dcsimg
RealTime IT News

Older Brands Score Higher Recognition

CIA MediaLab, part of Tempus Group plc, released figures on Friday that show how the earliest Internet brands such as Yahoo! and Amazon continue to have greater name recognition in the U.K. than later brands, despite spending substantially less on advertising.

For example, latecomer QXL.com spent £2.5 million ($4 million) on advertising in 1999 and achieved 5 per cent awareness. By contrast, Yahoo!, established in 1994, spent just £0.7 million ($1.14 million) in the same year and achieved 39 per cent name-only awareness.

"There is so much competition for consumer's surf-time that all dot.coms have to spend more money on advertising to be heard above the rest," said David Fletcher, head of planning at CIA Medianetwork, which runs MediaLab in the Tempus Group.

"It is not just a case of spending the money to launch a site, money must continuously be invested in marketing to fight off competition," said Fletcher.

CIA MediaLab has compared the October 1998 launch of Amazon in the UK with the subsequent launch of BOL in March the following year. Figures show that BOL has had difficulty in matching its older and more established rival, say researchers.

The 1999 awareness/advertising-spend figures for a whole range of companies, released by CIA MediaLab, are as follows:

MSN achieved 16 per cent awareness after £0.26 million ($0.42 million) spend; Jungle 15 per cent after £1.1 million ($1.8 million); Boo 8 per cent after £# 1.6 million ($2.6 million); Lastminute 7 per cent after £0.6 million ($0.98 million); Smile 5 per cent after £0.6 million ($0.98 million); QXL 5 per cent after £2.5 million ($4.07 million).

The figures come from CIA Sensor, a monthly national survey of 500 adults conducted by BMRB for CIA MediaLab.



×
We have made updates to our Privacy Policy to reflect the implementation of the General Data Protection Regulation.