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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. Ad Network Prices Take a HitBut past performance is not necessarily indicative of future results. Note: (1) <1> Source: eMarketer, January 22 2009Labels: Advertising Spending, advertising tactics 0 comments. Click here to post comments. Inventory: Moving Products OnlineIncreasing spending to reach viewers  Source: eMarketer, January 9 2009Labels: Advertising Spending, advertising tactics, Email Marketing, Online Video, Social Media 0 comments. Click here to post comments. U.S Ad Spending Totals By Medium  Source: Advertising Age, December 29 2008 Labels: Advertising Spending, Industry, Marketing Trends 0 comments. Click here to post comments. B2B Marketers Plow Ahead in 2009  Source: eMarketer, December 19 2008Labels: Advertising Spending, Business-to-Business, Marketing Trends 0 comments. Click here to post comments. Social Networks: Millions of Users, Not so Many Marketers Source: eMarketer, December 17 2008Labels: Advertising Spending, advertising tactics, Social Media 0 comments. Click here to post comments. E-Mail Marketers Get in the Spirit  Source: eMarketer, November 26 2008Labels: Advertising Spending, E-commerce, Email Marketing 0 comments. Click here to post comments. Behind the Numbers: MySpace and Facebook Source: eMarketer, November 19 2008Labels: Advertising Spending, advertising tactics, Social Media 0 comments. Click here to post comments. Are Online Political Ads Winners? Note: (1) includes social networks and user-generated content; (2) display ads only; (3) includes online advertising and marketing communications; (4) advocacy groups; (5) includes search and display ads onlySource: eMarketer, November 4 2008 Labels: Advertising Spending, Search Behavior 0 comments. Click here to post comments. Online Ad Spending Will Keep Growing Source: eMarketer, October 27 2008Labels: Advertising Spending, Internet Future 0 comments. Click here to post comments. Getting Clever About Social Media Source: eMarketer, October 24 2008Labels: Advertising Spending, Social Media 0 comments. Click here to post comments. Is Online Safe from the Meltdown? Source: eMarketer, October 9 2008 Labels: Advertising Spending, Blogs, Internet Future 0 comments. Click here to post comments. B2B Marketers Ready to Spend Online Source: eMarketer, September 29 2008Labels: Advertising Spending, Business-to-Business 0 comments. Click here to post comments. Video Ad Spending: Building to Steep Growth Source: eMarketer, September 23 2008Labels: Advertising Spending, Blogs 0 comments. Click here to post comments. Weak Economy Forces Revised Ad ForecastsSmaller budgets  Source: BtoB Magazine, September 15, 2008Labels: Advertising Spending, Blogs 0 comments. Click here to post comments. How Many TV Ad Dollars Can Online Video Advertising Grab?  Source: eMarketer, September 12 2008Labels: Advertising Spending, Blogs, Internet Future 0 comments. Click here to post comments. Interactive Media Share of Ad Spend Growing WorldwideAccording to a study by WPP's Group M, interactive media’s share of worldwide advertising expenditures is expected to hit 15% in 2009, up from only 6% four years ago. This comes as traditional media's share of ad spend continues to decline, making interactive media one of the only, and certainly the major, source of growth in overall advertising spending. The report also found that nearly 45% of 2007 interactive ad spending was display, which is expected to slightly decrease in favor of paid search advertising, which accounted for 38% in 2007.Source: MarketingCharts Labels: Advertising Spending, Internet Growth, Paid Search 0 comments. Click here to post comments. Auto Industry Advertising SpendingAccording to eMarketer, the auto industry is embracing internet advertising more than ever. While spending on television, magazines and newspapers have all shown a decreasing trend since 2005, internet ad spending increased 57% from 2005 to 2006 and another 40% from 2006 to 2007! At the other end of the spectrum, newspaper advertising spending was cut in half between 2005 and 2007.Source: eMarketer Report, June 2008 Labels: Advertising Spending, Marketing Trends 0 comments. Click here to post comments. Internet Advertising Revenue Tops $21BUS Internet advertising revenues hit a record high of $21.2 billion in 2007, up 26 % from 2006, according to a recent report released by the Interactive Advertising Bureau and PricewaterhouseCoopers.The breakdown of each Internet advertising format was as follows:  Most impressive is the Internet advertising revenues in 2007 reaching $5.9 billion, an all-time high for a single quarter and a 24% increase over the same period in 2006. Internet advertising revenues have now been experiencing strong growth for four consecutive years (13 consecutive quarters). 
