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Facebook will grow its net US display revenues this year by another 80.9% to $2.19 billion, eMarketer estimates. This will push it past Yahoo! to become the No. 1 display ad-selling company in the country. This near-doubling of display ad revenues is actually a slowdown in growth for the social networking giant, which posted triple-digit display ad revenue growth in 2009 and 2010 when its display revenues were at relatively low levels. Next year, growth will slow further to just 31.3%.
Social networking via mobile phones has been growing quickly in the US for over a year, and it still has the momentum of one of the fastest-growing content categories on mobile. March 2011 research from comScore found that growth in unique users of mobile social networking over the previous three months was nearly 46%, compared to 43.3% for maps and 40.2% for weather. Social networking was not only the largest growth area during the period, but it was also the only one of the top three that is used for entertainment rather than utilitarian purposes. The rising adoption of smartphones is helping contribute to the popularity of mobile social networking. comScore reported that 31% of mobile users had a smartphone in March, and nearly half of all new mobile device purchases were smartphones, up from just 29.3% last year. eMarketer also estimates 31% of mobile users will be smartphone users this year.
The publishing industry has been rocked by the shift from print to online access, a development that has been notoriously challenging to monetize. Consumers have shown little appetite to pay for content on the web, and the soft economy has taken a toll on the online advertising-based models that many publishers embraced as a replacement for declining print income. So the arrival of ereaders and tablets comes at an opportune time for publishers. The Kindle and iPad have ushered in a new device market and consumers have responded by buying more digital content. eMarketer estimates the US installed base of ereaders will be nearly 21 million by the end of 2011, a 62.3% increase over last year.
It took older web users a few years to begin social networking after it had been popularized by the younger set, but they soon became the fastest-growing segment of users on sites like Facebook. Now it appears they are also growing into a specific social media habit that had been more popular among younger adults: connecting with brands. As recently as September 2010, based on research from Wedbush Securities , it seemed as if Facebook engagement with brands just might not interest users over age 55.
Online video viewers often cite fewer ads as one reason they watch content online rather than on traditional television, yet many publishers want to increase video ad loads and advertisers want to make sure their placements are being viewed. Research exploring how to satisfy all three constituencies indicates that while the length of online video ads matters for completion rates, the length of the content surrounding it is also key for this metric. A study by content delivery network Limelight Networks of video ads served during the first half of 2010 found that 15-second ads were more than 20 percentage points more likely to be viewed to completion than 30-second ads. But examining how ads of different lengths are viewed with content of different lengths gives a fuller picture of video ad tolerance. Ad management technology provider FreeWheel found that 15-second and 30-second ads were completed at almost identical—and very high—rates when supported by long-form content.
Advertising spending around the world is projected to increase 3.9% this year to more than $494 billion, eMarketer estimates. Total spending on directories, internet, magazines, newspaper, outdoor, radio and TV advertising will continue to grow at steady single-digit rates through 2015, according to the forecast. By that year, advertisers worldwide will be spending almost $600 billion on these media. eMarketer forms its estimates of advertising spending through a meta-analysis of data from dozens of sources, including research firms, ad agencies, investment banks and governmental organizations, as well as an analysis of global trends in the economy and advertising markets. US online ad spending is set to have healthy increases through 2015, including a peak gain of 20.2% this year, but online ad spending worldwide will grow at a stronger rate throughout the period, eMarketer estimates.
Search advertising still takes the greatest share of online ad dollars by far, but display spending is posting solid gains. The steep growth in online video ad spending, combined with solid increases for banners, will help display ads eventually top search spending. Total online display ad spending, including online video, banner ads, rich media and sponsorships, has already brought the category in close range of search. This year, US advertisers will spend $14.38 billion on search ads and $12.33 billion on online display, up 19.8% and 24.5%, respectively, over 2010.
Social media has quickly moved up the ranks of top marketing tactics among small and medium-sized business (SMBs). April 2011 research from Pitney Bowes indicates that by some measures of desirability, it’s in close competition with email. When asked why they used several marketing tactics, US SMBs were most likely to say they chose social media marketing for its cost-effectiveness (54%) and ease of use (53%).
