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The Future of Social MediaSocial media has grown increasingly popular in the past few years and has had a significant effect on the way companies do business. In the next few years, more changes will roll out as social media efforts expand outside of a company's marketing department into all aspects of a company's business.Debra Aho Williamson, an analyst for eMarketer, says advertising will not be the primary revenue driver and notes that others have said advertising has failed as a business model for social media.  Rather, the business models that show the strongest potential are in the areas of analytics, search and television. Additionally, location will become more important to social media with strengthened brand monitoring efforts. Despite the future changes to social media, one thing will remain the same: the source, or its users. “The voice of the consumer is only going to get louder and stronger,” said Ms. Williamson. “It will shape what social media is and what it will become. Not too long ago, a company might have made major changes to its products or services based on a few focus groups, some financial planning and a degree of gut instinct. Social media has already changed all that. And more changes will come.” Source: eMarketer; February 15, 2010 Labels: Advertising Spending, Marketing Trends, Social Media 0 comments. Click here to post comments. US Online Ad Spending Set to Drop for 2009For the first time since 2002, online advertising spending in the US is set to drop by 4.6%, with marketers spending $22.4 billion in 2009, compared to $23.4 billion in 2008. However, due to a recovering economy and changes in how marketers and public use media, online ad spending is expected to grow 5.5% to $23.6 billion in 2010. Each component of online ad spending reacts differently to these changes. For instance, classified ad spending is supposed to decline 30.2% in 2009, while video ad spending will grow between 34% to 45% each year between 2009 and 2014. The high growth rate in video ad spending is most likely due to videos becoming a main form of digital brand advertising.  Unfortunately, total media advertising spending will decline by 14.6% in 2009, with an estimated spending of $163 billion - the lowest total since 1999 - according to a report by eMarketer. Source: eMarketer; December 11, 2009Labels: Advertising Spending, Online Media 0 comments. Click here to post comments. Massive Revenue Growth Ahead for FacebookFacebook's revenue is expected to surpass $500 million by the end of 2009, a number that is only a fraction of what Google generated last year - $21.7 billion; however, with the right strategy, Facebook may very well find themselves on the same level as larger, publicly traded tech companies.According to a study by Piper Jaffray & Co., local online advertising spending is expected to increase over the next few years, with an estimated $19.18 billion in spending by 2013, compared to only $14.47 billion in spending for national online advertising.  Since local businesses have repeatedly found success with Facebook's advertising platform, Facebook can dominate the local advertising space if the trend continues. Furthermore, with a growth in brand advertising space and a solid virtual platform, it is likely Facebook's revenue will eventually match or even surpass Google's. Though there has been some uproar due to Facebook's continually changing platform, the social media site maintains a large active user base that will enable a revenue explosion. Click here to read the Unofficial Facebook Resource blog post. Source: The Unofficial Facebook Resource; November 4, 2009 Source: eMarketer; November 3, 2009 Labels: Advertising Spending, Facebook 0 comments. Click here to post comments. US Mobile Advertising to Increase 388% by 2013Spending on advertising and marketing within mobile channels has historically lagged behind overall mobile phone usage and adoption rates. According to eMarketer, however, this trend is set to change over the next four years, with steady growth expected for this still developing industry.eMarketer predicts a 30% increase in marketing and advertising expenditure for 2009 with total expenditure rising to $416 million. A positive overall long-term outlook held by many marketing experts in the mobile industry places total advertising outlay at $1.56 billion by 2013, an increase of about 388% from 2008.  Broken down by format, eMarketer expects Search to experience the most growth, jumping from 18% advertising spending share in 2008 to 37% in 2013. Messaging, on the other hand, is predicted to lose its currently prominent share of expenditure, dropping to only 28% in 2013.  Source: eMarketer, September 23, 2009 Labels: Advertising Spending, Mobile Web 0 comments. Click here to post comments. Internet Advertising to Overtake Print in 2011Newspaper advertising, long holding the top share of US advertising spending, is predicted to be overtaken by online advertising in 2011. This year, video game advertising is expected to see the most growth, jumping from .3% to .5% of total US advertising spending share. Cinema and mobile advertising are also expected to experience steady growth over the next couple of years. Advertising for yellow pages (print) is also predicted to decrease substantially, losing about 1.5% of its share come 2012. Source: eMarketer, September 21, 2009 Labels: Advertising Spending 0 comments. Click here to post comments. Advertisers Hesitant to Sponser User-Generated VideosGiven the popularity of online video services such as YouTube and Google Videos, one could make the assumption that these services also produce the greatest advertising revenue. The graph below counters this point, revealing that in reality broadcaster networks possess the largest revenue share. By 2013, US ad-supported online TV revenues are predicted to jump from $448 million in 2008 to $1.45 billion, a total increase of about 224%.  