Ad spending
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Most video-gamers react positively to in-game ads - some 82% say the games are just as enjoyable with such ads as without them - according to a study conducted by Nielsen BASES and Nielsen Games on behalf of in-game advertising network IGA Worldwide . Moreover, integrating dynamic advertisements into videogame environments provides brands a measured lift in consumer awareness and opinion of the products players are exposed to during gameplay, the Nielsen study found ( via Wired). There was, post-play, a 61% increase on average in consumers’ favorable opinions of products advertised in-game, according to the “Consumers’ Experience with In-Game Content & Brand Impact of In-Game Advertising Study.” “With young adults now spending on average six hours a week gaming, advertisers should be excited at how well their messages were embraced and the brands positively perceived,” said Justin Townsend, CEO of IGA Worldwide.
82% of Gamers React Positively to Contextual In-Game Ads
The latest forecast from Forrester Research predicts that interactive marketing in the US will hit nearly $55 billion by 2014 and will grow - at a compound annual growth rate of 17% - from 12% of overall ad spend in 2009 to 21% over the next five years. According to Forrester ’s Five-Year Interactive Marketing Forecast Report, search marketing - which now composes more than half of 2009’s overall interactive spend, will continue to make up the biggest portion of interactive dollars, rising from $5.4 B in 2009 to $31.6B in 2014 at a compound annual growth rate of 15%. Social media marketing and mobile marketing will experience the highest growth rates among the digital tactics, the report stated. Social media, which represents only $716M today, is expected to balloon to $3.1B by 2014, and grow at the highest compound annual rate, 34%.
Forrester: Interactive Marketing to Hit $55B by 2014
Paid advertising on online social networks is expected to drop 3% in 2009, to $1.1 billion, but is expected to rebound next year and begin to emerge from the experimental phase, rising 13.2% - to $ 1.3 billion - in 2010 and going up from there, according to a recent forecast by eMarketer . According to the firm’s new report, “ Social Network Ad Spending: A Brighter Outlook Next Year ,” ad spending on social networks is expected to hit $1.4 billion in 2011. eMarketer’s estimate is slightly more aggressive for next year than Forrester’s, which predicts that social media will account for $935 million in spending in 2010. MySpace Faces Challenges This year’s expected decline is the result of current recessionary conditions affecting most media, as well as continued difficulties at MySpace, which holds the top social network position in terms of ad spending but will shortly be overtaken by Facebook, said eMarketer.
SocNet Ad Spend to Hit Stride in 2010
Google Gets 71% of US Searches in August
Google accounted for 71.01% of all US searches in the four weeks ended August 28 - the most ever, and 11% more than its share in August 2007, Hitwise announced. Yahoo Search, MSN Search and Ask.com received, respectively, 18.26%, 5.32% and 3.45% of searches. From August 2007 to August 2008, Entertainment, Business and Finance, Sports, Online Video and Social Networking categories showed double-digit increases in their share of traffic coming directly from search engines.
US mobile search and display advertising revenues are expected to grow to $3.1 billion by 2013, from $160 million in 2008, representing a compound annual growth rate (CAGR) of 81.2%, according to a forecast report from The BIA Kelsey Group . During the same period, the firm forecasts mobile local search advertising revenues will increase from $20 million to $1.3 billion, a CAGR of 130.5%. The US Mobile Local Media Forecast (2008-2013) also predicts that percentage of mobile searches that have local intent will increase from 28% in 2008 to 35% in 2013, though the local total ad market (across all media) will contract in 2009 and 2010. This will be led by small businesses, which will accelerate the shift to interactive products. The shift to interactive products, combined with a lack of traffic to fulfill budget quotas on geo-targeted search products, will cause publishers to accelerate the building of mobile sites as they look for incremental traffic, The Kelsey Group said.
Mobile Local Search Ad Revenues to Reach $1.3B by 2013
Total measured advertising expenditures in the first quarter of 2009 plunged 14.2% vs. a year ago, to $30.18 billion, according to data released today by TNS Media Intelligence . This plunge followed a 9.2% decline in Q408 as the advertising recession accelerated into the new year. Ad Spending by Medium Local media suffered most, with aggregate expenditures sinking 25.4% in Q109, TNS said.
US Ad Spend Plunges 14.2%; Only Online Posts Growth
Advertisers are now expected to spend only $23.6 billion online this year in the US, according to revised figures from eMarketer , which lowered its estimate from the $24.9 billion it predicted in August because of poor performance in display and paid-search advertising categories. The new figure still represents an increase of 11.3% over 2007 spending, the firm said, noting that internet advertising will still fare better than traditional in 2008. Display Advertising Suffering The revised forecast indicates that display advertising is suffering because many of the vertical industries - such as auto and retail - that are key players for the format are slashing their ad budgets. In August, eMarketer predicted 16.9% growth in display ad spending, but the new predictions show lower growth at 3.9%. Slow growth is expected to continue in this area.
