An interesting article in today's Wall Street Journal.
'While many media businesses are stalling, a small group of online publishers appears to be bucking the trend.
Several start-up Web sites such as SB Nation, Seeking Alpha Ltd. and HealthCentral Network Inc., which create and aggregate content about topics like sports, business and health, are recording sharp gains in visitors and revenue. They are outpacing other sites on similar topics through business models that allow them to create niche content. Many also are landing distribution partnerships with big media brands eager for content during the recession'.
Interesting. Very interesting........
Showing posts with label Advertising. Show all posts
Showing posts with label Advertising. Show all posts
Tuesday, 3 March 2009
Tuesday, 20 January 2009
Behavoural Targeting
An interesting article in MediaWeek. I am reproducing the first four paragraphs here.
'It’s doubtful that between managing two wars and implementing a massive economic stimulus package, behavioral targeting ranks high on President-elect Obama’s first 100days’ to-do list.
Yet, with a new administration set to take charge this week, backed by a larger Democratic congressional majority, the online ad industry is swiftly moving to present itself to Washington as a business that can police itself.
Thus, when a coalition of the marketing world’s largest trade groups formed last week to announce plans to develop a set of self-regulatory guidelines for behavioral targeting ads, the timing seemed deliberate, and the message clear: you don’t need to handle this, we’re on top of it.
The American Association of Advertising Agencies, the Association of National Advertisers, the Direct Marketing Association, the Interactive Advertising Bureau and the Council of Better Business Bureaus, pledged to tackle privacy concerns over just how consumers’ Web searching and surfing data is used by marketers.'
This is highly relevant at this time. At Pingar, we are looking at the whole issue of profile mining, demographics and ad placement. A key over-rider for Pingar is to develop strategies that ultimately protect our individual user's personal identifiable data and then map these strategies against both current and future regulation.
It is also relevant since I renewed my membership of the IAB NZ last week and it is good to see that they are actively involved in this debate. It WILL influence the long term models on which future online ad related strategies are based.
For Pingar, through 2009, this will be a major part of our ongoing research work.
'It’s doubtful that between managing two wars and implementing a massive economic stimulus package, behavioral targeting ranks high on President-elect Obama’s first 100days’ to-do list.
Yet, with a new administration set to take charge this week, backed by a larger Democratic congressional majority, the online ad industry is swiftly moving to present itself to Washington as a business that can police itself.
Thus, when a coalition of the marketing world’s largest trade groups formed last week to announce plans to develop a set of self-regulatory guidelines for behavioral targeting ads, the timing seemed deliberate, and the message clear: you don’t need to handle this, we’re on top of it.
The American Association of Advertising Agencies, the Association of National Advertisers, the Direct Marketing Association, the Interactive Advertising Bureau and the Council of Better Business Bureaus, pledged to tackle privacy concerns over just how consumers’ Web searching and surfing data is used by marketers.'
This is highly relevant at this time. At Pingar, we are looking at the whole issue of profile mining, demographics and ad placement. A key over-rider for Pingar is to develop strategies that ultimately protect our individual user's personal identifiable data and then map these strategies against both current and future regulation.
It is also relevant since I renewed my membership of the IAB NZ last week and it is good to see that they are actively involved in this debate. It WILL influence the long term models on which future online ad related strategies are based.
For Pingar, through 2009, this will be a major part of our ongoing research work.
Saturday, 22 November 2008
US Online Advertising Booms
Following on from my recent posting on NZ Online Advertising sales, it is interesting to compare our local performance with that of the United States.
Once again, the source is PriceWaterhouse Coopers and the IAB. Internet advertising revenues in the US totaled $11.5 billion for the first six months of 2008, with Q1 accounting for approximately $5.8 billion and Q2 totaling approximately $5.7 billion. Internet advertising revenues for the first six months of 2008 increased 15.2 percent from the same period in 2007.