The overall spending in online video advertising is also projected to grow significantly, and by 2013 reach as high as $4.09 billion.  The amount of revenue that TV companies receive in ad revenue is still small in comparison to the funds they pull in through traditional advertising. However, some analysts predict this gap to close in the next few years. Source: eMarketer, August 5, 2009 Labels: Advertising Spending, advertising tactics, Industry, Online Media, Online Video, Social Media, YouTube 0 comments. Click here to post comments. Mobile Advertising on the RiseAccording to the below graph, US mobile advertising spending is predicted to jump to $3.3 billion in 2012. That's about a 414% increase in expenditure compared to 2008. It is interesting to note that certain industries utilize mobile advertising more than others. In particular, broadcasting and cable TV, movies and entertainment, and automobile manufacturers held the number one, two, and three spots respectively in overall share.  When it comes to monetization of these ads, industries such as downloads and real estate have 100% of their mobile ad inventory paid for. However, Home/family struggles the most, managing to reach a mere 43%.  As the number of mobile phone users continues to grow, companies would be wise to reconsider their overall marketing strategy and invest a significant portion of their budget in mobile advertising. Source: eMarketer, August 4, 2009 Labels: Advertising Spending, advertising tactics, Marketing Trends, Mobile Web 0 comments. Click here to post comments. Traditional Ad Spending on a Steep Decline...... but the Internet still looks promising!Ad spending was originally forecasted in April 2009 to decline by 6.9% this year, but recent studies show it may be worse than we thought... Zenith is now estimating a drop of 8.5% worldwide.   Zenith now predicts total worldwide spending for 2009 will be $456.5 billion, down from nearly $500 billion last year.  Although some markets may be declining, others are growing. The internet is one medium that is not seeing a decrease in ad spending this year... it is actually growing (rising to an estimated $56.8 billion worldwide!).  As traditional media continues on this downward slope, digital media is only gaining speed. The internet has given brands an opportunity to connect with customers in a way traditional media couldn't.Source: eMarketer, July 13, 2009 Labels: Advertising Spending, Industry, Internet Future, Internet Growth, Media Buying 0 comments. Click here to post comments. 34 Million Moms OnlineSince mothers are obligated to stay on top of the trends of their children, they have proven to be some of the most savvy internet users around. Over 34 million moms are online participating in social networking, researching products, shopping online and absorbing as much information as possible.Marketers must realize mothers are usually the key decision makers for family purchases, so they activities moms participate in across the web influence household purchases greatly.    Source: eMarketer, June 8, 2009 Labels: Advertising Spending, Internet Behavior, Internet Demographics, Internet Usage, Marketing Trends 0 comments. Click here to post comments. Trust Word-of-MouthNow, more than ever, trust is the top priority of consumers in the U.S. Last year only 10% of respondents believed advertisers were trustworthy, and as social media technologies create even more transparency this percentage has the potential to change dramatically.Word-of-mouth proves to be the most influential way for companies to market their brands since usually the most trusted source of information by consumers is recommendations from friends. Marketers should consider integrating word-of-mouth tactics across campaigns to allow positive feedback about their brand image to spread among friends virally.   Source: eMarketer, June 8, 2009Labels: Advertising Spending, Internet Behavior, Internet Demographics, Marketing Trends, ROI 0 comments. Click here to post comments. Hollywood Online Ad SpendingMovie studio advertising spending is going up and going online. eMarketer estimates that slightly more than $16 billion will be spent by movie studios on ads in 2009, climbing to $18.6 billion in 2013.   Source: eMarketer, June 3, 2009 Labels: Advertising Spending, Industry 0 comments. Click here to post comments. B2B Marketers Turn to Digital TacticsNow that the downturn is in full swing—and some budgets are decreasing—marketers are being more selective as to where they deploy their marketing dollars. For most that means going online.  Source: eMarketer, May 27, 2009 Labels: Advertising Spending, Business-to-Business, Industry, Marketing Trends 0 comments. Click here to post comments. Are iPhones Good for Advertising?  