We’re so used to the US being ahead of the UK in web technology and marketing, that to hear US executives say it’s the other way around is a bit of a shock. But that’s exactly what Yahoo!’s boss has been saying in the New York Times:
There are big differences between the advertising markets in Britain and the Unites States. In Britain, much of the advertising is national, while there are strong local and regional ad markets in America. Still, some believe that online advertising in Britain provides somewhat of a roadmap for where online ads in the United States and elsewhere may be heading. “The U.S. is so behind,” said Terry S. Semel, the chief executive of Yahoo, in a recent speech in London. “It’s certainly lagging the U.K. by at least a year or two.”
As well as a national advertising market, the UK has surged ahead in broadband adoption too. 47.4% of UK households now have broadband compared with 43.9% in the US, thanks to cut-throat competition in the ISP market here.
Part of the US “lag” is about legacy, according the article, about commitments both financial and psychological to TV as the lead-medium for advertising. That’s understandable - it is genuinely difficult to understand how far and fast people’s media consumption has changed and still is changing unless you keep a close eye on the figures.
I was impressed by simple slide someone from Google used at a recent meeting comparing the percentages of media spend in the average blue chip company with people’s consumption of media. While about a fifth of the average person’s media consumption is now web-based, spend on internet ad spend is only just over 6%.
And that’s just ad spend - think about the other, non-advertising-based marketing and communications opportunities for brands online. Creating better content, engaging with customers direct via social media, making sure that they are optimised in natural search…
