Posts Tagged ‘advertising’

Report: Local digital ad revenue expected to nearly double by 2015 in U.S.

March 21st, 2011

Photo courtesy DigitalJournal.com

According to a press release issued today, BIA/Kelsey is forecasting a significant bump in local digital ad revenue over the next four years. The research and consulting firm says local advertisers are going to steadily migrate to digital media properties and revenues are expected to climb to $42.5 billion in the U.S. by 2015. That is almost double the $21.7 billion generated last year.

“This growth coincides with anticipated improvement in the U.S. economy and a continued rise in overall local advertising, which the firm expects will reach $153.5 billion in 2015, up from $136.3 billion in 2010, representing a 2.1 percent [compound annual growth rate],” the release states.

Some consider local advertising to be the Holy Grail of digital revenue, but it’s an area that has yet to fully maximize its potential. Small companies who have money to spend often find online advertising complicated or confusing to measure. Many also lack the resources or technical know-how to manage online advertising, so they simply don’t do it.

A growing exception to the rule are daily deal companies like GroupOn that have provided a very simple way to spend and measure return on digital investments. Google is also pushing its Google Places product for small business to get listed online.

BIA/Kelsey predicts digital media — including mobile, Web or other electronic means — will represent 23.6 percent of all local ad spending by 2015.

“As the business climate improves and advertisers step back into the market, they are gravitating to digital options that perhaps were not as mature before the recession began,” Tom Buono, CEO of BIA/Kelsey, said in a press release. “Our analysis indicates that as advertisers move to online, mobile and, particularly, the variants of social media, we are fast approaching a tipping point where digital media will soon become a dominant segment of the local advertising marketplace.”

Among the key drivers for increased digital spending are the growing number of smartphones and tablets; declines in newspaper revenue and the rise of paywalls; and interactive and online sectors are advancing rapidly with new options and formats.

Finally, BIA/Kelsey believes the social part of digital media is increasingly becoming a core channel for revenue. The company says the daily deal space alone will grow to $3.9 billion by 2015 and both Twitter and Facebook will be part of this expanding market.

[Cross-posted to Future of Media]

The Next Big Thing in online advertising: Captcha?

April 16th, 2010

You’ve seen captcha on many websites, even if you don’t know what the word refers to; on sign-up forms for websites you’re often given a box of squiggly text and asked to identify the characters inside. The characters are randomly generated and use to prove you’re a person rather than a bot signing up to the site. Here is an example of what they look like.

Almost everyone who has ever signed up for something on the Internet has seen Captcha. Now, an ad agency has found an interesting business idea: monetizing captcha and allowing advertisers to buy the space.

According to techi.com, A company called AdCopy is currently testing captcha ads, meaning advertisers can buy the captcha space on a website so when someone is signing-up, they are forced to engage with a brand. AdCopy reportedly boasts a self-serve advertising platform where advertisers can create and upload ads. Rather than squiggly characters, this service allows advertisers to ask Web users to answer a question related to the ad, or  read the ad and provide information from within. Techi.com‘s example:


By entering “180 savings,” the user is immediately engaging with the ad and is forced to read it. The advertiser wins because every person must engage with the ad. And the consumer is not overly hassled because it’s simple to do. And as techi.com notes, the consumer may actually benefit from being able to read clean text on ads rather than small or hard-to-read text on some captcha.

Advertisers are always looking for new ways to reach people, and this method seems to be well thought-out because it guarantees 100 percent engagement for anyone who wants to sign-up at the site.

There are some setbacks when it comes to spammers getting around captcha (check out the techi.com report for details), but overall I think it’s a great idea for advertisers and site owners looking for new monetization ideas.

Twitter co-founder says monetization coming within a month

March 25th, 2010

Twitter’s monetization strategy has been a long time coming and while it’s still not known exactly what Twitter has planned, an ad platform is widely expected.

It’s still not known is when Twitter plans to announce its money-making plans, but we may now have an indication.

In an interview with CNBC, Twitter co-founder Biz Stone said “later this month [we’ll be] revealing exactly how we plan to make a sustainable source of income so we can build a business.”

PaidContent notes that Stone likely means next month when Twitter has scheduled its Chirp conference. On the agenda is “monetization.”

Stone doesn’t give CNBC much more info, other than to say, “We’re going to roll out something that we think is appropriate not just for users but also for the ecosystem.” Stone says the roll-out will also “give us time to tweak the model and experiment with things.”

Here’s the interview:

Publicis CEO says newspapers too reliant on ad revenue

March 11th, 2010

At the Abu Dhabi media summit, a two-day conference that finished today in the United Arab Emirates, the head of one of the world’s largest marketing groups made some rather direct remarks about newspapers and their dependency on revenue from advertising.

Maurice Levy, head of Publicis, said newspapers need to stop relying on advertising if they want to survive through the digital age. Speaking to The Guardian, Levy said it’s “not enough to have a big audience on the internet.” Levy said newspapers need to find a balance between free and paid content in order to prosper.

“The future of analogue media will not be supported by advertising alone,” he said. “They will have to have profitable access to the internet. It’s not enough to have a big audience on the internet.”

Levy admits online ad spending is growing, but with newspapers shifting from print to digital audiences, advertising online isn’t enough to cover a publisher’s costs.

“Analogue media has to find a new model…content has value and that’s something for which I have a strong point of view,” Levy told The Guardian. “I think media giving away their content is not a good service to themselves. It’s a shame, a pity. This content has a lot of value and it has to be valued reasonably.”

Levy suggested newspapers look at the Freemium business model, in which some content is free but other content or features are paid for by subscribers.

“It is not and/or but and/and,” he said. “We need to have advertising and paid content. Some part of the content could be open and others available on subscription or pay per view.”

Report: Online ad spending will surpass print in 2010

March 8th, 2010

For the first time ever, advertisers in the U.S. are expected to spend more on digital marketing and online advertising than in print. Research from Outsell Inc. indicates online advertising will make up 33 percent of total ad spending in 2010.

According to Outsell, overall spending on advertising and marketing in the U.S. will increase this year by 1.2 percent to $368 billion. Companies are expected to spend about $119.6 billion in online and digital ads compared to $11.5 billion on print ads in newspapers and magazines, an increase of 9.6 percent.

Print will make up about 30 percent of ad budgets, while online spending will soak up about 33 percent of total budgets.

“Advertisers are directing dollars toward the channels which generate the most qualified leads and most effective branding,” Chuck Richard, Vice President and Lead Analyst at Outsell, said in a news release. “As they emerge from the recession, they need more accountability, and they’re spreading their spending over a widening set of options.”

Among the report’s findings, Outsell says B2B advertisers find cross-media marketing to be most effective and 78 percent combine three or more methods.

Furthermore, more than half (51 percent) of B2B marketers rate Facebook as extremely or somewhat effective, followed by LinkedIn (45 percent), Twitter (35 percent) and MySpace (25 percent).

And despite the growth in online ad spending, print magazine advertising is still expected to grow 1.9 percent to $9.4 billion in the U.S. this year.

Outsell released its findings as part of its report titled “Marketing and Ad Spending Study 2010: Total US and B2B Advertising.” The report looks at spending, share, and growth for five media types, including online, events, print, TV/radio and PR/other.

Research data was compiled from surveying more than 1,000 U.S. advertisers in December 2009.