Showing posts with label advertising. Show all posts
Showing posts with label advertising. Show all posts

Thursday, February 11, 2010

Advertising on the up?

Some good economic news for the industry.

Data published by the Advertising Association predicts that UK advertising expenditure will return to growth in the autumn, its first rise in more than two years.

According to New media age,

The positive outlook mirrors the optimism expressed in the last Bellwether report, which found marketing budgets decreased by 7% in the final quarter of 2009 compared with 15% in the previous quarter. It also predicted 2010 marketing budgets would be higher than in 2009.

Tuesday, December 29, 2009

Don't write off print advertising just yet

According to a survey seen by the Times,print advertising is more than twice as effective as television advertising for large retailers.

The survey of 26 large retailers found that

Every £1 spent on print advertisements yields £5 in revenue, compared with £2.15 for television and £3.44 for online advertising,


Print is very good for targeting specific audiences and getting eyeballs on key products,” said Joel Dawson, head of online marketing at Boots. “But the smarter businesses are integrating digital advertising into the planning process.”


Ht-Joanna Geary

Friday, November 27, 2009

America prepares for a social media barrage

Social media will be at the forefront of a barrage of post Thanksgiving retail promotions in the United States.

The FT reports that

Retailers including discounters Target and Walmart, and department store groups Macy’s, Kohl’s and JC Penney have used Facebook pages to publish the “doorbuster” and “early bird” deals traditionally announced in newspaper advertising inserts on Thanksgiving, the day before “Black Friday” – so called because it was once the day on which retailers’ ledgers for the year moved out of the red and into the black.

Tuesday, October 27, 2009

Now the billboard will get a makeover

The lastest medium to have a makeover in this digital is going to be the billboard.

That is at least according to William Eccleshare, the new chief executive of Clear Channel's international outdoor advertising business.

Interviewed in the FT this morning,he tells the paper that

"People have been sticking things on walls for centuries, but there's now a real opportunity to change the business,In 10 years, and probably in five, the outdoor market will feel and look very different from what it does now.


In what way? Well he continues

"If you get the economics right, you can make digital work," citing plasma screens in Finland's largest shopping centre, which can change advertising to suit different groups of shoppers passing through at different times of the day.

Thursday, October 01, 2009

Before we herald the death of TV advertising..........

The much trumpeted statistic that online advertising has now surpassed that of television comes as no real surprise.

The report by Price Waterhouse Coopers for the Internet Advertising Bureau shows that online advertising rose to 23.5 per cent of the total market in the first half of this year, while TV was on 21.9 per cent.

But before we all start ringing the death knell of the tradition forms,it may be a good idea to step back.

As the FT points out in this comment piece

Online marketing is still at the utilitarian end of the ad spectrum. It is better at helping consumers satisfy needs they have already identified than persuading them to buy products that they had not previously thought – perhaps rightly – that they needed. If internet advertising is to capture the 30 per cent market share that its most fervent supporters believe could be in its grasp, then it needs to capture more high-profile campaigns and attract a greater share of consumer brand marketing.


There are also two rather looming issues as the piece continues

1. continuing pressure on UK TV advertising sharpens questions about how to pay for public service broadcasting beyond the BBC.

2.Privacy-Being able to tailor web adverts to users’ preferences, based on individual browsing patterns, is part of the internet’s appeal for advertisers. Some online users will readily trade privacy for the convenience of avoiding irrelevant advertising. But others may feel uncomfortable that this information is collected and sold.

Raymond Snoddy also has some issues.(via Michael Taylor).

In this piece at MediaTel he argues that although it is

a symbolic moment. Television has been beaten into second place after nearly fifty years by a medium that could scarcely be glimpsed on the horizon a decade ago
he points out that

online search and comparison sites scramble over each other to advertise on network television. Presumably they must all believe in the effectiveness of television advertising.

Monday, September 28, 2009

The inverse advertising scenario

Fascinating survey by Tivo which finds that the most popular television programs had the least-watched commercials.

The New York Times reports that

The company said that nearly all of the television shows that won 2009 Emmys showed higher levels of ad-skipping than the averages for their respective genres


Todd Juenger, TiVo’s vice president for audience research and measurement, suggested that people watching hit shows were likelier to skip ads because they were more wrapped up in the show than other viewer


Presumably then the worst programmes have th most watched?

