But has this change in media consumption been reflected in changes in advertising expenditure using different media? Figure 1.3 also shows that advertising expenditure for the Internet medium lags a long way behind expenditure on TV and press advertising (newspapers and magazines) although it has now overtaken radio and outdoor ad spend. This disconnect or mismatch between medium consumption and TV/press advertising expenditure illustrates the core challenge of Internet marketing - it is how organisations reallocate their resources to best maximise their returns from the Internet.

Our changing buyer behaviour

Figure 1.4 shows there is a dramatic difference in online consumer behaviour in different markets. For the majority of products such as travel and cinema and theatre tickets, people are researching and then buying online, while for some bigger purchases such as cars and properties, people use the internet mainly as a research tool.

Holidays Travel tickets Books Electrical goods Theatre/cinema tickets Concert/Festival tickets CDs

Music downloads Cars Clothes Mobile phones Properties DVDs

Home furnishings Insurance Sports equipment Computer games Financial products Mobile phone content Car accessories Car hire Food/grocery shopping Toiletries/Cosmetics

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