Search continues to lead the sector pack, followed by Display Banners and Classifieds. Search revenue accounted for 44 percent of 2008 second-quarter revenues, up from the 40 percent reported in 2007. Display Banner advertising, the second largest format, accounted for 21 percent, followed by Classifieds (14 percent), Lead Generation (7 percent) and Rich Media (7 percent) of 2008 second-quarter revenues.
It will of course be interesting to check out if this growth has been maintained in the second half of 2008. Against the backdrop of the dire financial market turbulence in the States that will be the real test. My own guess remains that billings will have held up remarkably well. Whilst online advertising in certain sectors such as banking and auto will almost certainly have declined, this will be more than recompensed by the more general drift of ad spend from the offline world to the online one. The severe market turbulence currently in play might just have accelerated that drift.
Once again, the source is PriceWaterhouse Coopers and the IAB. Internet advertising revenues in the US totaled $11.5 billion for the first six months of 2008, with Q1 accounting for approximately $5.8 billion and Q2 totaling approximately $5.7 billion. Internet advertising revenues for the first six months of 2008 increased 15.2 percent from the same period in 2007.
Search continues to lead the sector pack, followed by Display Banners and Classifieds. Search revenue accounted for 44 percent of 2008 second-quarter revenues, up from the 40 percent reported in 2007. Display Banner advertising, the second largest format, accounted for 21 percent, followed by Classifieds (14 percent), Lead Generation (7 percent) and Rich Media (7 percent) of 2008 second-quarter revenues.
It will of course be interesting to check out if this growth has been maintained in the second half of 2008. Against the backdrop of the dire financial market turbulence in the States that will be the real test. My own guess remains that billings will have held up remarkably well. Whilst online advertising in certain sectors such as banking and auto will almost certainly have declined, this will be more than recompensed by the more general drift of ad spend from the offline world to the online one. The severe market turbulence currently in play might just have accelerated that drift.
Thursday, 20 November 2008
NZ Online Advertising Booms
According to the NZ Interactive Advertising Bureau website, all categories of online advertising continued strong year-on-year growth according to the quarterly IAB Insight report – covering Q3, 2008 – which was released by the Interactive Advertising Bureau of New Zealand and PricewaterhouseCoopers yesterday.
Despite a tightening economy, total online advertising was up 22.3% on the same quarter last year, and all categories showed double-digit growth on Q3 last year.
"Online advertising spend has experienced strong growth in 2008, particularly when considered in the context of recent economic conditions. This is indicative of the appeal of interactive advertising, where advertisers have the ability to quickly gauge the market response and act accordingly," says Chris Perree, Partner at PricewaterhouseCoopers.
Mark Evans, CEO of IAB NZ says trends in NZ are mirroring those seen overseas. "Year-on-year growth continues at pace in New Zealand. This quarter things have slowed a little from the type of hockey-stick growth curves we’ve been seeing as people stand back and take stock of what’s happening globally, but we’re still expecting strong growth to continue into next year and beyond."
All the feedback I am getting at Pingar reflects the same story. This sector is growing and it is growing strongly. It is often said that economic downturns create opportunities. My own take is that if online advertising can continue current growth trends when times are tough, just imagine what will happen when economies finally free up again.
At a time of growing global pessimism, that is a comforting thought for those close to me.
Despite a tightening economy, total online advertising was up 22.3% on the same quarter last year, and all categories showed double-digit growth on Q3 last year.
"Online advertising spend has experienced strong growth in 2008, particularly when considered in the context of recent economic conditions. This is indicative of the appeal of interactive advertising, where advertisers have the ability to quickly gauge the market response and act accordingly," says Chris Perree, Partner at PricewaterhouseCoopers.
Mark Evans, CEO of IAB NZ says trends in NZ are mirroring those seen overseas. "Year-on-year growth continues at pace in New Zealand. This quarter things have slowed a little from the type of hockey-stick growth curves we’ve been seeing as people stand back and take stock of what’s happening globally, but we’re still expecting strong growth to continue into next year and beyond."
