Tag Archives: Adgroup

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.

Are Daily Deal Sites a Good Deal for Small Businesses?

A new report from Cambridge, Mass.-based Forrester Research indicates that the majority of consumers who redeem prepaid vouchers already were customers of the brand or business that was offering the deal. For clothing and shoe stores, this number is as high as 80 percent, according to the report.

Meanwhile, more than half of the customers surveyed for the report, called “Myths And Truths About Daily Deals,” say they would have made a purchase regardless of having the coupon voucher.

Another big issue is exactly how many people are paying attention to these deal offers, especially over email. “While Groupon vaunts the size of its ‘subscriber base,’ all evidence points to the medium becoming less important,” says Forrester vice president and senior analyst Sucharita Mulpuru, who co-authored the report. “A significant portion of people who once subscribed to these emails no longer do, and many simply don’t want to because they have no need for more clutter in their inboxes.”

Apple Devices Dominate Mobile Online Shopping

The holiday season came a little early for Apple this year, but it’s not as if the company didn’t already know what it was getting. New statistics released this week from retail analysis firm RichRelevance indicate that iPads and iPhones are the top mobile devices that consumers use to make retail purchases.

By just how much, you ask? According to RichRelevance, 92 percent of all “online non-desktop sales” came from an iOS-friendly device during December. Better still (for retailers), those using their iPhones, iPads, and other iOS devices to shop online spent more, on average, than those shopping via other mobile platforms like Android: $123 for iOS devices versus $101 for Android devices. Even though desktop-based sales crushed mobile-based purchases in volume, the average order value of these purchases only reached $87.

“The numbers across our retailing partners sites demonstrate just how powerful the iOS platform is enabling mobile web shopping and, while still below 5 percent in total conversion, mobile traffic’s doubling in eight months is a trend we only see accelerating,” said David Selinger, RichRelevance CEO, in a statement.

In total, mobile device-based shopping hit around 3 percent of all online sales analyzed by RichRelevance—more than 3.4 billion sales in total, stretched across the months of April to mid-December. Translated out to raw dollars, mobile-based sales jumped from 1.87 percent of all U.S. online retail spending in April to 3.74 percent in December.

As mentioned, this news should come as little surprise to Apple, as the company has already seen snapshots of iOS mobile shopping dominance. Take, for example, Black Friday: According to IBM, the iPhone and iPad ranked first and second for consumer shopping on mobile devices on Black Friday itself (5.4 percent and 4.8 percent, with Android-based devices taking up third at 4.1 percent). That totals just over 10 percent of the mobile shopping market for Apple’s flagship products.

IBM also indicated that the specific Black Friday conversion rates for the iPad—a comparison of online visits versus purchases made—were double those of the mobile device category as a whole (4.6 percent to 2.8 percent.)

Even though Android enjoys a healthy lead in overall global market share for smartphones versus the iPhone—no doubt a result of Android’s ability to exist on multiple devices versus the single iOS smartphone product line—it seems that iOS users continue to carry the day for mobile shopping.

Apple’s Siri Could Destroy Local SEO

It’s worth taking the time to learn more about the iPhone 4S’s digital ambassador Siri , as it could represent the future direction of local search engine optimization.

On the surface, Siri — the voice recognition app that allows iPhone users to control their cell phones verbally — seems like a cool party trick, sending text messages from your spoken instructions, checking the weather and setting up calendar reminders. But does this added functionality really mean the end of traditional local SEO as some experts are predicting?

In some ways, yes. The real impact of Siri isn’t just that she acts like a personal assistant. The potentially huge ramifications for local SEO come from the depth of information Siri is able to access and the range of actions she can perform.

For example, Siri can call you a cab after a night on the town by automatically processing information about local cab companies in response to the query, “Call me a cab.” Automating the search process means you never look up “cab companies in your area” in the search engines, avoiding the traditional search engine results pages and pay-per-click advertisements entirely, therefore limiting their importance and influence.


