uk Internet Advertising Expenditure (£m), Years Ending December-2006

Figure: Total Uk Internet Advertising Expenditure (£m), Years Ending December-2006

Table: Share Of Uk Advertising Expenditure By Medium (%), Years Ending December-2005

Segmentation

Table: Uk Internet Advertising By Industry Category (% Of Half-year Revenues), Second Halves And

Table: Top Ten Categories Of Uk Internet Advertising By Number Of Campaigns, Banners And Advertisers,

Table: Top Ten Uk Advertisers On The Internet By Number Of Campaigns And Number Of Banners,

Internet Advertisement Formats

Table: Uk Internet Advertising By Format (% Of Half-year Revenues), First Halves And

Search Marketing (paid Listings)

Classified Advertising

Display Advertising

Table: Internet Advertising By Display Format As A Percentage Of Half-year Revenues, First And Second Halves Of And

Banners/embedded Advertisements

Tenancies

Interruptive Advertisements

Competitive Structure

Measuring Effectiveness

Recent Campaigns

The Consumer

Online Consumer Profile And Behaviour

Social Network And Blogging Sites

4. An International Perspective

Overview

Europe

European Industry Bodies

European Interactive Advertising Association

Interactive Advertising Bureau Europe

Online Advertising Expenditure In Europe

Table: Eu-15 Media Share (%),-2007

Allocation Of Time Spent By Consumers On The Internet In Europe

Table: Allocation Of Time Spent By Consumers On Media Type In Europe By Selected Countries (average Number Of Hours Per Week),

Online Activities Throughout Europe

The Role Of Online Advertising In Europe

Table: Growth In Internet Advertising Expenditure By Market (%),-2008

Table: Growth In Internet Advertising Expenditure By Sector (%),-2008

Table: Percentage Of Increased Online Advertising Expenditure That Has Come From Other Media By Market (%),

The Us

Table: Trends In Internet Advertisement Formats In The Us (% Share Of Market), Full Years And, And First Halves And

5. Pest Analysis

Political Factors

Economic Factors

Social Factors

Technological Factors

6. Consumer Dynamics

Overview

Table: Summary Of Original Research Findings — Use Of The Internet And Attitudes Towards Online Advertising (% Of All Respondents And % Of Respondents Who Had Accessed The Internet In The Previous Months), August

Internet Access

Access To The Internet In The Previous Months

Table: Internet Access In The Previous Months (% Of All Respondents), August

Access To The Internet Via Broadband Connection

Table: Internet Access Via Broadband (% Of Respondents Who Had Accessed The Internet In The Previous Months), August

Location Of Internet Access

Table: Internet Access From Home And From Work (% Of Respondents Who Had Accessed The Internet In The Previous Months), August

Table: Internet Access From School, College Or University And From A Library (% Of Respondents Who Had Accessed The Internet In The Previous Months), August

Table: Internet Access From Elsewhere (e.g. An Internet Caf©) (% Of Respondents Who Had Accessed The Internet In The Previous Months), August

Frequency Of Internet Access

Table: Frequency Of Internet Access — Less Than Once A Month, And More Than Once A Month But Less Than Once A Week (% Of Respondents Who Had Accessed The Internet In The Previous Months), August

Table: Frequency Of Internet Access — Weekly Or More Than Once A Week, And Daily Or More Often (% Of Respondents Who Had Accessed The Internet In The Previous Months), August

Internet Shopping

Attitudes Towards Purchasing Goods Over The Internet

Table: Actual And Potential Purchasers Of Goods Or Services Over The Internet (% Of Respondents Who Had Accessed The Internet In The Previous Months), August

Table: Those Deterred From Purchasing Goods Or Services Over The Internet By The Risk Of Fraudulent Card Use Online (% Of Respondents Who Had Accessed The Internet In The Previous Months), August

Internet Advertisements

Responses To And Attitudes Towards Internet Advertisements

Table: Responses To And Attitudes Towards Internet Advertisements (% Of Respondents Who Had Accessed The Internet In The Previous Months), August

Use Of Software To Block Internet Advertisements

Table: Use Of Software To Block Internet Advertisements (% Of Respondents Who Had Accessed The Internet In The Previous Months), August

