US Online Ad Spending Set to Drop for 2009

For 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, 2009

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Social Media Use on Mobile Devices Provides Opportunity for Marketers

One of the fastest-growing mobile Internet activities, social networking, proves to have great impact on mobile Internet usage.

There will be an estimated 141.1 million mobile social network users worldwide by the end of 2009. That number is expected to skyrocket by 2014 to approximately 760.1 million, almost half of the mobile Internet user population.

According to a July 2009 report, Facebook is the top social network website users access on mobile Internet, with a 6.1% reach. MySpace, YouTube and Twitter take the second, third and fourth spots, respectively.

Though the mobile and social media channels are still emerging, causing premature estimates, the impressive numbers and promising user base open up developing opportunities for marketers. Some marketers have prepared to incorporate these channels into their marketing mix strategies, although programs are small and in experimental stages.

Source: eMarketer; November 12, 2009

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TV, Internet, and Mobile Video Viewing On The Rise

TV, Internet, and Mobile video viewing all saw steady increases from Q2 2008 to Q2 2009, with mobile video gaining the most US viewers with a 70% year-over-year increase. Online video usage also increased significantly, and climbed by 12% between Q2 2008 and Q2 2009. While timeshifted TV also saw noticeable gains, standard TV viewing only saw a .9% growth, with a loss of viewers occurring between Q1 and Q2 2009.

Most channels experienced a fluctuation in average viewing time over the last year. Viewing time for users of in home TV increased slightly overall by 2 hours after a loss of 12 hours from Q1 to Q2 2009. This significant drop is most likely due to seasonal viewing patterns and the cyclical nature of TV programming. Timeshifted TV more or less followed the same trend, as would be expected.

Viewing of video on the Internet was one category that experienced steady growth from 2008 t0 2009, with average viewing time increasing an hour to 3 hours and 15 minutes.

Source: eMarketer, September 22, 2009

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Advertisers Hesitant to Sponser User-Generated Videos

Given 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

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posted by Matt Sidman @ Wednesday, August 5, 2009 - 9:37 AM
 

Marketers Need Metrics to IntegrateTraditional and Digital Media

Click on image to see what marketers are satisfied with when it comes to integrating traditional and digital media.


38% of marketers are allocating 11%-20% of their media budget to online media.


The chart below shows a breakout of challenges and barriers of integrating traditional and online media. Click image to enlarge.

Source: eMarketer, April 29 2009

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posted by Harry Gold @ Thursday, April 30, 2009 - 7:16 AM
 

And the Most Influential Media Is...

In five major markets, TV still dominates

Note: n=8,824; respondents were asked for their top three

Note: includes broadcast networks, cable, spot, syndication and local TV advertising

Source: eMarketer, January 21 2009

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Most Common Types of Targeted Advertising

According to a May 2008 study of US Marketers by Compete, most advertisers turn to online advertising to reach specific, targeted customer segments. Second to online media for this tactic is search engine marketing.

The study also found that only 39% of survey respondents currently think that segment-driven marketing is very important in their organization, but 84% believe that it will be more important three years from now.

Source: eMarketer Report, 2008

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posted by Harry Gold @ Thursday, June 26, 2008 - 1:12 PM
 

Recession-Proof Interactive Marketing

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posted by Harry Gold @ Wednesday, May 28, 2008 - 12:46 PM
 

Internet Advertising Revenue Tops $21B

US 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).

Breakdown by industry category is as follows, showing the consumer industry dominating the Internet advertising market with 55%, unchanged from the same period of time in 2006:


Source: Marketing Charts, "2007 Internet Advertising Revenue Report," IAB and PwC.

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posted by Harry Gold @ Monday, May 19, 2008 - 10:48 AM
 

Search, Display, or Both?

Source: Atlas, 2008

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New Media An Important Place To Be Seen

While many traditional media are seeing up to double digit losses over the past year, new media is rapidly growing and becoming influential on consumers. Consider the below study by BIGresearch Simultaneous Media, on purchase influence for electronics, a hot market of high-involvement purchases.


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posted by Harry Gold @ - 9:04 AM
 

Video Sharing Sites a Hot Topic Entering 2008

According to last week's article in AdWeek, "Study: Traffic to Video Sites Doubles," daily traffic to YouTube and other video sharing web sites has nearly doubled in the past year. Factors attributing to this increase include:
  • Increased broadband penetration
  • The popularity video sharing sites have recently gained in men, younger adults and college graduates
  • More videos are online than ever before
  • 22% of Americans say they shoot their own videos, and 14% post them online (3x increase in less than a year)
While the overall traffic number to video sharing sites is up from 33% to a staggering 48%, other audiences are responding extremely well to the newly-popularized online content. The number of teens visiting video sharing sites has gone up by 160%, while the number of women has increased by 120%. Also, discounting older and younger adults, the number of adults aged 30-49 who visit video sharing site increased by 100% in the past year.

This is great news for skeptics about social media, as is the growing presence of Google Universal Search, which includes click-to-play videos on its first page of natural search content, as well as maps, images, etc. Online video will certainly be one of the hottest topics in online media for 2008.

Source: AdWeek, January 2008

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Strongest Media Buys

Email and Search are the strongest advertising media buys for your company
Source: Datran Media, January 2008

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posted by Harry Gold @ Friday, February 8, 2008 - 8:43 AM
 

US Podcast Advertising Spending

By 2012, 8.8% of advertising will be spent on podcasts
Source: eMarketer Report, 2008

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posted by Harry Gold @ Monday, February 4, 2008 - 4:00 PM
 

US Podcast Audience

Active podcast audience is growing

According to eMarketer, the growth of the podcast-user base is being driven by:

  • Greater ease of consumption for podcast content
  • Growing awareness of podcasting
  • Terrestrial radio’s use and promotion of podcasting
  • Increased penetration of portable players
  • The evolution of smart phones and proliferation of affordable mobile data plans (although the majority of podcasting is currently still being done by PC)

Source: eMarketer Report, 2008

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posted by Harry Gold @ - 12:01 PM

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