Marketing boosts broadband numbers

The higher marketing and advertising spend of Internet service providers over the last few months has paid off, with broadband subscriber numbers surging by 25 per cent, according to Nielsen//NetRatings.

The research company has released figures showing that spending on advertising broadband services went from a mere $265,000 in January of this year to over $2.3 million in March, and increase of 800 per cent. This trend continued over the last few months, with $2.18 million being spent in June.

The marketing efforts have been led by telecommunications giant Telstra, which after a slow start to the broadband race has committed a significant amount of its marketing budget to the cause. It was the most dominant advertiser of broadband services in the first seven months of the year, and its aggression has resulted in its competition ramping up their own marketing activities.

"Telstra's CEO has gone on the public record that they are committed to broadband, that they will have a million broadband customers by 2005," commented Andrew Reid, senior analyst for Nielsen//NetRatings. "They are doing the whole industry a favour. The more users consider the technology, the more price-savvy they will become and they will shop around. There is a spill-on effect to the other ISPs to upgrade their facilities and take advantage of the market awareness. And with their wholesale and retail divisions, Telstra wins either way."

The money has been well spent, according to Nielsen//NetRatings. Over half a million Australians now enjoy a connection speed that is superior to the standard 56K modem. The research company said that an additional 150,000 home users accessed the Internet via a broadband connection between May and July alone.

"Broadband has benefits which aren't immediately apparent to consumers," Reid said. "Creating demand by giving broadband a higher profile, while playing on that ‘upgrade culture' found amongst all computer owners to encourage the take-up of high-speed access, has certainly had an impact."

Reid expects that the IT channel will reap some of the rewards of this marketing spend. He said that once users have broadband connections, the next logical step is that they will begin accessing content that is power-hungry from a hardware point of view. "It is a natural progression," he said. "Faster speed means more downloads, more demanding applications, and the need for more processing power."

This flow-on effect will take time, however, and Reid believes resellers will gradually see the effects over the next 12-24 months.

Join the newsletter!


Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.
Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.
Show Comments

Brand Post

Most Popular Reviews

Latest Articles


PCW Evaluation Team

Tom Pope

Dynabook Portégé X30L-G

Ultimately this laptop has achieved everything I would hope for in a laptop for work, while fitting that into a form factor and weight that is remarkable.

Tom Sellers


This smart laptop was enjoyable to use and great to work on – creating content was super simple.

Lolita Wang


It really doesn’t get more “gaming laptop” than this.

Jack Jeffries


As the Maserati or BMW of laptops, it would fit perfectly in the hands of a professional needing firepower under the hood, sophistication and class on the surface, and gaming prowess (sports mode if you will) in between.

Taylor Carr


The MSI PS63 is an amazing laptop and I would definitely consider buying one in the future.

Christopher Low

Brother RJ-4230B

This small mobile printer is exactly what I need for invoicing and other jobs such as sending fellow tradesman details or step-by-step instructions that I can easily print off from my phone or the Web.

Featured Content

Product Launch Showcase

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?