Source: eMarketer, May 26, 2009 Labels: Advertising Spending, Marketing Trends, Media Buying, Mobile Web 0 comments. Click here to post comments. Stopping the Presses?Newspaper sales are taking a dive because readers just aren't interested in waiting to get the news, when they can simply go online and get up to the minute reports. National newspaper revenues have plummeted between 2004 and 2008 -10.7 percent. As for Canada, newspapers are doing slightly better than the U.S- but not by much. Only 5% of Canadian marketers planned to increase newspaper budgets, while 32% decided to spend less this year. The rest of these markets have decided to stay idle and hold off making changes at this point. Click on image to enlarge.  Source: eMarketer, April 13, 2009Labels: Advertising Spending, Online Newspapers 0 comments. Click here to post comments. Online Advertising Pushes ThroughMarketers are spending more of their advertising spending online due to the economies current condition. By 2013, there is a projected 15% increase in online advertising. Labels: Advertising Spending, advertising tactics, Internet Behavior 0 comments. Click here to post comments. Why Now Is Not a Good Time to Slash Your Marketing Research BudgetAccording to eMarketer, increasing or maintaining search marketing is very important in these economical times. Click on the image below to see the 2009 breakout of change in online marketing spending. Below shows the different areas of market research spending for 2008. Click image to enlarge.  Source: eMarketer, March 31 2009Labels: Advertising Spending, Email Marketing, Marketing Trends 0 comments. Click here to post comments. Marketers Moving to Social MediaMarketers are now changing their tune about social media sites. 63% of the companies surveyed planned to increase their social media marketing budget in 2009. Note: *vs.prior year,** North America (73%), Europe (17%), Asia-Pacific (9%) and South and Central America (1%)Social networking advertising spending worldwide is and will continue to grow throughout 2013.  Note: growth rates calculated based on unrounded figuresBelow is a chart showing tactics used by best-in-class companies worldwide. 39% established a method for engaging consumers in online conversation, while only 18% establish a method for driving brand advocacy/customer referrals.  Source: eMarketer, March 23 2009Labels: Advertising Spending, Social Media, Social Networking 0 comments. Click here to post comments. Everybody Loves Social Networking, Except Some AdvertisersIn 2008, $2 billion was spent advertising on social networking sites, and that is expected to grow to about $3.5 billion by 2013. Europe has increased its socializing by 13.6% between 2007 and 2008. To see the breakout by countries, click on the below graph to enlarge.  Source: eMarketer, March 19 2009Labels: Advertising Spending, advertising tactics, Social Media 0 comments. Click here to post comments. Tech Marketing Budget OutlookBelow are surveyed results of how people say their tech marking budget will change from 2008. Both the first and second half of 2009 show that most will decrease spend. Only 14% increasing budget in the first half of 2009 and 18% in the second half of a result of the current recession.  Source: B2B Magazine, March 9 2009Labels: Advertising Spending, Marketing Trends 0 comments. Click here to post comments. The Social Media Oscar Race$64.3 million was spent on the advertising for the five Best Picture nominees for an Oscar in 2008. Below you can see the breakout where Benjamin Button had the most ad spending $31.0 million in the US. Regardless of the money spent for advertising, the night of the Academy Awards, social networking took full effect with viewers twittering about these films. Slumdog Millionaire lead with 6,369 tweets during the broadcast. Below is the breakout of the five film nominees:* Slumdog Millionaire: 6,369 * Milk: 3,617 * The Curious Case of Benjamin Button: 1,110 * The Reader: 814 * Frost/Nixon: 543 Source: eMarketer, March 2 2009 Labels: Advertising Spending, Social Media, Social Networking 0 comments. Click here to post comments. Why Retail Loves E-MailPromotional e-mails sent by retailers were slowly increasing throughout 2008. The largest numbers came in at the end of the year in December with 14.6 e-mails sent on average to consumers, doubtlessly due to the holiday season and recession. As you can see below, the majority of consumers e-mail grew during the 2008 holiday season  Note: *November 8-December 19 2008 Source: eMarketer, February 23 2009 Labels: Advertising Spending, advertising tactics, Email Marketing 0 comments. Click here to post comments. Local Web-Ad Market Cools DownLocal-ad market growth is expected to minimize compared to recent years. Predictably, the recession has forced many local businesses to cut down on their ad spending. Source: The Wall Street Journal | Media & Marketing, February 18 2009
Labels: Advertising Spending, advertising tactics 0 comments. Click here to post comments. Eyeballs Are Great, but Revenues Would Be BetterUnsurprisingly, topping the list of video properties are Google sites, which owns YouTube with over 100 million viewers in December 2008. Despite this large statistic, revenue does not equate- short video clips and "untrusted content" videos do not bring in the revenue where as a longer-form trusted video would. Nonetheless, advertising spending will continue to grow throughout 2013 with a projected $4,600 million spend on online video advertising.  Source: eMarketer, February 12 2009Labels: Advertising Spending, Online Video 0 comments. Click here to post comments. E-Mail Performance Steady  Source: eMarketer, January 30 2009Labels: Advertising Spending, Email Marketing 0 comments. Click here to post comments. |
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