While the vast majority of coupons are still clipped from Sunday newspaper inserts, digital coupon usage is growing rapidly. In 2011, nearly half of all online consumers will redeem digital coupons online or in a store, eMarketer forecasts. Increased usage and acceptance of mobile coupons will ensure future digital coupon growth. “Several factors account for the rise of digital couponing,” said Jeffrey Grau, eMarketer principal analyst and author of the new report, “Coupon to Groupon: New Channels for an Old Tradition.”
Growth in daily deal site usage is still rapid, according to April 2011 site rankings from Compete . The analytics firm reported that visits to Groupon rose 5.4% over March and a dramatic 655.8% over the previous April to 24 million uniques. At the same time, competitor LivingSocial increased unique visitors by 32.7% month over month and 418.4% year over year.
A digital revolution in couponing coupled with the belt-tightening of the recession have combined to make coupons cool among more than just those clipping the Sunday circular. Digital coupon usage is now firmly a part of the online shopping experience of millions of US consumers. eMarketer estimates that by the end of 2011, nearly half of US adult internet users, or 88.2 million people, will have redeemed an online coupon or code for use either online or offline in the past year. By 2013, 96.8 million adults will redeem an online coupon. “Consumer brands are accustomed to promoting their products in stores and in newspaper inserts,” said Jeffrey Grau, eMarketer principal analyst and author of a forthcoming report on online couponing. “But as more shoppers make purchase decisions online before taking a shopping trip, brands are following them onto the internet.”
Mobile still doesn’t measure up as “important” to most marketers, according to an April 2011 survey by King Fish Media sponsored by HubSpot , Junta42 and Maxymiser . But that could change as more marketers get on board with a mobile strategy. More than six in 10 North American marketers plan to have one within the next year, compared with just a third who already do. When asked specifically about the ROI of their mobile advertising programs, a plurality of North American companies said they were doing about as well as expected. A quarter of respondents said mobile advertising wasn’t meeting expectations, however, compared to just 13% who said results were better than they had hoped.
Whether it’s exchanging stories about shopping bargains, offering product reviews or sharing parenting advice, moms love to trade information and engage in online conversations about themselves and their families. But moms say they would be significantly more inclined to refer a brand or product to friends when offered an incentive. Marketers can boost engagement and motivate moms to spread word-of-mouth about products by providing coupons, discounts, deals and other tangible financial rewards. lucid marketing reported in April that only 34% of moms surveyed in January 2011 said they regularly use tell-a-friend requests when asked by a business or website, while 63% do so occasionally. However, if offered an incentive, nearly 66% of moms said they would be more likely to refer a brand or website to others.
Display campaigns may not often get credited with the last click before a conversion, but their value as a branding tool continues to be borne out. Research from audience data intelligence firm Lotame indicates a significant lift in intent to recommend a product among internet users who have seen a display ad. Lotame commissioned KN Dimestore , a division of Knowledge Networks , to poll web users exposed and not exposed to several ad campaigns about whether they would recommend the product advertised. Overall, there was an almost 24% lift in likelihood to recommend a product among the exposed group. Campaigns that feature expandable rich media ads performed best, with a 34.4% lift.
Checking in to location-based services on a mobile phone is still not a mainstream activity, but adoption is increasing, especially among smartphone users—those most likely to use the apps that check-ins are typically tied to. Female smartphone users’ adoption of the check-in is somewhat surprising in light of research on mobile privacy and security , which has sometimes found women are more sensitive than men to disclosing personal information like their location. But both men and women have indicated privacy was a concern when it came to location-based apps. Smartphone users who check in to location-based apps also indexed higher for participation in every other mobile activity studied by comScore. From overall browser and application usage to ad recall and mobile shopping activities, check-in service users are out in front of the general smartphone population. Check-in service users, for example, are 86% more likely to access mobile travel services than average smartphone users.