Friday, August 28, 2009

TV advertising no longer sustainble

The head of one of Europe's biggest TV stations believes that advertising will no longer sustain television's revenues.

Gerhard Zeiler, chief executive of RTL will tell delegates at Edinburgh’s International Television Festival that

Free broadcasters need to look into paid alternatives and consolidate. reports the FT this morning and adds that

Free television remains important for advertisers; millions of viewers still tune in to watch hit shows. But there is a need to explore alternatives. Paid channels focused on sport or film, and micropayments for video on demand, are two possibilities.

Friday, August 21, 2009

Print revenue worth more than 15 times that of online?

Some interesting stats from across the Atlantic

Print newspapers took in $34.7 billion in advertising revenue last year and had 49 million subscribers. That works out to $709 per subscriber


whereas

Newspapers online had $3.1 billion in ad revenue last year and averaged 67.3 million unique visitors per month. That’s $46 per reader.


That means a print subscriber is worth more than 15 times the revenue an online reader is.

Perhaps though not quite as bad-

Not all online newspaper readers are made equal. The top, say 10 percent of readers, who visit the home page twice a day are worth exponentially more than the bottom 10 percent, junk traffic that bounces in off Digg or some blog and which sees a page or two and spends maybe 10 seconds on the site. I wish I could quantify how much the top 10 percent are worth, but I’ve never been able to find data on that. Still, remove the junk traffic, and the online revenue per reader would rise.

Tuesday, August 18, 2009

Readers Digest files for chapter 11

A staple of the publishing business indicated the severity of the advertising recession lats night as Reader's Digest announced plans for voluntary bankruptcy in New York.

The FT reports that

Equity investors led by Ripplewood Holdings, who announced the $2.4bn acquisition in November 2006, will lose their entire $600m investment.
adding that

advertising revenue from the flagship magazine fell 18.4 per cent last year, and is down another 7.2 per cent in the first six months of this year, according to the Publishers Information Bureau.


The magazine says that the move will not be noticed by its readers,does not expect to lay off any employees or close any of its publications.

Monday, August 10, 2009

Advertisers developing personalised consumer relationships on Facebook

Facebook may be dying in some quarters but not it seems in the minds of US advertisers.

More than 80 per cent of the largest US advertisers are using Facebook to promote themselves, suggesting that corporate America has embraced the social networking site as a mainstream promotional platform. reports the FT this morning adding that

Unlike previous big brand promotion on the web, the ads on Facebook are not splashy displays and banners but more discreet, blending into the overall design of the site.
They typically invite users to engage with companies, directing them to pages and applications where they can become fans of the company and receive regular updates.

Friday, July 31, 2009

Marketers move to using previously offline information

Interesting article in the New York Times looking at the way that marketing and data companies have started connecting previously offline information to customer's browsers.

The information which includes income,purchasing habits and credit scores will

result in a sea change in the way consumers encounter the Web. Not only will people see customized advertising, they will see different versions of Web sites from other consumers and even receive different discount offers while shopping — all based on information from their offline history.

Wednesday, July 15, 2009

Increase in local ads on social networking sites

More evidence on the rise of social media and social networking sites comes from Borrell Associates.

They report that nearly 20 per cent of advertising on social networking sites comes from local business in the United States

Our assumption going into this research was that commercials on social networks were almost purely national. We’re estimating that local advertisers will account for about $641 million of nearly $3.3 billion this year trying to reach consumers via these sites.


The figures for the UK would be particularly interesting

Ht-Nieman Lab

Tuesday, July 14, 2009

Signs of optimism for online advertising but SE goes into decline

It seems that the advertising slump has caught up with the search engine phenonoma according to this report in the FT this morning

Cuts in spending on search-engine advertising are accelerating even as the rate of decline in overall marketing outlay slows, according to a report by the Institute of Practitioners in Advertising
says the report adding that at least up to now

Search advertising has hitherto held up better than any other part of the marketing mix.


But it seems no longer as

marketing professionals are cutting search spending by about 5 per cent, the IPA says, making this the only category to see an increased rate of decline.

