7th Annual European Market Guide
include delivery by a broadband connec-
tion, IPTV comprises television content
that, instead of being delivered through
traditional broadcast and cable formats, is
received by the viewer through the tech-
nologies used for computer networks.
“This is an emerging trend that will
soon bring the final conversion of Inter-
net and TV,” explains Brkljac, who sees
the trend as both a blessing and a curse
for DRTV marketers. On one hand it will
enable Internet connectivity throughout
households and allow for mass distribu-
tion of video. On the other, it will also
enable a wide variety of new channels
and programs, thus exacerbating any frag-
mentation that already exists within the
European DRTV space.
Source: ARM Direct And while online video and sites like
You Tube are popular among younger
European consumers, those that are most
apt to buy DRTV products still prefer the telephone or E-com-
merce to make their purchases. Also popular — particularly in
the U.K. — is the use of SMS text as a lead-generation tool.
“This allows viewers to text a single word from their cell phones
and have the advertiser call them back
later,” says Orsmond, whose firm has
added the SMS text options for more
U.K. Top-Spending TV Categories than 80 percent of its clients’ campaigns.
To marketers looking to make an
Rank Sector Expenditure £ % Change vs. Prior Year impact in Europe, Orsmond points out
that the EU is not a “United States of
1 Finance 384,607,107 + 4.81 Europe,” but that it is instead a group
of 27 countries, all with very different
2 Retail 377,716,580 + 5. 52 consumer attitudes and broadcast regula-
3 Food 313,773,622 +0.59 tions. “This can make getting started in
each country costly and time consuming,
4 Entertainment and media 300,624,551 - 6. 31 and it’s why we always recommend that
American marketers launch in the U.K.
5 Automotive 271,378,378 + 3. 66 first,” says Orsmond.
Compelling reasons to follow Ors-
6 Cosmetics and toiletries 248,721,292 + 5. 27 mond’s advice include a 60-million-
7 Household stores 145,997,296 + 5.80 strong population, 93-percent terrestrial
TV penetration, Europe’s widest choice
8 Pharmaceutical 131,693,089 + 10. 39 of TV channels, solid distribution networks (due to compact geography), TV
9 Beverages 125,428,309 - 15. 44* audiences that welcome American products, the highest home PC and credit
10 Telecom companies 103,706,318 - 24. 18* card usage in Europe, and the common
language — English — there. “Get it
Source: Nielsen Media Research right in the U.K. first,” says Orsmond,
Period: Jan. 1, 2007-Sept. 30, 2007 “and you can establish the perfect springboard into mainland Europe.” ■
to the development of home shopping
auctions coupled with games using
premium rate telephone services, as an ★ The European Union (EU) consists of
example of that movement. “While 27 countries
there is no single company that is
dominantly serving Europe as a whole, ★ Combined population exceeds 500
we’re seeing country-specific compa- million
nies consolidating their positions and ★ Combined economies contain 38% of
getting better at servicing their con- world’s GDP
sumers while at the same time increas- ★ Germany maintains the biggest
ing their respective sales.” population with 84 million
★ Most call centers are located in Britain
★ Credit card usage is highest in Britain
★ EU has 31% of world’s telephone lines
★ 13% of world’s population is in the EU
The Tech Connection
No marketer can afford to ignore
the Internet as a sales channel, and
the DRTV player looking to break
into Europe is no different. Branimir
Brkljac, president at Studio Moderna
Group in Slovenia, says that TV commercials in the region are often tied
closely to online campaigns — an alliance that’s sure to continue as IPTV (Internet-protocol Television) takes hold in Europe.
A system where a digital television service is delivered using
Internet protocol over a network infrastructure, which may
