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This report covers: new media marketing, internet, intranets, electronic kiosks, interactive TV, customer relation marketing, CRM, banner advertising, interstitial, microsites, pop-ups, portals, rich media, sponsorship, specialist communications, full service agencies, retail sales through e-commerce, internet advertising market

Companies covered include: agency.com, AKQA New Media, Bluewave, BMP Interaction, CCG.XM, Circle.com, Clarity Proxicom, Clarity IBD, Deepend London, Grey Interactive Services, Hard Reality, Head New Media, The Hub, Hyperlink Interactive, Icon Medialab, Lateral, Modern Media (UK), Oasis Communications, OgilvyInteractive, Organic London, Pres.co, Quidnunc, Razorfish, Revolution, Rufus Leonard, Syzygy, Zentropy Partners, Zinc

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Executive Summary

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EXECUTIVE SUMMARY

New media marketing is an emerging industry that is exploiting the rapid growth of the new technology sector and encompasses the Internet, CD-ROM, interactive television (TV), interactive kiosks and company intranets. By virtue of the media it operates within, new media marketing is a global industry, and internationally, it is more than doubling in size each year. Although the market can be measured in various ways, it is worth at least £189.5m in agency billings.

New media marketing is concerned with providing companies, organisations and brands with a new media presence through websites, interactive advertising and electronic commerce (e-commerce) facilities. There is a growing role for Internet-based advertising and an emerging market in interactive advertising as digital TV gains in importance in the UK. New media agencies are chiefly concerned with, on the one hand, providing companies with the ability to benefit from the functionality of the new technologies available to them and, on the other hand, to ensure that their Internet presence is professional. New media marketing agencies then clearly overlap with other related sectors, including corporate communications, advertising, brand developments, direct marketing, data gathering and design. The established advertising agencies have paid particularly close attention to new media, as clients are now seeing their Internet presence as part of their overall public persona and media relationship.

The overlapping nature of the industry is the reason why many of the world's leading new media marketing agencies are arms of larger communications and advertising conglomerates. However, the fact that this is a very new industry has enabled a large number of smaller and independent agencies to spring up across the UK, serving a range of clients internationally as well as domestically.

E-commerce is providing another impetus to the industry, as more and more retailers and other companies seek to move from being simply 'bricks and mortar' operations to being online companies too. With UK consumers going online at a fast and growing rate - as is the case internationally - so the market for new media is being boosted by this growth. The new media marketing industry is set to grow to £2.7bn in value by 2004.

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