The latter is predicted to more than double this year in the UK, from £54.5m to £113.04m. But despite this exponential growth, net ads will equate to a mere 1.16% oconventional ad spend. From 2001, Zenith believes, the growth rate will slow to 30% and 23% in 2002. In the longer term, classified advertising on the internet is seen as the main threat to traditional media, although the promotion of new media in old may re-sult in 'traditional media ... gaining more than they lose, at least at first'.
Scandinavian-based Letsbuyit.com plans to spend over $100m (£62.5m) this year as the newly-launched on-line retailer battles for its place in the cyber-sun. According to global marketing director Soames Hines, the company has just completed its third round of funding and claims sufficient resources to underpin its growth plans until mid-2000 at least. Thereafter, it will decide whether to seek additional funding via a rights issue or a public flotation. Abbott Mead Vickers BBDO has been appointed to handle the business in Europe (accounting for some $35m-$40m of spend) with the residuum allocated to rollout in the US, Latin America and the Pacific Rim.