Saturday, July 04, 2009

Slow online growth makes new bedfellows

The slow growth of online advertising is pushing internet companies and ad agencies to work together.

That is according to an article in the New York Times.

With consumers spending more and more time online, analysts say Internet companies and ad agencies have no choice but to work together to develop ways to make money from digital media.
says the paper.

Tuesday, June 16, 2009

Advertising downturn will accelerate the move to digital

A rather downbeat report on advertising from Pcw is reported in the FT this morning.

the UK’s television advertising market will resume growth after 2010 but may not surpass 2008 levels until after 2013.


But the report adds the current slump may well accelerate the move to the digital advertising platform but

that will not be enough to offset the decline in traditional businesses.
although

the move to digital advertising, with greater scope for targeting specific groups, allowed advertisers to be more efficient in their spending.

Friday, June 05, 2009

In that kind of environment, it's pretty ludicrous to think that newspapers could survive.

As Paul Starr has explained, newspapers only flourished during the past few centuries because they functioned as intermediaries between readers and advertisers — fundamentally, they survived because they were institutions that stood between people.


MotherJones' Kevin Drum discusses Craigslist by quoting from Barron YoungSmith who continues

Now, along comes Craigslist, which sees cutting these sorts of intermediaries out of the equation as a form of public service. It considers that mission so important that it is willing to forego huge potential profits and compete against classified pages everywhere while charging virtually nothing for what it offers. In that kind of environment, it's pretty ludicrous to think that newspapers could survive.

Tuesday, June 02, 2009

Online advertising more prolific that we think

Amid all the discussion about whether online advertising will fill the gap produced by the decline in the print version,Gordon Borrell in this post thinks that there is a lot more around.

The amount advertisers are spending is truly stunning, and much larger than most people imagine. Those who understand the true breadth of opportunity are more likely (in my humble opinion) to get a larger share than those who underestimate it.
and the reason why?

“With the Internet, however, you can’t fathom the universe of companies and individuals selling things like email advertising or search advertising or banners. In a lot of cases, they aren’t even companies, but individuals who don’t have business licenses and thus cannot be tracked at all for their “ad revenue” receipts.


Ht-Nieman Lab

Monday, June 01, 2009

Advertising dives in America


A good post from Alan Mutter who reflects on the worst quarter for American newspapers in recorded history

Alan writes that

advertising sales fell by an unprecedented 28.3% in the first three months of 2009, plunging sales by more than $2.6 billion from the prior year.
adding that

print ad sales fell by a historic 29.7% to $5.9 billion in the first period of this year and that online sales fell a record 13.4% to $696.3 million.


The worst falls were in classifieds for employment real estate and cars which saw fall in excess of 40 per cent

Thursday, April 30, 2009

Press Complaints v Ad Complaints

Over at Martin Moore's blog there is a good analysis of why it appears that advertisers get more complaints than the press get at 463 per cent more to be exact.

Matthew Cain who is leading the work of the independent press review group seems baffled as to the reasons why.

1.the differential has always been there

2.It’s not because there are more adverts

3.It’s not because the ASA spends more on advertising

4.It’s not because there are more grounds for complaint for an advert

5.It's not that we get more upset about advertising

6.Our tolerance threshold of advertising does not appear to be significantly lower than our tolerance of the press.

Monday, April 20, 2009

“an audience that has assets, not allowances"

For decades, older consumers were largely shunned by marketers because they were deemed less wealthy, less likely to try new products and less willing to change brands. Campaigns directed at them were described dismissively as made for the “Geritol generation.” As much as older consumers were to be shunned, young consumers — ages 18 to 34, or 18 to 49 — were desired for what were deemed their free-spending ways, eagerness to sample new products and brand-switching proclivities. The idea that they were starting in life with a proverbial blank slate of marketing wants and needs was catnip to product peddlers.


The New York Times reckons that the tide is changing and the reasons are two fold.

Firstly the recession as this age group simply has more spendng power and secondly simple demographics that this sector has the ascendancy in numbers.

This will have consequencies for media advertising.The so called boomers are “an audience that has assets, not allowances" according to Henry Schleiff, president and chief executive at Hallmark Channels,