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European Online Ad Market Growing, Diverging

Last week European Internet Advertising Association (EIAA) and the Internet Advertising Bureau Europe (IABE) announced the launch of the first European online ad format standardisation, with the objective of helping the growth of pan-european interactive advertising campaign. To learn more about the initiative and the online advertising in Europe, MarketingWonk's Martina Zavagno talked to Riccardo Polizzy Carbonelli, International Advertising Director of Tiscali, a prominent EIAA member.

Martina Zavagno: What is the objective of the initiative promoted by EIAA and IAB Europe?
Riccardo Polizzy Carbonelli: "The decision has been taken to facilitate the job of media planners, giving them a more malleable media to deal with. The idea is to help pan-European campaigns planning by making people aware of online ad formats available throughout Europe. This is a first step to provide European online advertising with shared standards. We started with online ad dimensions but in the next version we plan to come up with guidelines for rich media technologies as well. Online advertising has proved successful when integrated with advertising on other media: if the Internet wants to become part of the media mix, it needs to provide the same standards as other media."

Z: What is Tiscali’s opinion about the European Online Ad Formats package?
PC: "We are definitely pleased with the initiative. In the past we too have experienced a few problems with different advertising spaces provided by our network sites. In Czech Republic, we sold spaces which were not compatible with the ones sold in Spain or in the U.K. Thanks to the European package, we will now move ahead to conform our offer throughout the network."

Z: A lot of people in the industry are complaining about the traditional 468×60 banner. The U.S. IAB wants to eliminate it. However it has been still included in the European Online Ad Formats package. Why?
PC: "In Europe, the 468×60 banner is still able to generate excellent revenue. We discussed a lot about it, and we did a lot or research: the numbers say the traditional banners work very well to generate brand awareness. We are conscious the format is going to disappear in the future, but at the moment, it’s still the most efficient and appreciated in Europe, therefore we could not exclude it. Anyway, I believe that when the banner’s creativity is good and it is put in the right context, its dimension aren't that important. The magic banner format, the one that is always successful, does not exist."

Z: So how do you see the European online advertising industry with respect to the North American? Do you think the European Online Ad Formats package will create a gap between the Continents?
PC: "I don’t think so. In Europe we always look with a lot of attention to what is going on in the U.S. We know the U.S. market is about one year ahead of us, and we remember that when we plan any initiative in Europe. The context is different. We want to reduce the gap with the U.S., but this is not our first priority. Our main goal at the moment is to help increasing investments in online advertising and in this perspective it's first of all important to 'unify' Europe."

Z: What is your opinion about online advertising in Italy. Is it developing slower in comparison with other European countries like, for example, the U.K. or Germany?
PC: "I think we need to consider that in Italy we have a very peculiar situation for media consumption in general. TV is the most popular medium, however pay TV has experienced a lot of difficulties in penetrating the market. The Internet is not yet perceived by media planners as part of the marketing mix. We need to work hard in order to explain to people how the Internet can be important in their communication plans. Anyway, I'll tell you one thing: the path to online advertising having a secure place in the marketing mix has started. And it's impossible to step back."

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