"Online advertising spending is increasing at a mesmerising pace in Hungary. The 13 largest content providers have boosted their revenues by 33% year on year in the first quarter of 2008, data of the Hungarian Online Advertising Index (MOHI) showed on Monday.If this fascinating trend is not broken, online advertising could carve out 10% of the entire advertising market in Hungary this year.
Websites of the 13 largest content providers - Adaptív Média, Axel Springer, Egyszervolt, Habostorta, Házipatika, HVG, Index, Inform Média, Napi.hu, Portfolio.hu, Ringier, Sanoma and T-Online - generated HUF 1.75 billion revenues in the January-March period this year, which marks a new all-time high in the history of first quarters, a traditionally weak period for the advertising market.
The aforementioned content providers had cumulated revenue of HUF 8.3 billion in the 12 months ended 31 March, up 6% from sales in 2007. Should 12-m trailing turnover keep growing at such a pace in the remaining quarters, total revenues of the 13 portals can reach HUF 10 bn by the end of the year.
While the Hungarian Advertising Association (HAA) does not publish a quarterly breakdown of data, the latest figures show that advertising spending - including agency commissions - amounted to HUF 14 bn in 2007, so it would be a breathtaking performance if the Top13 reached this level in 2008.
If the growth of online advertising spending remains unchanged and total spending does not exceed 6-8%, online advertising spending will carve out already 10% of the entire advertising market this year.
The soar of online advertising spending is not a Hungary-specific phenomenon, as this is the best-performing media segment all around the world. A dynamic growth in the number of Internet users, of course, plays a highly important role in this trend. Thanks to this, advertisers reach a growing number of people via online media.
Moreover, broadband Internet access is already dominant among users, so online content providers can come up with increasingly sophisticated solutions for those willing to advertise on the web."
Source: Portfolio Online Financial Journal
15.04.2008