Category Archives: Google Adwords

Study: iPad Accounts for Almost 95 % of Tablet Web Traffic

 

Aiming to get a sense for how powerful the tablet is, online advertising network Chitika looked at what devices it was serving ads to and found that it was almost exclusively Apple tablets.

For every 100 iPad impressions, Chitika is serving slightly more than one ad to a Samsung Galaxy and Asus Transformer Prime and under one ad to the Motorola Xoom, BlackBerry PlayBook and Kindle Fire. The Nook Tablet share is even lower, though clearly both the Nook and Kindle are marketed less as Web browsing devices and more as media consumption tools.

In total, the iPad accounted for more than 94 percent of ads, Chitika said.

It shows that not only are iPads outselling their rivals, but each one that is sold is also more heavily used, at least when it comes to Web surfing.

“Going forward the competition is going to be hard pressed to find a way to overthrow the seemingly omnipotent Apple,” Chitika said. “Not only do they offer a great product, they have the undying devotion of their enthusiasts.”

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Here are the latest online video advertising numbers

December 29, 2011
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Though advertisers and agencies are often increasing their investments in digital video advertising at the expense of offline/traditional branding/advertising efforts, findings from DIGIDAY and Adap.tv suggest funding also comes at the expense of current display advertising budgets.

According to a November study, advertisers were more likely to fund their online video advertising efforts from offline channels such as print and broadcast TV than their agency counterparts. Advertisers most often planned to shift budget from print (41%), while 29% said they would take dollars from broadcast TV to fund their digital video advertising efforts. Just 24% planned to pull from display.

Agencies said boosts to online video budgets would most come at the expense of display (43%), indicating a general move away from less dynamic ad formats, such as banner ads, in favor of those with greater engagement potential.

Channels Their Clients Plan to Shift Budget from to Fund Online Video Ads According to Agencies and Advertisers in North America, 2010 & 2011 (% of respondents)

In addition, 39% of agencies said they would fund video from broadcast TV budgets. Though findings appear to suggest advertisers and agencies are shifting budgets away from TV toward video ads, more than half (56%) of respondents viewed online video as a direct complement to—and not a replacement for—their TV ad programs. Just 11% looked to online video to replace their TV ads, reported eMarketer.

In the past year, both advertisers and agencies have shifted their primary video advertising objectives from brand awareness to brand engagement, perhaps suggesting marketers are moving away from viewing digital video as a mere extension of TV ads and moving toward embracing online video for its ability to more directly engage viewers in a dynamic way.

By enabling video ads with social sharing and other calls to action, marketers can use digital video as a springboard to additional online engagement on social networks, their website and even mobile apps.

Online Video Ad Objectives According to Advertisers in North America, 2010 & 2011 (% of respondents)

Mobile is a growing area of interest for video advertisers, yet publisher offerings lag brand adoption. For example, 42% of advertisers and agencies have purchased iPhone-compatible video ads, yet only 35% of publishers supported such ads. Differences for Android video ads (31% vs. 28%, respectively) and iPad ads (41% vs. 35%) were similar.

40% of Tablet /Smartphone Owners Use Them While Watching TV Almost 20% searched for product information, coupons or deals while watching TV

American consumers are increasingly connected and our recent survey shows they are increasingly multitasking when it comes to multimedia.

Roughly 40 percent of tablet and smartphone owners in the U.S. used their devices daily while watching TV, while only 14 percent of eReader owners said they watched TV while using their device every day.

And what are smartphone and tablet owners doing while watching TV? Checking email. Email was the top activity for both men and women during television programming and commercial breaks. In addition, women reported engaging in social networking more than men, while men checked sports scores more often.

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Advertisers should take note that while viewers may be splitting attention between two (or three!) screens, 19 percent of smartphone and tablet owners searched for product information and 13 percent searched for coupons or deals while the television was on.

Google to Marketers: Get Better at Mobile search growth rates rivaling those on desktop

Google, which recently shared some big numbers from its mobile advertising business, has some advice for marketers hoping to join in its success: make your mobile presence presentable, now.

“Businesses need to be ready for mobile as soon as they can, particularly this holiday season,” said Surojit Chatterjee, Google’s lead product manager for mobile search ads. “You need to have a mobile site irrespective of whether you think people will actually make purchases from it. How good your site looks on mobile determines how people think about your business.”

Even though mobile advertising is still in early days, he said, mobile search volume is growing at a rapid clip. Over the past two years, Google has seen mobile search queriesgrow fivefold—a growth rate he compared to the early days ofdesktop search.

According to research firm Forrester, while 13 percent of the U.S. population searched with a mobile device in 2010 (90 percent with Google), mobile searchers will account for 28 percent of the U.S. population by 2015.