Little is known about how exactly Siri collects and processes information, although it’s reasonable to assume that the program is drawing on well-cultivated public data sources, including Google Places, Yelp and similar sites. If Siri is eventually able to pull information from third party apps — as many predict she will be — she could effectively eliminate traffic to some traditional websites. As an example, automatically checking people in to Facebook places eliminates the need to visit those places’ websites.

 And when you take into consideration that the iPhone 4S has become the company’s best-selling iPhone in just a few short weeks, due in large part to the innovative Siri technology, localbusiness owners should take note of this trend and invest time in optimizing their sites for mobile discovery.

Here’s what you need to do to make your business website as accessible as possible to Siri and related voice recognition tools:

Optimize your website for mobile. This isn’t new advice, as the rules for mobile SEO — and the idea of local SEO in general — have been around for years. But as some sources estimate that 30 percent of all searches could include a local component by 2015, it’s more important than ever to make local SEO a priority for your business.



In addition to thinking about how consumers access your website while on the go, consider whether or not Siri can access important information about your business as well. Here’s what you need to do:

  • Add a mobile site template. Having users land on a mobile version of your website willmake them much happier, and it isn’t difficult to do, as mobile-ready themes already exist for publishing platforms including WordPress, Joomla and Drupal.
  • Enhance your local SEO. Prominently feature your physical address, local phone number and operating hours on the home page of your site for maximum local SEO benefits.
  • Remove data obstructions. Yes, Flash graphics and Javascript are already “no-no’s” when it comes to mobile optimization, but also consider how easily Siri can access the information on your site. Burying pertinent information in PDFs and sub-pages could put your site at a disadvantage.

Enhance your digital presence. It’s no longer enough to simply set up profiles on Facebook and Twitter and call it a day. Instead, establish a profile on any of the following directories and review sites and encourage customers to rate your business there for maximum exposure.

• Foursquare
• Savings.com
• Retailmenot
• Judy’s Book
• Citysearch
• Superpages
• Yellow Pages

To determine which of these options are the best fit for your business, do a quick search to see which business sites in your geographic area and industry are ranking well in Google and create profiles on whichever of the following sites they’re using.

Implement microdata. If you’re savvy in the ways of SEO or have an IT manager who is you’ll want to consider adding “schema tags” to your website. Schema tags allow your site to incorporate relevant microdata — local business, address, telephone and open hours, for example — that could help Siri and the search engines process important information about your site more quickly.

While Siri on her own doesn’t necessarily spell the end of local SEO it’s worth taking note of the popularity this mobile data management system has gained in a relatively short period of time. As Siri evolves and other operating systems adopt similar technology, the businesses that benefit most will be those that best understand how their customers interact in a mobile environment and optimize their sites to engage them.

 

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.

Shift in future TV habits as content goes cross-platform

 

A new study finds 54% of broadband Internet users watch TV content streamed or on an alternative platform weekly.  Non-traditional viewing now accounts for 10.8 hours a month, or 7% of total viewing time, with 149.4 hours still dedicated to traditional TV.

Horowitz Associates’ Multiplatform Content & Services 2011 says 18-34 year-olds spend substantially more time with TV content across all platforms.  Incidence of non-traditional TV viewing is higher among young adult broadband Internet users, with three-quarters (74%) of 18-34 year-olds doing so weekly— accounting for 10% of their total viewing time.  Broadband users 18-34 who watch on non-traditional platforms also spend more time with traditional TV, reporting an average of 167.7 monthly viewing hours—18+ hours more than average.

On non-traditional platforms, YouTube remains the most popular destination.  Study findings suggest, however, that TV brands developing a strong online and mobile presence can translate their success to new platforms.  ESPN is the most frequently mentioned destination for sports on the PC/laptop and on mobile devices.  CNN (closely followed by YouTube) is the main destination for news, as is HBO/HBO GO for those who view premium TV content.

As business and revenue models for non-traditional platforms evolve, the study suggests an increase in customers’ receptivity to online advertising.  Among broadband Internet users, self-reported incidence of clicking on banner and pop up ads increased by 127% since last year.

