Asian dotcoms will not be spared the slump in online advertising revenues that has beset their US and European counterparts, predict industry analysts. According to the doom-sayers, ad growth in the Asia Pacific region will slump from 100% in 2000 to 70% this year, impacting adversely on income, profits and share prices.
Asian websites attract a minimal percentage of the region’s advertising pie – a mere 0.5% compared with 2%-3% in the USA. Its indigenous online advertising community needs to mature, say the pundits, with ISPs offering more sophisticated bandwidths and agencies displaying greater creativity to counter slow downloads.
Opined Euro RSCG Interaction's Hong Kong office: "Every party needs to become more committed and more creative - advertisers, agencies and sites especially." Adverse publicity about cyber-companies and web advertising had started a vicious circle, said a spoke: "First time advertisers are being held back by negative publicity."
News Source: CampaignLive (UK)