Early experiences now can have lasting consequences, Chatterjee said. Citing analysis from Gomez, another research firm, he said that 60 percent of users indicated they would be unlikely to return to a mobile site if they had trouble accessing it once and 40 percent said they would actually visit a competitor’s site. Beyond that, 63 percent said they would be less likely to buy from the same company through other channels (online or in the store).

“Users are looking at the mobile site to make conclusions about the business as a whole,” Chatterjee said.

Given the increasing number of smartphone users, he said as the holidays approach it will be ever more likely that consumers will try to reach marketers on the go.

This holiday season, Google expects that 44 percent of total searches for last minute gifts and store locator terms will be from mobile devices.

While Google has a clear lead in search now (on mobile and desktop), some industry watchers have wondered whether the search giant can maintain its top position as more consumers transition to mobile devices.

Its earnings report earlier this month, however, gave Wall Street a reason to have some confidence in CEO Larry Page’s belief that mobile search could be as big for Google (if not bigger) than desktop search.

In a rare move, the company broke out revenue from mobile advertising and said it was on track to bank more than $2.5 billion in that category in the coming year, and grew twofold in the last year.

Chatterjee said its success comes from building specifically for the new medium and catering to user behavior on the platform. For example, leveraging research that users tend to act more quickly after a mobile search, Google recently launched new ad formats that let users download apps from a mobile ad or reach a specific destination with a mobile app they already have on their phone.

A user searching for a pair of boots from her mobile phone, for example, can now go directly from an ad to a shopping app on her phone, so that she can more easily complete a purchase.

Other mobile features capitalize on the interest in local information—according to Google, 40 percent of mobile searches on Google are related to location. Two years ago, the company released a click-to-call feature that lets smartphone users call a business directly from an ad. This month, Google announced that proximity to a business would be a factor in mobile search ads ranking.

“We are building specifically for the medium,” Chatterjee said. “We are really, as an industry, speaking to the mobile user and taking into the account the signals we have on mobile phones, the constraints on mobile phones and the user behavior trends on mobile phones.”

TV, online to remain strong in 2012 slowdown

MagnaGlobal has released its updated 2011 US Media Owners Advertising Revenue Forecast, which remains unchanged at 1.6% growth, including the impact of political and Olympics (P&O) advertising. Magna still expects media suppliers to generate $173.5 billion of ad revenues in 2011. However, due to persistent weakness in the US economy, the 2012 growth forecast has been revised down from 4.8% to 2.9%–including P&O.  A slowdown in real personal consumption expenditures, manufacturing activity, and ongoing problems in the labor and housing markets all contribute to the revised outlook.

Excluding direct marketing components, the revenue growth of core media categories is estimated at 2.9% in 2011 and 4.3% in 2012.

For the Local Mass Media category (local Radio, local TV, local Newspapers and Outdoor media), declines are expected through the second half of 2011 and into 2012. They now expect this segment to decline -1.1% in 2011 and -0.4% in 2012, driven primarily by weakness in Newspapers (-5.5%), while Radio will be flat (-0.4%), and Outdoor should grow 4.2% in 2011 and 4.5% in 2012.

TV will be the fastest growing medium after Online in 2012, with ad revenues increasing 7.1% compared with Online’s 11.6%. Magna believes the 2012 Elections and the Summer Olympics will generate incremental revenue of $3.1 billion for television: $2.5 billion in political advertising (the highest spending ever, mostly on local broadcast television) and $633 million around the London Olympics (up 5.5% compared with Beijing 2008, and primarily fuelling National Broadcast TV revenues).

Under the current expectations of a slow-but-positive economic recovery in 2012, media suppliers’ advertising revenues will continue to recover from the severe recession of 2008-2009. MagnaGlobal expects revenues to reach $178.5 billion in 2012, which is still significantly less than the pre-recession level of 2007 ($206.1 billion).

Direct Media is exhibiting an increasing discrepancy between traditional activities (Directories and Direct Mail) and digital (Internet Yellow Pages, Paid Search, Lead Generation). Traditional direct media remains significant ($26.2 billion in 2011), but it is increasingly challenged by digital alternatives. Digital direct media, on the other hand, continues to outperform. Paid Search growth has accelerated this year to 21.7%, and is expected to maintain double-digit growth in 2012 (13.0%). Recent algorithm improvements have helped accelerate cost-per-click trends and have led brands to rely more heavily on search engine marketing and search engine optimization. So, for 2011, they now expect $31.1 billion in total online ad spend, up 19.5% vs. 2010.

Google revenue soars, G+ network grows to 40 million

Google reported third-quarter earnings that handily beat estimates, and announced that its three-month-old Google+ social network now has 40 million users.

That’s a big increase from the 10 million users Google+ had at the end of Google’s last quarter, when it remained in a “limited” trial phase. The network opened to the public in late September.