  Source: Marketing Charts, "2007 Internet Advertising Revenue Report," IAB and PwC. Labels: Advertising Spending, Industry, Online Media 0 comments. Click here to post comments. U.S. Online Marketers'* Planned Spending in the Next Year Note: *ad:tech attendeesLabels: Advertising Spending, advertising tactics 0 comments. Click here to post comments. Change in Search Marketing Spending Source: B to B magazine Labels: Advertising Spending, Search Engine Marketing 0 comments. Click here to post comments. U.S. Online Video Advertising Spending, 2006-2011 (% of total ad spending) Source: B to B magazine Labels: Advertising Spending, Online Video 0 comments. Click here to post comments. U.S. Online Social Network Advertising Spending Source: B to B magazine Labels: Advertising Spending, Social Media 0 comments. Click here to post comments. U.S. Online Advertising Spending 2006-2011   Source: eMarketer Labels: Advertising Spending 0 comments. Click here to post comments. Online Advertising Still Working For Pharmaceuticals, Even As Sales SlowAccording to IMS Health's "US Pharmaceutical Market Performance Review." the sales growth of the US prescription drug market slowed from over 8% in 2006 to 2.8% in 2007, its lowest growth rate in decades.Despite, or possibly as a result of, this slowing growth, pharmaceutical marketers surveyed by Guideline-Med Ad News in March 2007 said that online ads were already more important to them than traditional media saying this trend would solidify through 2010.  A results-oriented medium, online marketing is becoming increasingly important to US marketers in tough economic times. The pharmaceutical industry represents one of many examples of this trend.Source: eMarketer Report, 2008 Labels: Advertising Spending, ROI 0 comments. Click here to post comments. Changing TimesThe biggest U.S. auto manufacturers are shifting their advertising budgets in the midst of tough times for revenue. Note the major shifts away from expensive, traditional media and towards accountable, data-driven, ROI-producing Internet advertising.  (Click image to enlarge)Source: TNS Media Intelligence Labels: Advertising Spending, ROI 0 comments. Click here to post comments. Online vs. Traditional MediaAccording to eMarketer, "the nation’s largest advertisers are shifting more of their budgets from traditional media to the internet. Among Advertising Age’s '100 Leading National Advertisers,' 69 allocated a smaller share of their total ad budgets toward the four traditional measured media (TV, radio, newspapers and magazines) in 2006 than in 2005. 58 of those advertisers both decreased their spending share on the four traditional media and increased the share going to the internet."eMarketer further reports that while the top 100 advertisers spent nearly $230 million less, combined, on the traditional four media in 2006 compared with 2005, they spent a combined $558 million more on internet advertising.  Search, display and classified ads account for the largest advertising share of Internet spending, according to eMarketer’s projections for the 2006-2011 period. eMarketer reports, "Paid search’s share of online ad spend will continue to hover in the 40 percent range through 2011. Display ads (such as static banners) will generate about 20 percent of internet ad revenues through the decade."David Hallerman, author of the report, explains that the economic downturn will affect online advertising much less than traditional media advertising. "In contrast to the 26.7 percent growth projected for internet advertising in 2007, total media ad spending will increase only 2.1 percent." eMarketer further explained that the reduced spending due to economic crunch will open the doors for much more paid search because of its high accountability, as opposed to display ads, or even moreso, traditional media. This trend will be especially visible in the mortgage industry. Source: eMarketer Report, 2008 Labels: Advertising Spending, Internet Growth 0 comments. Click here to post comments. Newspapers Moving Online A new report by Nielsen Online for NAA (taking into account home and work internet usage) found that:
Not only does this data show the growing shift of newspaper readership from print to online, it also shows the importance people are beginning to place in their online news sites, and the growing relevance of advertising in online newspapers as opposed to their ever-decreasing print counterparts. Not only are people turning to the internet for their news, but they are spending more time on newspaper websites, increasing the value of ads placed on these sites. The growth in Q4 of 2007 shows incredible promise for newspaper websites and especially advertisers in the upcoming year. Labels: Advertising Spending, Industry, Internet Future, Online Newspapers 0 comments. Click here to post comments. Strongest Media Buys Labels: Advertising Spending, Email Marketing, Internet Statistics, Media Buying, Online Media, Paid Search 0 comments. Click here to post comments. Email Marketing ROI Expectations Source: Datran Media, January 2008Labels: Advertising Spending, Email Marketing, ROI 0 comments. Click here to post comments. Email Marketing GrowthAccording to Datran Media, companies largely plan to increase spending on email marketing in 2008 compared to 2007. Source: Datran Media, January 2008Labels: Advertising Spending, Email Marketing, Internet Growth 0 comments. Click here to post comments. Tracking Capabilities in Question by Many Interactive MarketersAccording to an interactive marketing survey by Sapient, senior-level marketing respondents do not feel very confident that their organization can track campaigns across multiple channels in real-time. The following table illustrates the responses:
The two channels in which marketers place the most confidence in their tracking ability, according to the survey, are email and search. 38% of respondents said search resulted in the highest ROI to their organizations. 28% of marketers plan to increase search spending in 2008. Labels: Advertising Spending, Analytics, Integration, Social Media 0 comments. Click here to post comments. US Podcast Advertising Spending Source: eMarketer Report, 2008 Labels: Advertising Spending, Internet Growth, Online Media, Podcast 0 comments. Click here to post comments. |
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