Crawling Period for Internet Over as Market Matures


Friday, November 27, 2009

HATİCE UTKAN – Hürriyet Daily News

While traditional advertisement companies saw a 50 percent contraction during the crisis, the digital advertisement sector grew. As the Internet still has a room to grow in Turkey, digital advertisement will continue growing, according to Köksal Abdurrahmanoğlu, founder and managing director of Adinteractive, a digital advertisement company.

'Adinteractive helps the brand and the customer to come closer. In the digital environment customers communicate with the brand for a longer time,' says Köksal Abdurrahmanoğlu.

As the Internet still has room to grow in Turkey, digital advertisement will continue growing, according to Köksal Abdurrahmanoğlu, founder and managing director of Adinteractive, a digital advertisement company.

While traditional advertisement companies saw a 50 percent contraction during the crisis, the digital advertisement sector grew.

Founded in New York in 1994, Adinteractive was transferred to Istanbul in 1996. “It is the first interactive digital agency in Turkey,” Abdurrahmanoğlu told the Hürriyet Daily News & Economic Review in an interview.

“Our aim is to provide consultancy services to companies in terms of how they can communicate with their customers in the digital environment,” Abdurrahmanoğlu said. “Adinteractive also helps the brand and customers get closer. This is much more effectively done with digital methods. In the digital environment customers communicate with the brand for a longer time.”

The company is also preparing banners and creating projects for new products. It gives consultancy services to companies that are willing to expand in global markets and brands that prefer to expand in the local market.

“If we divide the timeline into pieces, we can say that the Internet has become a really important phenomenon after 2000 in Turkey,” the managing director said. “Since 1996, textile and aluminum firms that wanted to expand globally used Internet advertisement. After 2000, everybody started doing so.”

Baby steps

For Abdurrahmanoğlu, Internet’s “crawling period” in Turkey has come to an end and it “started to walk” after 2005. “There is still room for growth. In this sense, Internet is not running yet. What we see are baby steps.”

The market share of digital advertisement in total advertisements is only 1.5 or 2 percent. “But this amount will increase to 5 percent by 2010.”

The global crisis also affected the digital advertisement sector, but in an unusual way. The sector actually benefited from the crisis as companies realized they can reach the same audience with less costs. “Compared to traditional advertisement, the value of digital advertisement is much bigger,” according to Abdurrahmanoğlu. “Digital advertisement interacts, involves and engages. In this way it is possible to create a ‘lovemark.’ The main aim is to create an emotional connection between the customer and the brand.”

Adinteractive reaped less than $1 million in annual turnovers until 2000. The figure rose to $1 million in 2001 and then to $2 million in 2002 and to $3 million in 2003. During the crisis, the company has grown by 30 percent. “We are expecting to increase our turnover by 50 percent in 2010.”

Abdurrahmanoğlu said the digital advertisement market has seen 25 percent growth during the crisis. Since Turkey is a huge market with huge potential, global firms are also attracted to the market. “Turkey has a rapidly growing number of Internet users, currently totaling 26.5 million. This is approximately 37 percent of the population, leaving considerable room for growth.”


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