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As broadband begins to take off in the US, advertisers are welcoming the greater flexibility this gives online advertising, reports Daisy Whitney
When Verizon launched its VCast broadband mobile phone video service in the US in early February, its marketing push consisted of the biggest bullets an advertiser can use - the Super Bowl at $2.4m a spot - and also one that just two years ago would have been merely an afterthought: the Internet. Online is earning its place at the table next to TV and print as a critical medium to deliver brand messaging.
In the US, like the UK, broadband is growing and creating a robust platform on which to build online ad campaigns. Broadband is now in more than 50% of US homes and what used to be an add-on is becoming a key strategic play for many brand advertisers. Two of the biggest Internet advertisers are broadband telephony company Vonage, which spends more than 50% of its ad budget online, and Ford's Lincoln Mercury, with about 25% of its ad budget in digital media.
They aren't alone. Internet advertising hit a record $2.7bn (pound 1.4bn) in the fourth quarter of 2004, according to the Interactive Advertising Bureau (IAB). Market research firm eMarketer expects online advertising this year to reach $11.3bn (pound 5.86bn), a 21% increase over last year. While paid search is still the dominant portion of that money, it doesn't address the branding needs of traditional advertisers, which are more focused on rich...