Is the ad downturn coming to a close?
US online ad spending revenues were down 5.3% year over year, to $10.9 billion in the first half of 2009, according to figures from the Interactive Advertising Bureau (IAB) and PricewaterhouseCoopers (PwC).
David Hallerman, eMarketer senior analyst, expects Internet ad spending to continue falling during the second half of the year, but believes the ad market is bottoming out. “While our preliminary estimates point to another decline in the year’s second half, expect that to be less than the first half’s 5.3% drop,” he said.
Indications are that the economy is starting to move forward, with recent upticks in consumer spending. But it may take months before unemployment drops, and turning the corner will be a slow process.
Monday, October 12, 2009
Tuesday, October 6, 2009
The Future of Social Shopping
Paul DunayAvaya
Paul Dunay is global managing director of services and social marketing at Avaya and author of “Facebook Marketing for Dummies.” He talks to eMarketer about the future of social commerce as it shapes up on brand Websites, Facebook and Twitter.
FIMN: How do you define social commerce?
Paul Dunay: Social commerce is working with or using your social graph, which is defined as your followers or your friends, and allowing them to help you make buying decisions.
FIMN: What role does Twitter play in social commerce?
Mr. Dunay: Social commerce can be anything from a buying suggestion or recommendation—perhaps a tweet from a Dell outlet saying, “Hey, we have a special on this”—to something like Facebook Connect.
Facebook Connect would allow you to go to a Website like Dell.com and authenticate yourself using your Facebook profile, allow your identity to be known and access your friends so you could spark up a chat. So I could say, “Hey, Jeff, I’m looking at this new fancy laptop or this netbook. I heard you bought something. Would you recommend this to me?”
“You could almost take your friends shopping with you.”
So you could almost take your friends shopping with you. That is the potential with this example.
We’re in a period now where we’re all starting to get comfortable with Twitter and get comfortable with using Facebook and LinkedIn and a lot of these other tools, and now we’re about to expand.
In the next 12 to 24 months, you’re going to see things that you’ve never seen before and uses of the Facebook platform that you’ve never seen before.
I call these new social commerce events life-changers. No. 1 is the combination of search and your social graph—social search.
FIMN: What is another life-changer?
Mr. Dunay: Another potential life-changer is what I like to call “Amazon going social.” When I look at my book on Amazon, I see it says, “Customers who bought this also bought...” It’s not exactly personal, because I could be at my wife’s computer seeing books she bought. Now, how personal is that?
“Amazon could easily turn on a Facebook Connect where they would allow you to import content from your social graph.”
But Amazon could easily turn on a Facebook Connect where they would allow you to import content from your social graph to say, “Your friends who also bought this bought some other item.” And that would carry a lot more weight with me.
The full version of this interview is available here, to Free internet marketing newsletter Total Access subscribers only. Every day they have access to new interviews with digital marketing leaders and trendsetting entrepreneurs.
Pros and Cons of Online Ad Networks
Ad networks hold wide appeal for both publishers and advertisers. On the content provider side, they offer an easy way to sell a large amount of inventory—even if the revenue per impression is typically less than with direct sales.
On the advertiser side, according to a worldwide study by Econsultancy and the Rubicon Project, the main benefits of using ad networks are increased reach, flexible payment models and lower costs.
Social Network Users Depend on Their Networks
Social Site Users Depend on Their Networks
A trusted resource
Social networking is one of the most important activities—online and offline—among US social network users, based on results of Beresford Research’s “Use of Online Social Networks” white paper.
Among online activities, only e-mail was more popular than social networking. Chatting and even Web browsing ranked lower than social networking sites.
When asked to compare online social networking with several offline activities, social network users only found going out with friends more important. That put social networking ahead of real-life activities such as playing games, reading, watching TV and playing sports.
Beresford reported that posting photos was the top social networking activity, with 81% of respondents taking part, followed by responding to the posts of others and posting their own thoughts or activities. One-quarter linked to a company, product or service on a social network, and, notably, 38% reported clicking
A trusted resource
Social networking is one of the most important activities—online and offline—among US social network users, based on results of Beresford Research’s “Use of Online Social Networks” white paper.
Among online activities, only e-mail was more popular than social networking. Chatting and even Web browsing ranked lower than social networking sites.
When asked to compare online social networking with several offline activities, social network users only found going out with friends more important. That put social networking ahead of real-life activities such as playing games, reading, watching TV and playing sports.
Beresford reported that posting photos was the top social networking activity, with 81% of respondents taking part, followed by responding to the posts of others and posting their own thoughts or activities. One-quarter linked to a company, product or service on a social network, and, notably, 38% reported clicking
Wednesday, September 30, 2009
Online’s Slice of Ad Online Spending Grows Worldwide
Web ad growth to reach double figures in 2010
Online Ad spending GroupM forecasts put the online spending about 17% of total ad spending in 2010, compared to 15.4% this year and 13,9% in 2008.
"Interaction 2009" report predicts 4% growth in U.S. online ad spending in 2009, to $ 22.77 billion. Growth will come at 7% next year. Worldwide, online spending is projected to increase 9% in 2009, returning to double-digit growth in 2010.
The growth of online spending worldwide to $ 58.17 billion this year will mean online is 13,2% of the total advertising budget. GroupM predicts that the proportion will increase to 14,6% in 2010.
According to the report, the increase in the cost of search and mobile, along with a reduction in traditional media, fed by success on the Internet. GroupM found online spending has surpassed all other media channels in an economic downturn. Video, which the research firm said was the subsequent social media as "new digital Darling", is also the driving force of online spending in the United States.
"Search is a critical component of paid media, but the turning point was reached," said Rob Norman, CEO GroupM interaction. "For several years the focus was almost entirely on the rapid growth of Google and the effects of market-based auction for the advertising industry. But now the shift is now to return the world" intention "marketing" of paid search, to allocate investment and the return of more fully in several disciplines. "
Mr. Norman said the combination of paid and organic search, as well as mobile and social marketing media, will "fulfill the promise of the original search engine."
Watch the latest trends in our blog about online spending.
Online Ad spending GroupM forecasts put the online spending about 17% of total ad spending in 2010, compared to 15.4% this year and 13,9% in 2008.
"Interaction 2009" report predicts 4% growth in U.S. online ad spending in 2009, to $ 22.77 billion. Growth will come at 7% next year. Worldwide, online spending is projected to increase 9% in 2009, returning to double-digit growth in 2010.
The growth of online spending worldwide to $ 58.17 billion this year will mean online is 13,2% of the total advertising budget. GroupM predicts that the proportion will increase to 14,6% in 2010.
According to the report, the increase in the cost of search and mobile, along with a reduction in traditional media, fed by success on the Internet. GroupM found online spending has surpassed all other media channels in an economic downturn. Video, which the research firm said was the subsequent social media as "new digital Darling", is also the driving force of online spending in the United States.
"Search is a critical component of paid media, but the turning point was reached," said Rob Norman, CEO GroupM interaction. "For several years the focus was almost entirely on the rapid growth of Google and the effects of market-based auction for the advertising industry. But now the shift is now to return the world" intention "marketing" of paid search, to allocate investment and the return of more fully in several disciplines. "
Mr. Norman said the combination of paid and organic search, as well as mobile and social marketing media, will "fulfill the promise of the original search engine."
Watch the latest trends in our blog about online spending.
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