Classified Advertisements On The Internet

Visiting Internet Sites That Include Classified Advertisements

Responding To And Placing Classified Advertisements On The Internet

Table: Visiting Internet Sites With Classified Advertisements, And Responding To Online Classified Advertisements (% Of Respondents Who Had Accessed The Internet In The Previous Months), August

Table: Placing Classified Advertisements On The Internet (% Of Respondents Who Had Accessed The Internet In The Previous Months), August

Promotion Of Websites Via E-mail

Attitudes Towards Promotion Of New Products And Services By E-mail

Responding To E-mail Alerts And Then Visiting The Websites Mentioned

Table: Attitudes Towards And Responses To Promotions By E-mail (% Of Respondents Who Had Accessed The Internet In The Previous Months), August

Visiting Websites As A Result Of Advertising/information Via Other Media

Television, Newspapers, Magazines, Billboards, Other Websites And Mobile Telephone Text Messages

Table: Visiting Websites As A Result Of Advertising/information Seen On Television And Read In Newspapers (% Of Respondents Who Had Accessed The Internet In The Previous Months), August

Table: Visiting Websites As A Result Of Advertising/information Read In Magazines And Read/observed On Billboards (% Of Respondents Who Had Accessed The Internet In The Previous Months), August

Table: Visiting Websites As A Result Of Advertising/information From Other Websites And Via Mobile Telephone Text Messages (% Of Respondents Who Had Accessed The Internet In The Previous Months), August

7. Company Profiles

Introduction

Conchango (uk) Plc

Corporate Strategy

Profitability

Table: Financial Results For Conchango (uk) Plc (£000), Years Endingst December-2005

Recent And Future Developments

Diffiniti Ltd (carat Interactive Ltd)

Corporate Strategy

Profitability

Table: Financial Results For Carat Interactive Ltd (£000), Years Endingst December-2003

Table: Financial Results For Diffiniti Ltd (£000), Weeks Endingst December

Recent And Future Developments

I-level Ltd

Corporate Strategy

Profitability

Table: Financial Results For I-level Ltd (£000), Years Endingst March-2005

Recent And Future Developments

Lbi International Ab (including Framfab/oyster/wheel)

Corporate Strategy

Oyster Partners

Wheel

Profitability

Table: Financial Results For Lb Icon Ltd (£000), Weeks Endingst January, Weeks Ending St December And Year Endingst December

Table: Financial Results For Framfab Uk Ltd (£000), Years Endingst December-2005

Table: Financial Results For Oyster Partners Framfab Ltd (£000), Years Endingst December-2005

Table: Financial Results For Wheel Ltd (£000), Years Endingth June And, And Weeks Endingst December

Recent And Future Developments

Poke Ltd

Corporate Strategy

Profitability

Recent And Future Developments

Profero Ltd

Corporate Strategy

Profitability

Table: Financial Results For Profero Ltd (£000), Years Endingst March-2005

Recent And Future Developments

Tribal Ddb

Corporate Strategy

Profitability

Recent And Future Developments

Twentysix London Ltd (incepta Online Ltd)

Corporate Strategy

Profitability

Table: Financial Results For Incepta Online Ltd (£000), Years Endingth February-2006

Recent And Future Developments

8. The Future

Overview

Forecasts

Table: Forecast Total Uk Internet Advertising Expenditure (£m), Years Ending December-2011

Figure: Forecast Total Uk Internet Advertising Expenditure (£m), Years Ending December-2011

10. Consumer Confidence

Methodology

Key Findings This Quarter

The Willingness To Borrow

Confidence Slips Slightly

Table A: The Average Amount Consumers Are Willing To Borrow In Order To Purchase Expensive Items At Current And Constant November Prices (£ And £bn), November-2006

Significantly More Adults Are Willing To Borrow

Table B: The Number Of Adults Willing To Borrow In Order To Purchase Expensive Items (000 And %), November-2006

Spending From Savings

Little Change In Spending From Savings

Table C: The Average Amount Consumers Are Willing To Spend From Savings In Order To Purchase Expensive Items At Current And Constant November Prices (£ And £bn), November-2006

Saving Grows In Relative Importance

Table D: The Average Amounts Adults Are Confident Spending To Purchase Expensive Items (£ And %), November-2006

11. Further Sources

Associations

Publications

General Sources

Government Publications

Other Sources

Bisnode Sources