Lagging Display, Paid Search Force Ad Forecast Down
One of the nation's leading sponsors of online media, Rob Wrubel lays out as much as $20 million a month for Internet ads. Over time, his firm's ad buys have supported a wide spectrum of Web content, from video clips of rock bands to coverage of the Iraq war, and an array of online names: Facebook, Google, Yahoo, CBS, MySpace and CNN. Wrubel manages ad spending for the University of Phoenix, a for-profit college that paid more for online display advertising in the United States than any other business over the past year, according to statistics from TNS Media Intelligence. "We are, in fact, everywhere," said Wrubel, who is chief executive of Aptimus, the online ad outfit owned by the university's parent company. He compared their spots to "carpet bombing" and said that "someone once calculated we accounted for 1/64 th" of all online advertising.
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Yahoo Expects Strong Revenue Growth Through 2010
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Will online ads come out ahead after recession? | Tech news blog
SAN FRANCISCO--Online advertising may or may not be a recession-proof business, but some believe it at least will fare better than other ad channels during hard economic times. "In times of recession, marketers move dollars from more traditional media outlets like TV onto Web advertising, where to some extent the CPMs (the cost per 1,000 ad impressions delivered) are lower, and the ability to measure ROI (return on investment) is much higher," said Jennifer Moyer, chief operating officer of Washingtonpost.Newsweek Interactive, speaking during a panel discussion at the Ad:Tech conference here . Jeremy Wright, global director of mobile brand strategy at Nokia Interactive, predicted a similar shift. "The thing we could well see is, a recession could expedite the shift from traditional spending to digital spending. Once those cuts are made in traditional media, we won't see those budgets go back," Wright said. Jeremy Wright, global director of mobile brand strategy at Nokia Interactive
Report: Ad Spending Down 1.7% This Year » Adotas
ADOTAS – Despite an influx of cash from the Olympics and the election, ad spending still declined by 1.7% for the first nine months of this year, TNS Media Intelligence reports. And ad spending during the third quarter of 2008 was off 2.0 percent versus last year.“Media ad spending, which began tiptoeing into negative territory in early 2007, has crossed an inflection point in the past six month as the economic downturn has become more widespread,” said Jon Swallen, SVP Research at TNS Media Intelligence.While much of Adland is focused on tapping into growth markets overseas, three former vice presidents at MDC's Crispin Porter + Bogusky are taking the opposite tack with a new shop called MADE -- as in "made in America." Its focus is on breathing more life into American ... IAB Voices Concern About Regulating 'Data Brokers' by Wendy Davis 72 minutes ago The Federal Trade Commission's call for new restrictions on data brokers could affect a vast array of Web companies, Interactive Advertising Bureau general counsel Mike Zaneis will tell a House panel on Thursday. ... ASICS Sets Sights On Gen Y
Publications - Papa John's One-Day Google Test Was Pie-Sell
Friday isn't just a dumping ground for ratings-challenged shows, according to Andy Fixmer and Edmund Lee. "Fridays offer networks a chance to turn the commercial-skipping DVR to their advantage," they write. "The idea with the schedule shift is that viewers, especially the younger ones marketers like, catch up ... Rodale is resurrecting its men's luxury lifestyle pub Best Life , which went belly-up three years ago. "Rodale is being cautious this time around; Best Life will come out as a 300,000-circulation SIP (special-interest publication) priced at $5.99 for three months starting Oct. 23," according to Lucia Moses. ...
Publications Ad Decline, Rise Of Smartphones Seen As Biggest Tre
eMarketer Again Lowers Social-Net Projection
NEW YORK For the second time this year, online ad industry authority eMarketer has lowered its spending estimate for social-networking advertising for 2008 to $1.2 billion, down from the $1.4 billion benchmark set in May -- which itself was down from an earlier spend estimate of $1.6 billion. Officials at eMarketer said the decision to lower its spending estimates for the segment was driven by the overall poor ad economy and weak performance by MySpace, which saw its revenue projection for 2008 drop by $170 million (from $755 million to $585 million) versus the company’s May numbers. Rival social network Facebook’s revenue estimate also dropped from $265 million to $210 million, indicating that the still unproven ad medium is gaining traction at a slower rate than once expected. Overall, MySpace and Facebook account for 70 percent of social media ad dollars, according to eMarketer.Today’s news about the fall of Lehman Brothers, Bank of America’s planned rescue of Merrill Lynch and insurer AIG’s debt problems isn’t going to have any immediate affect on online ad spending, though residual impact could eventually cause advertisers to pullback somewhat. But for the moment, online ad expenditures are expected to remain stable, since the industry has already been bracing itself for a wider economic retrenchment that started in earnest last year when the mortgage lending crisis first hit ground. For the moment, most agencies are pretty reticent about reacting, opting for the wait and see approach.