All the feedback I am getting at Pingar reflects the same story. This sector is growing and it is growing strongly. It is often said that economic downturns create opportunities. My own take is that if online advertising can continue current growth trends when times are tough, just imagine what will happen when economies finally free up again.
At a time of growing global pessimism, that is a comforting thought for those close to me.
Friday, 26 September 2008
What Recession?
Adweek is the latest source to confirm what is becoming increasingly obvious. Whilst the broader economy might be feeling the impact of the global credit crunch fall-out, digital marketing remains poised for growth, according to the latest data from eMarketer.
Advertisers will spend about $25 billion online this year in the U.S., eMarketer projects, which is a growth rate of 17.4 percent over last year. In 2009, growth will drop somewhat, but will still yield an impressive 14.5 percent for total ad spending of $28.5 billion.
By 2011, an anticipated boom in online video advertising, combined with a recovered economy, will mean spending growth greater than 20 percent for the first time since 2007. Marketers are expected to devote more than $40 billion to online advertising that year.
Last night, the fundamental shift in advertising spend was apparent when our weekly free copy of the BOP Property Press dropped onto the carport floor. A year ago, it contained about 84 pages. Last night, it was nearer 50. The real estate market might be quiet, but that is only part of the story. The reality is that property advertising has shifted online big time.
For now, the online advertising space seems to be as recession proof as any.
Advertisers will spend about $25 billion online this year in the U.S., eMarketer projects, which is a growth rate of 17.4 percent over last year. In 2009, growth will drop somewhat, but will still yield an impressive 14.5 percent for total ad spending of $28.5 billion.
By 2011, an anticipated boom in online video advertising, combined with a recovered economy, will mean spending growth greater than 20 percent for the first time since 2007. Marketers are expected to devote more than $40 billion to online advertising that year.
Last night, the fundamental shift in advertising spend was apparent when our weekly free copy of the BOP Property Press dropped onto the carport floor. A year ago, it contained about 84 pages. Last night, it was nearer 50. The real estate market might be quiet, but that is only part of the story. The reality is that property advertising has shifted online big time.
For now, the online advertising space seems to be as recession proof as any.
Saturday, 16 August 2008
UK Online Ad Market Update
Whilst I remain zipped on Pingar, I continue to look at the online advertising marketplace. I found an interesting article on ClickZ this morning.
According to the article, online ad spend in the U.K. overtook advertising on mainstream commercial TV last year, according to Britain's Office of Communications. Paid search grabbed over half of online ad dollars spent in the U.K. in 2007.
The watchdog's Annual Communications Market report states that the U.K.'s online advertising market grew by 40 percent in 2007, and by 70 percent in each of the past five years, reaching a total of $5.2 billion (£2.8 billion) last year. Web ad spending represented 19 percent of total media revenues, according to the report from the U.K. government body which regulates the communications and media industries.
By contrast, TV ad spend remained unchanged at $6.5 billion (£3.5 billion), with mainstream commercial channels -- ITV1, Channel 4, S4C and Five, accounting for $4.5 billion (£2.4 billion) the report says.
Paid search accounted for the lion's share of online revenue, or nearly $3 billion (£1.6 billion) of the total $5.2 billion (£2.8 billion), with display and classified advertising making up the remainder.
According to Alex Marks, head of marketing for Microsoft Advertising U.K., the shift mirrors consumers' changing consumption habits. Consumers are becoming more easily distracted, and non-linear in the way they consume media. They are more difficult to entertain, have lower attention spans and practice ad avoidance techniques.
It's compelling stuff.
According to the article, online ad spend in the U.K. overtook advertising on mainstream commercial TV last year, according to Britain's Office of Communications. Paid search grabbed over half of online ad dollars spent in the U.K. in 2007.
The watchdog's Annual Communications Market report states that the U.K.'s online advertising market grew by 40 percent in 2007, and by 70 percent in each of the past five years, reaching a total of $5.2 billion (£2.8 billion) last year. Web ad spending represented 19 percent of total media revenues, according to the report from the U.K. government body which regulates the communications and media industries.
