Re: ONLINE-ADS>> Beyond these shores

Ray Taylor (taylor_at_bizbiz.com)
Fri, 28 Nov 1997 09:55:10 +0000

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From: Mark Dolley <mark_at_zapworks.com>

.. asked if now was a good time for US operations to set up in the UK.

The market for Internet advertising in the UK began in 1996 at around
$2m and is likely to hit 2-3 times that value in 1997. In absolute terms
this is tiny, but the growth potential is vast.

CPM rates are too high over here, but it won't last. They have already
been dropped by the leading players.

In terms of both technology and market development, the UK is still a
backwater (bayou?) of the Web but catching up fast.

If you want to set up in the UK, do your numbers first and expect to
have to do some work when you get here. If you want to make a quick
killing, forget it.

Reason for any downturn (is there one?) is that too many people get too
excited and overestimate the immediate potential and then feel let down
when the market does not deliver.

There is a lot of budget being set aside for Internet, but most
companies are still waiting for something worth spending it on. There
are few UK sites worth advertising on (this year). I hope they will get
their act together for 1998.

Speaking the same language helps, but only a little. You have to know
the territory to find your way around.

Ray Taylor

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