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International: Web advertising as effective as TV advertising

09-November-2001
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International: Web advertising as effective as TV advertising

According to the survey commissioned by Direct Marketing Association of Singapore (DMAS), Internet advertising is almost as effective as television in stimulating consumer spending.

Five hundred individuals in the Republic were interviewed in July with regards to their consumer behavior in the three months ended June.

According to the findings, about 12 percent of the consumers here bought something after viewing online advertisements, compared with about 17 percent for television commercials.

Online advertising is extremely effective in helping consumers shop for products like banking and financial services, travel, computer equipment, books and CDs, said DMAS's research committee chairman Brad Jeffreys at a press briefing.

Television commercials work better for goods such as food, toiletries, cosmetics, beer and liquor--although the medium was generally perceived by respondents as the most effective in generating brand awareness.

A separate study called Reaching the Billion Dollar Mark--A Review of Today's Global Brands released by market researcher ACNielsen today revealed that 43 consumer brands worldwide rang up annual sales of over US$1 billion each.

Coca-Cola and Marlboro topped the list, each chalking up sales of over US$15 billion worldwide for the year ended March 2001. Their sales in Asia Pacific were over US$1.5 billion each during the same period.

Other notable brands include Pepsi Cola, Budweiser, Campbell's, Pampers, Benson & Hedges and Kellogg's.

"We looked at well over 200 brands in this study, and although more than half had a global presence, they just didn't have over a billion dollars in sales," said Jane Perrin, ACNielsen managing director for global services. "Over the next few years, we expect this picture will change dramatically."

Part of the change may be due to direct marketing. The findings revealed that direct mail catalog is the most popular way of shopping among consumers in Singapore--six out of 10 respondents said that they would buy from a catalog.

In comparison, about half of those surveyed indicated that they would respond to a television advertisement with a purchase.

Meanwhile, four out of 10 respondents said that they would make purchases over the Internet upon receiving online promotional materials.

The research by DMAS involved interviews with 100 companies in Singapore. Among other findings, email promotions and direct mail catalogs were rated by businesses as the best media for generating immediate sales.

Established in 1983, DMAS has about 200 member companies including American Express, OCBC, Singapore Post and TNT International Mail.

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