The Advertisers' Trends: Internet or Printed Media?

by James Travers-Murison

The question for a lot of companies is where to advertise - in a magazine or on the Internet? Ecommerce was worth $1.3 billion by 2002 in Australia but by 2010 mobile phone ecommerce alone was worth over $3.8 billion.

10 billion emails were being sent everyday on the Internet in 2000 according to and by 2010 had increased to 210 billion – a staggering 2100% increase Since 1997 in Australia there has been a 350% increase in Internet users. 16 million people are on-line. One third of Australian homes had Internet access, 2.3 million households in May 2000 (ABS 8147.0) but by 2009 this had exploded to four out of five. Our survey found 85% of people in the A.C.T. had Internet access in 2000 now it is probably close to 99%. The internet is not the future of media and the future for magazines. It is here now!

According to IAB through Pricewaterhouse Coopers, the US was spending $8-10 billion on Internet on-line advertising in 2001 year and was growing 8.8% per quarter. There was an 127% increase in quarterly revenue in that year. Banners accounted for 50%, sponsors 27% and classified ads at 7%. Research is required to see banners performance now in 2011.

In comparison printed magazine growth has increased 4% in the 1990s while other media outlets have fallen. But at the beginning of 2001 printed magazines' readership had skyrocketed doubling since 1995, however growth leveled out in 2001. Gross annual cover price revenue for all printed magazines has increased 63% from 1990 to 1997 to over 0.8 billion dollars. From 1997 to 1998 printed magazine purchases for households increased 5% on the CPI (100.0 to 102.2) to 0.94% of consumer's total income. 2011 figures are necessary to compare growth.

Figures for Internet expenditure as a % of consumer income are unavailable as yet. Advertising in printed magazines 1992-2001 in ad dollars increased 92.9%. Advertisers were spending substantial amounts on magazine advertising, which increased to 6.7% of total expenditure in 2001. It was recognised that magazines remain to be looked at for a longer period and viewed by more people than any other form of media, and have a significantly greater impact on influencing purchasing decisions than any other form of advertising. 2011 statistics are required as printed magazine growth has dropped due to social media.

Yet three times as many firms are advertising on the Internet from 1999 to 2001. 29% more revenue was spent on on-line advertising in those years. 2011 stats are needed.

Low-cost advertising getting to professional people can be obtained through the Internet using pay by page impression. In 2001 for every thousand pages that are accessed with your banner displayed on the top you paid $60. In 2001 an average 50,000 copies sold of a printed magazine cost $3,000 for a quarter page advertisement. Costs in 2011 need to be researched.

Initially it may appear that the Internet is not cheaper, however there is greater flexibility in choosing targeting of your ad - time slots, type of web site, exact budget.

Furthermore you know someone has looked at the page, which can't be guaranteed with a magazine. In fact on average only 40% of magazines printed are actually sold, though this does not affect the figures above. However magazines are accessible at any time and can be viewed months or even years later, and often are read by more people than just the purchaser.

On-line banners ran for an average of 4 weeks and 60% of hits occur in the first two weeks in 2000. Webmedia tended then not to target advertising, but advertised 79% on portals, search engines and community sites; AdRelevance Sept 2000. In 2000 survey disclosed that Banner advertising on-line rated on average 3.85 out of 10. However 63% of people earning over $35k were positively disposed to them. On average people clicked once in every 40 sites visited or less. 4.6 preferred no banners. People rated value in banners according to Information 6.65, Colour 6.1, Picture 6.1, Sophistication 5.3, Movement 4.85, Video 4.25 and Glitz/image 3.85 out of 10. Further market research is needed in 2011.

In 2001 network site banners averaged 0.4% click throughs, increasing to 0.8% by targeting the sites a company advertises in (, The Future of Banners). Stats are needed for 2011.

Although banners were not heavily used in Australia, nor necessarily looked well upon, they were the prime source of Internet advertising and trends in the States confirmed that they would become more acceptable. (source: Media Matrix, Magazine Pamphlet of Australia, and Audit Bureau of Circulation (ABC) June 97 (see appendix 6.4)).

Banners results need to be investigated for 2011.

Our new Internet magazine or ezine focusing on Australia called Travers-Murison Magazine has now launched its first edition and low-cost banner places are available by going to and selecting ‘advertising’ or click here.


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