In an earnings release late Thursday, Google said it earned $9.72 per share. Analysts polled by Thomson Reuters had forecast earnings of $8.74 per share.

Advertising and profit: Investors are looking to Google’s advertising figures as a barometer of the overall economy, and the numbers were good — though the cost-per-click increase was not as high as it was last quarter.

Profit rose as both the number of clicks on Google’s ads and the amount that advertising partners pay per click increased. Paid clicks rose 28% and cost per click ticked up 5% compared to last year.

Sales for the Mountain View, Calif., company rose 33% over the year to $9.7 billion. Excluding advertising sales that Google shares with partners, known as “traffic acquisition costs,” the company reported revenue of $7.5 billion, which beat analysts’ forecasts of $7.2 billion.

Shares of Google (GOOGFortune 500) rose 6% after hours.

Spending and hiring: Google is continuing to spend at a quick clip. Capital expenditures totaled $680 million in the third quarter, including investments in Google’s massive data centers.

But Google has plenty of cash to back up its shopping spree. As of September 30, the company had $42.6 billion on hand.

Google is also continuing to ramp up its hiring. Full-time staffers totaled 31,353 as of September 30, up 9% from the previous quarter.

Motorola: On Google’s earnings call, analysts asked about Google’s $12.5 billion acquisition of Motorola Mobility (MMI). The deal was announced in August and, once finalized, will score Google some valuable Motorola patents. Intellectual property is turning into a battlefield among tech giants including Apple (AAPLFortune 500) and Microsoft (MSFTFortune 500).

When an analyst asked whether Google will license Motorola software to other companies, Google CEO Larry Page said “it would be premature” to discuss details before the deal is approved.

“We’re very excited about Android, and we see that ecosystem growing,” Page said, adding that the strategy is “getting stronger” — and the Motorola deal is part of that.

Browsers and search: Page also revealed that the Google Chrome browser now has more than 200 million users worldwide.

Susan Wojcicki, Google’s senior vice president of advertising, talked up theFlight Search that Google launched last month. She also said Google data shows that “ads that are socially annotated are more useful for users.”

Google execs did not talk specifically about recent antitrust concerns. The Federal Trade Commission has been investigating the company for evidence of abusive practices, and a federal judge recently rejected Google’s planned settlement deal in its attempt to create a universal online book library.

Page instead offered up a “view of the future” sentiment that echoes some of his past statements: “We are still at the very early stage of what technology can deliver. These tools will look very different in five years.”

Report: Mobile Ad Spend to Hit $1 Billion, dramatic increase in banner, search, rich media, and video ads predicted

EMarketer has released analysis of mobile ad spending that predicts decreased investment in message-based ads and dramatically increased investment in banner, search, rich media, and video ads on the mobile platform.

mobile-ad-spending-share-2011-2015

As the iPhone 4S is released, featuring the Siri personal voice assistant that understands what you mean when you talk, it’s clear that smartphone technology is stepping forward. The increased presence of these high-tech tools, as well as decreasing costs, has pushed smartphone ownership toward becoming the “norm.” eMarketer predicts that smartphone ownership will reach 38 percent in the U.S. by the end of this year.

The increase in smartphone ownership coincides with a significant increase in mobile ad spending, which should reach $1.23 billion for U.S. advertisers by the end of the year, up 66 percent from last year’s $743 million figure. eMarketer predicts that the figure will continue to see escalating growth, reaching $4.4 billion by 2015.

Total investment isn’t the only big change, though. Advertisers are focusing less on message-based ads (ads sent via text message, usually after the mobile user sends a subscription message via short code) and more on visual and search ads. While message-based ads are currently in the lead with 36.1 percent of spend, eMarkter predicts that will have changed by the end of 2012.

eMarketer specifically predicts that rich media and search ads will win 33 percent of spend each, leaving message-based ads at 28.2 percent of spend. This divide will grow further in the coming years, with eMarketer’s 2015 figures showing messaging at just 14.4 percent to search’s 40.2 percent and rich media’s 36.4 percent.

The fastest growing segment, however, is video advertising. While it still holds a very small portion of the mobile ad market (at 4.7 percent currently), eMarketer predicts video “will grow at a compound annual rate of 69 percent between 2010 and 2015,” reaching 9 percent of ad spend (an estimated annual figure of $395.6 million) by the end of 2015.

eMarketer’s figures are based on “mobile advertising estimates from other research firms, company data from major mobile ad networks and vendors, marketers’ mobile marketing strategies, and smartphone and tablet adoption and usage trends.”

Speaking of advertising, online advertising hit a new high in the first half of this year, $14.9 billion, the IAB announced last week – with $7.3 billion of that from search advertising.