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Competition for revenues gets tougher on Romanian online market

In 2009, the competition on the online market will intensify, with the target being the advertising budgets and the revenues from services, analysts and local players told daily Business Standard.

'The year will be very difficult. The fight will be fierce and there will be players that will not make it to the end of the year. High investments have been made over the past two-three years and the revenues from 2009 will not cover the expectations,' said Orlando Nicoara, general manager of MediaPro Interactiv.

He emphasized that services became a more profitable business line than the online advertising and mentions the web sites ejobs.ro, bestjobs.ro and softpedia.com, which have gains worth 2-3 million euros.

In order to make up for the lack of consistent revenues from advertising, several publishers and players of the online market extended in the segment of services. MediaPro Interactiv developed a service of data back-up from the mobile phone and recently it launched the project of an search engine.

F5 Webcorp introduced a free online service that provides information and instruments to those who want to buy a car.

In the fight for the advertising budgets, players have intensively resorted to creativity and developed special projects, capitalizing the large number of events in 2008, from the elections to the Beijing Olympic Games.

In general, like this year, special projects, services, the insourcing of advertising sales, entrepreneurship, acquisitions even of blogs, will be the main strategic moves on the online market in 2009 with a view to drawing revenues.

The development of the online industry next year is difficult to predict and it is dominated by incertitude, as the economic crisis will not shun the internet.

According to Mihai Seceleanu, manager of InternetCorp, the market of online advertising will report the lowest growth in terms of percentage points of the past years, prompting, therefore, many players to adjust expectations, estimates and investments given the new situation.

Whereas Dragos Stanca, managing director of F5 Webcorp stakes on rise in the advertising market by 20 percent, Magdalena Zander of Intact Interactive estimates a growth of minimum 30 percent, but not more than 50 percent. The most optimistic is Bogdan Nitu, managing director of Webstyler, who predicts even doubling.

Irrespective of the evolution of the advertising market, it is expected players try to obtain a slice as much as possible of the revenues. Mihai Seceleanu says for the increase of the revenues, online advertising will focus in 2009 on interactivity and special projects, with better audience and higher efficiency.

According to the source, Realitattea-Catavencu Group aims to expand and strengthen next year the areas of online extra publishing through services, at the same time with the generation of traffic through other methods as well, development of strategic products and consolidation of sales' strategy.

 

Sursa: http://www.rompress.ro

Tags: online players services advertising revenues market car

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