Advertising
US: Mobile Surpasses Print in Time Spent
Dec 13th
Americans adults now spend more time using their mobile phones than reading newspapers and magazines, according to new research from eMarketer.
Time spent on mobile devices is now an average of 65 minutes a day, compared to 44 minutes a day for print (magazines and newspapers combined). That’s a 30% increase on last year.
However, despite this increased use of mobile which now takes up over 10% of an American adult’s media time, yet it attracts less than 1% of ad spend.
This study highlights the discrepancy between consumer behavior and advertising spending which is promising for the business on the Internet and on mobile devices.
US: Online CPG Advertising Increases by 21% In-Stores Sales
Nov 24th
Online CPG advertising has been growing in importance among marketers due to its ad effectiveness.
A new study, conducted over a two-year period, and published in October 2011 by comScore and dunnhumbyUSA, highlights this fact by indicating that exposure to online display ads can lead to improved in-store sales for CPG brands.
CPG campaigns register median offline sales lift of 21%
The study found that that there was a median 21% in-store sales lift among shoppers who had been exposed to online advertising for CPG brands compared to those who had not seen them. Approximately 70% of campaigns generated a double-digit sales lift.
Ads anonymously targeted to in-store brand buyers drive incremental conversion
The results showed an in-store sales lift of 42%, double the lift from campaigns that were not targeted using this approach.
These results demonstrate how targeting algorithms can help improve efficiency and effectiveness in display ad delivery, providing more relevant ads to consumers, improved ROI for advertisers and higher CPMs for publishers.
However it is important to note that the use of traditional media for CPG brands will still be prevalent for a couple of decades from now, but digital media, which is increasingly proving its value, will take a growing share of CPG ad spending in the coming years.
The press release is available for download here
US: 34% of Agency Executives Cited Digital was their No.1 Medium of Choice during Q3 2011, only one point lower than the 35% who cited local TV
Oct 25th
For the first time since being tracked, digital media (including online, social and mobile) has approached parity with television as the most important medium among agency executives, according to the latest quarterly survey from Strata. Indeed, 34% of US agency executives cited digital as their No. 1 medium of choice during Q3 2011, only one point lower than the 35% who cited local TV.
The survey indicates that digital may be at the tipping point of overtaking all other media in terms of importance. According to Strata, this growing role of digital in agency and client organizations is driven mainly by social and mobile.
About the methodology: The findings are based on a segment of more than 900 agencies that process about $50 billion worth of media through Strata’s systems in the United States.
Display Advertising Sales Based on RTB will Experience Strong Growth Until 2015 in Europe
Oct 18th
According to IDC forecast, by 2015, Real-Time-Bidding (RTB) sales will quadruple from 2011 levels in the UK and quintuple in Germany and France.
The study highlights that the main driver of this development is an improvement in ROI for both publishers and advertisers:
• Industry executives at both publishers and ad agencies reported an increase in CPM between 15% and 300% depending on the campaign.
• Agencies executives reported improvements in ad effectiveness anywhere between 20% and 150%, depending on the campaign and the KPI employed (CTR, CPA, conversions).
IDC forecasts that RTB-based spending within the display ad segment will grow significantly between 2011 and 2015 and will stand for:
• 27% in the United States in 2015 (up from 10% in 2011)
• 25% in the UK (up from 6%),
• 21% in France (up from 4%),
• 20% in Germany (up from 4%).
The Gap Between Users and Publishers in Mobile Adoption
Oct 3rd
According to eMarketer estimates, more than 40% of global mobile users go online using their phones each month. However publishers seem slow to make their content available in mobile-optimized formats. Indeed, according to a research from Company Data Trees, 25.7% of the top 10,000 publishers* on Alexa had a mobile version in September 2011. Even if this percentage has grown by 75% in the last 9 months, it remains low compared to the 40% of mobile internet users.
It seems that some publishers are missing the opportunity of the mobile market in terms of audience and revenues.
*web publishers are definied as websites that sell ad impressions, which comprise approximately 66% of all websites
US: This Year, Mobile Ads Will Overtake Social Ads and Email Marketing
Aug 31st
According to a new report from Forrester Research titled “US Interactive Marketing Forecast,
2011 To 2016”, spending on mobile display advertising and search will overtake email and social this year to reach $1.6 billion in revenues. Mobile ad spending will continue to grow at a 38% CAGR to hit $8.2 billion in revenues by 2016 in the United States.
US: More than 9 of 10 Media Executives Predict Digital Revenue Will Rise This Year
Aug 5th
According to KPMG’s annual Communications and Media Industry Business Climate Survey. 94% of media executives in the US expect an increase in digital revenue in 2011. Of those surveyed, 37% expect their companies to grow digital revenue by more than 10%.
Optimism for digital and combined revenues is picking up among media executives according to KPMG which is in line with other forecasters such as:
• eMarketer which predicts that the US online ad spending will grow 20.2% in 2011,
• MAGNAGLOBAL expects a 15.6% rise,
• IDC forecasts an increase of 13.6%,
• ZenithOptimedia predicts growth of 12.6% .
Note: The KPMG survey was conducted in the U.S. in May-June – 2011 and reflects the responses of 101 primarily C-level and senior executives at communications and media companies. Of the 101 respondents, 66 percent are in companies with revenues exceeding $1 billion and 34 percent are companies with revenues in the $100 million-$1 billion range.
Global Online Ad Spend: Forecast Revised Upwards
Jul 12th
Even if all the advertising industry experts have recently lowered their revenue estimates for the global advertising market in 2011 for two main reasons, namely the earthquake in Japan and political issues in the Middle East. However, they all do agree that the recovery is gradually strengthening in 2011, with an average growth rate estimated at 5% for the overall advertising market.
However, (with the exception of ZenithOptimedia which released its new 2011 advertising expenditure forecasts yesterday), all the recent online ad spend growth predictions have been revised upwards in 2011. Alongside this, the internet is estimated to be the medium which should register the highest growth rate in 2011 with an average global growth rate of 15%.
The main predicted drivers of online growth will be:
• increased advertising formats, mainly video.
• multiplicity of channels, such as social media and mobile.
• increased use of targeted campaigns, such as retargeting and local advertising.
Global Mobile Advertising Revenues Set To Double This Year To $3.3 Billion, According to Gartner
Jun 22nd
Worldwide mobile advertising revenues are projected to more than double in 2011 and reach $3.3 billion, compared to $1.6 billion in 2010 – according to a new report from Gartner entitled “Forecast: Mobile Advertising, Worldwide, 2008-2015”.
Video and audio mobile ads are the fastest growing segment, while ads associated with search and maps will deliver the highest overall revenue.
However, even if mobile proves to be the fastest-growing formats, Gartner’s forecast for 2015 could be overstated when compared to other similar data and research. Gartner predicts mobile advertising revenue will reach $20.6 billion by 2015 compared to an $11 billion figure estimated by Juniper Research.
Clearly Mobile be a key driver of the overall growth in online ad spend moving forwards, but it’s unlikely to be to the extent that Gartner are currently forecasting and the overall figures presented may need some consideration.
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