Posts Tagged 'Online Advertising'

Economy Deals Online Ad Spending a Hit – eMarketer

There seems to be more bad news about the economy every day, and falling ad spending numbers are part of the mix. Although online advertising is still on a positive growth curve, that growth is slowing and will dip into the single digits for the first time in 2009.

US Online Advertising Spending, by Format, 2008-2013 (millions)

Not only is the new projection lower, but recovery is expected to take longer. In 2010, online ad spending growth will return (barely) into the double digits at 10.9%, and in 2013 it will only hit 13.5%.

US Online Advertising Spending Growth, by Format, 2008-2013 (% change)

via Economy Deals Online Ad Spending a Hit – eMarketer

Online Marketers Say Digital Spending to Fall 10%-20% in ’09 – Advertising Age – Digital

New York private equity firm Halyard Capital took an informal survey of attendees to get a sense of where they see the market next year, and most predicted digital-marketing budgets would be down 10% to 20% overall from 2008.

But among the gloom there was a little good news for social networks. Some current logic dictates that social media such as Facebook, MySpace and Bebo will have a tough time in a downturn, as marketers take fewer fliers on media they still consider experimental.

Well, 68% of AdTech’s attendees responding to Halyard’s survey said social networking is in the “strongest position to expand” among alternative marketing channels over the next two years, compared with a quarter who said branded entertainment.

Some 62% cited mobile as the platform the will grow the most in the next two years compared to others, while 15% said ad networks would gain share, which may indicate just how many ad networks there are — and how many attend AdTech.

Only 8% said search marketing would outpace other areas in terms of growth. Wishful thinking, perhaps?

via Online Marketers Say Digital Spending to Fall 10%-20% in ’09 – Advertising Age – Digital

China’s digital ad spend to rocket to $5.2bn | Media | guardian.co.uk

The Chinese love affair with the internet will see digital ad spend increase 40% to $5.2bn (£3.07bn) next year, making the booming Asian online economy roughly the same size as the current UK market, according to a report.

The study by KPMG, to be unveiled today at the MediaGuardian Create in China conference in central London, estimates that the total ad spend on all media in the Chinese market will grow by 22% this year and 19.5% next year.

By the end of next year, the Chinese ad market will be worth $37.85bn, a year-on-year increase of more than $6bn on 2007.

via China’s digital ad spend to rocket to $5.2bn | Media | guardian.co.uk

Paid Search Spending Pops – eMarketer

The near future of online ad spending in the US—or at least the largest portion of it—continues to look good despite turmoil in some other ad media and the economy at large.

More than eight out of 10 marketers who spent at least $50,000 per month on paid search said they planned to maintain or increase their spending during the next 12 months, according to a Marin Software-sponsored study conducted by JupiterResearch.

Presumably, Marin, which sells paid search management applications, commissioned the survey to demonstrate the benefits of search engine marketing (SEM) software, but the data on spending plans lines up with overall search spending trends.

eMarketer estimates that paid search spending will not only rise in 2009, but double between 2009 and 2013, when it will approach $24 billion.

Paid Search Spending Pops – eMarketer

MySpace Joins The Contextual Advertising Fray With myAds

After one year of tests, MySpace just launched myAds, its new online advertising platform. myAds is similar to Google’s AdWords and Facebook Ads, but it has some new features that will make it the darling of the contextual marketing crowd.

For starters, it allows you to target a campaign based on gender, age and geographic location. But that’s what everybody’s already doing, right?

So MySpace takes the thing a bit further in trying to get to a PGA – Precision-Guided Ad.

Its main feature is the ability to hypertarget. And what’s this, you may ask? Well, something like a marketer’s wet dream, that’s what it is.

In short, MySpace takes the information users provide about themselves – what they like and dislike, what they do in their spare time, etc – and uses it to put them in nice little boxes. Then all you have to do is choose the ones you like, and voilá!, your ad will be flying off directly to scores of personal pages.

Say you own a local surf shop in Pismo Beach. You can use myAds to target users in that area (I think it’s a safe bet to assume that not many people would come from Santa Barbara to buy you a board) that say they’re into surf or bodyboard, and show them relevant ads about a boards sale, for instance.

But now let’s say you own a surf school, also in Pismo Beach. You can target your ads not only to people who say they’re into surf (who’d probably be already over the lessons phase) but also to people that are into related sports (like skate, for instance), and that could be willing to give surf a try. And if you find out that a lot of people usually come from Fresno for vacation in Pismo Beach in the Summer, you can start a campaign in the Spring aimed specifically at them. Pretty cool stuff, ahn?

As for the pricing model, myAds also goes along with the prevailing CPC trend. For the uninitiated, CPC translates as Cost-Per-Click, which means that you only pay when viewers actually click on your ad, instead of when they merely see it (which is a tricky thing to measure, since the ad being there is no guarantee at all that it is actually being seen).

CPC has a bottom price of $0.25, and goes up based on competition with other advertisers also targeting the same niche. The more you are willing to pay, the higher your ad will go in the priority ladder. Campaign budgets start at a minimum $25, and can go up to $10,000, with the possibility of defining a budget cap anywhere in-between..

That means that if you pinpoint a limit of $1000 to your campaign, then the ad will be active until that amount is reached. When that happens, it will simply be redrawn. That way you can rest assure that you won’t be driven into bankruptcy by crowds of users that just can’t help clicking in your perfectly targeted ad.

With myAds, the Myspace team takes online contextual advertising a step further. But will it be enough for the platform to gain traction amid the ongoing economic meltdown, which is starting to affect online ad spending?

IAB: Online Ad Spending Slows – Advertising Age – Digital

NEW YORK (AdAge.com) — U.S. online ad revenue was stagnant between the first and second quarters of 2008, indicating a significant mid-year slowdown, according to the latest tally from the Interactive Advertising Bureau.

Second-quarter online ad spending came in at $5.745 billion, a 12.8% increase from the same period last year, but a slight decrease from the $5.765 billion in the first quarter of 2008.

Quarterly online ad revenue has yet to match its last peak, reached in the fourth quarter of 2007, and, if trends hold, several years of double-digit annual online growth are coming to an end.

IAB: Online Ad Spending Slows – Advertising Age – Digital


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