By contrast, TV ad spend remained unchanged at $6.5 billion (£3.5 billion), with mainstream commercial channels -- ITV1, Channel 4, S4C and Five, accounting for $4.5 billion (£2.4 billion) the report says.
Paid search accounted for the lion's share of online revenue, or nearly $3 billion (£1.6 billion) of the total $5.2 billion (£2.8 billion), with display and classified advertising making up the remainder.
According to Alex Marks, head of marketing for Microsoft Advertising U.K., the shift mirrors consumers' changing consumption habits. Consumers are becoming more easily distracted, and non-linear in the way they consume media. They are more difficult to entertain, have lower attention spans and practice ad avoidance techniques.
It's compelling stuff.
Wednesday, 7 May 2008
Ad Supported Models
Almost two thirds of media executives (63%) polled by Accenture say that the biggest driver of revenue growth over the next five years will be putting content on multiple screens, with short-form content picked as the biggest growth area.
That is according to the consulting firm's annual survey of more than 100 media executives.
In good news for ad-supported networks, about the same percentage (62%) say that advertising will remain the top business model for the media, with only 25% saying it would be subscription services and far fewer--only 11%--saying it will be pay-per-play. Over half (52%) said that digital ads will replace traditional advertising within five years.
The results of this survey pretty much support my thinking. Pingar's ambition is to provide high quality, premium content to users at no cost. This model is based entirely on an ad-supported strategy.
Users want it. And so it appears do advertisers.
Friday, 30 November 2007
Yahoo! Lock into PDF
I was interested to see that Yahoo! has announced plans to integrate online ads into PDF documents.
Yahoo! has reached a deal to start running advertisements in Adobe's PDF document-reading format.
The service will allow publishers to make money by including adverts linked to the content of a PDF document in a panel at the side of the page. The advertisements will not appear if the PDF document is printed.
It is the first time that Adobe has allowed dynamic adverts into its PDF (Portable Document Format) files. Dynamic adverts can be changed for particular audiences or rotated to make sure that a particular user never sees the same advertisement twice. The evolving online ad model rolls on.
Tuesday, 25 September 2007
Calling Ad:Tech London
Ad:Tech London, the premier interactive marketing event in the UK is being held today and tomorrow. John Beer of Pingar is there.
Search Engine Marketing, Email Marketing, Affiliation, Syndication and Search Engine are re-shaping advertising investments and are quickly becoming the advertising industry standard for reaching, targeting, engaging and selling to businesses and consumers alike.
Businesses are always looking for a way to save money, reduce the sale cycle, and increase Return On Marketing Investments. With the rising cost of print and broadcast marketing, marketers are quickly turning to Search Engine Marketing, Email Marketing, Affiliation, Blogging or Real Simple Syndication as they all appealing to Internet users because it effectively puts them in control.
We know. That is what we do.
Ad:Tech London is designed to bring companies operating in the "digital advertising and marketing space" together with UK decision-makers who understand the value of investing in interactive media.
I wish I was there.
Monday, 27 August 2007
Arresting TV Advertising Decline
Given my interest in different advertising mediums, a short take on declining TV advertising revenues in New Zealand.
I rarely watch movies or drama on NZ television. This has nothing to do with the quality of the programme. It has everything to do with the quantity of advertising. The last 30 minutes of each programme is worst. The constant breaks totally destroy any continuity or climax build-up.
It makes me appreciate the TV license I used to pay in the UK. I guess I cannot be the only ex-Pom now living in NZ who reflects back on the ad-free BBC programming schedule with regret. Thank god for video and DVDs.
I rarely watch movies or drama on NZ television. This has nothing to do with the quality of the programme. It has everything to do with the quantity of advertising. The last 30 minutes of each programme is worst. The constant breaks totally destroy any continuity or climax build-up.
It makes me appreciate the TV license I used to pay in the UK. I guess I cannot be the only ex-Pom now living in NZ who reflects back on the ad-free BBC programming schedule with regret. Thank god for video and DVDs.
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