Content is content, and whomever owns it is going to get eyeballs and ad support for it, regardless of the way it is distributed. Many of the spots created for traditional TV are the same spots that roll into mobile and online TV programming. The money still gets spent on the traditional network and production company content holders, many of which are current networks that have migrated programming online. The losers in this migration may well be the cable operators and satellite companies from folks cutting the cord. For instance, Time Warner Cable just lost 128,000 video subscribers in its residential services in Q3.

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.”

Online advertising becoming as important as spot TV

According to Q3 2011 research from media buying solutions provider STRATA, clients are becoming just as focused on digital media as they are on spot TV. US ad agencies reported 34% of clients were thinking most about online advertising in Q3, compared with 24% the previous quarter. Meanwhile, the number of clients whose primary focus was on spot TV dropped from 41% to an almost-even 35%.

The online marketing tactics in use by the agencies surveyed did not change much, with online display, search and social media coming out on top, their usage rates stable from quarter to quarter. On social media, similarly, priorities remained the same, with Facebook, YouTube and Twitter the clear leaders, though LinkedIn, in fourth position, gained ground.

The number of agencies purchasing mobile advertising for their clients also stayed relatively stable, at 23%, but the types of ads they were creating began to change. In Q3, display advertising took an even larger lead over SMS. More than half of agencies said they are now creating more mobile display ads for their clients than other mobile formats, compared to just 16% of agencies that are still mostly creating SMS ads.

The mobile devices being targeted by those ads were changing, too. Agencies cut their interest in BlackBerry by half between Q2 and Q3, according to STRATA. Still, Android-targeted efforts lagged behind iOS-focused ones.

eMarketer forecasts display will take 33% of mobile ad dollars in 2012, pushing it ahead of SMS and even with mobile search spending. It also estimates that the iPhone will lose its spot as the No. 1 smartphone in America by the end of this year, when Android’s share will far surpass it.

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.”

Retailers Ramp Up Mobile Sites and Apps

With the holiday shopping season rapidly approaching, more consumers than ever are expected to turn to their phones to research and make purchases this year. At least half of mobile consumers view their device as a holiday shopping resource for product information, coupons and sale information, according to a recent Mojiva survey.

Retailers, likewise, are ramping up mobile operations to capitalize on the growing appetite for m-commerce. A new report indicates that 37% of retailers now have mobile sites — up from 12% last year and 4% in 2009.

More stores are also embracing mobile apps. One in four (26%)  retailers have at least one mobile app, up from 7% in 2010. Nearly a quarter (23%) have an iPhone app, and 10% an Android app. Few are creating apps for other smartphone operating systems such as Windows Phone 7, WebOs and BlackBerry.

A smaller group of retailers (18%) have both a mobile site and an app, and 26% have a mobile site optimized for each of the most popular smartphone platforms. The results are based on an annual audit analyzing Internet Retailer’s Top 500 companies on their rate of mobile adoption.

The top 10 when it comes to m-commerce: Amazon, Armani Exchange, Barnes & Noble, Buy.com, Cabela’s, Gilt Groupe, The Home Depot, Newegg, Walgreens, and Wal-Mart. The ranking is based on various factors including having a mobile site, rendering a home page correctly, offering a checkout/booking capability, and having an app.

Not only have they implemented mobile-optimized sites to support a wide range of devices, but they have taken initiatives a step further with exceptional transactional functionality and well-designed apps that meet customer needs.

The study pointed out that mobile adoption, and specific mobile tactics, can vary widely by industry. The health and beauty, food and drug, and mass merchant categories, for instance, skewed much higher than flowers, gifts, hardware and home improvement in launching iPhone apps — 66% compared to 36%.

Only 20% of companies in the music/books/video vertical have mobile-optimized sites compared to nearly 70% in the office supplies category and more than half among apparel sellers. Less than half of retailers are putting up mobile sites to date — probably because they don’t see a big upside yet to building out a mobile presence.

Forrester study in June estimated that retailers in 2011 can expect just 2% of their online Web sales to be conducted via mobile. While m-commerce will grow 40% each year for the next five years, it will still only reach 7% of sales by 2016.