Advert firms to ramp up their digital divisions

May 15 2008 by Andrew Mernin, The Journal

ADVERTISING firms across the region have revealed plans to ramp up their digital divisions as a major survey predicts UK online ad spend to soar 60% this year to £385m.

According to new figures released by e-commerce company E-consultancy, UK online advertising spend will rocket this year while spending on advertising networks – which connect websites and advertisers – will jump from 40% of total ad spend last year to 50% this year.

The group’s 2008 Online Advertising Networks Buyer’s Guide also predicts the amount spent on overall display advertising will grow by 30% to £770m this year. Amid rapid growth in the online advertising industry, a number of major North East advertisers have revealed plans to invest heavily in expanding their digital operations. The North advertising house behind London Zoo and the Alnwick Garden has plans to expand its digital division as it bids to land international clients. Newcastle-based Cravens has appointed industry veteran Gary Jobe as a new digital director and also plans to take its digital team from five into double figures within 18 months

Managing director Phil Coverdale hopes the firm’s increasing investment into its digital division will help take the business on to a global level.

He said: “The appointment of Gary Jobe gives us the chance to talk about new areas. With London Zoo, it’s not just about bringing their new exhibits to life but doing things online as well. The key opportunity for us is to move the existing client relationships to more of a digital partnership.”

Mr Coverdale added that the company’s shift towards new digital opportunities would open the firm up to international opportunities and help it win clients on a global scale.

Another North East communications firm looking to reap the rewards of rapid growth in the online sector is Newcastle-based Guerilla.

The company, which has seen its fledgling digital arm grow considerably over the past two years, is now targeting European expansion on the back of huge growth in the sector.

Roddy Lang, head of new media at the firm, said: “There’s been a noticeable shift in what our clients request from us, with more asking for digital media to compliment traditional print media. We plan to steadily grow the division in the continuing manner as well as widening our network of partners and suppliers. Overseas markets, initially in Europe, is an important target for us and this is a logical step for us due to international clients such as CSD Sealing Systems and Nike which we have worked with over the past few years.”

Meanwhile North East communications giant Robson Brown is also looking to boost revenue through online channels. Managing director Andrew Marwick said: “There’s massive growth in the online sector, it’s the biggest growth area and we are certainly responding to that. We have appointed a new digital director and we are staffing up a digital department with web developers and project managers because we are expecting it to be big.”

PAGE TWO: Read  more on Cravens' expansion plans.