Search Advertising Slowed in 2008
Though Internet advertising has been vulnerable to the overall economic decline, search advertising has become more desirable for marketers. Still, U.S. search advertising saw its annual spending increase slow down a bit from its 2007 growth.
During the first half of 2008, $5.06 billion was spent on paid search, according to a report released by Interactive Advertising Bureau/PricewaterhouseCoopers. This reflected a 23.6 percent increase compared to the first half of 2007 when paid search spending was $4.10 billion.
However, search advertising saw its annual spending increase $1.89 billion in 2008, reflecting a slower growth compared to the $2.01 billion in additional year-over-year spending in 2007, according to eMarketer.
Search advertising annual spending increases are expected to remain relatively sluggish until 2012.
Video advertising saw a 245 percent increase in revenues during the first half of 2008, thanks mostly to a low base figure from the first half of 2007.
Sponsorships and classifieds both saw declines during the first half of 2008 compared to the same period in 2007. Classifieds lost 5.2 percent, while sponsorships lost 23.3 percent in revenues, according to the IAB/PwC study.
Search advertising’s share of total online ad spending increase to 45.3 percent in 2008 from 41.5 percent in 2007.
eMarketer attributes this to search advertising’s performance-based approach, which allows marketers to keep this area accountable and controlled during tough economic times.
Source:
http://www.emarketer.com/Article.aspx?id=1006853
Thursday, January 15, 2009
Wednesday, January 14, 2009
Gasta News: China online growth explosion
China's online population, already the world's largest, has expanded to 298 million.
This marks a 41.9% increase on the previous year and is still growing fast, said the government-linked China Internet Network Information Centre.
The study also showed huge increases in the number of people in China accessing the internet through mobile phones.
The report by Cinic also noted that internet use in the countryside was increasing faster than in the cities.
At the end of 2008, the number of net users in China, which has a population of 1.3 billion, was almost the same as the entire population of the United States.
Users in the countryside surged by 60.8% year-on-year to 84.6 million, compared with much more modest growth of 35.6% in the urban areas, the report said.
The Cinic report said 117.6 million people accessed the internet using their mobile phones last year, up 133% from 2007.
Students are the main strength of mobile internet users, the study said: 43.5% of them use their mobile phones to read online news, download music, check email and perform a variety of other tasks.
3G boom
China, with 633.8 million mobile phone users, last week issued long-awaited licences for third-generation (3G) mobile phones to China Mobile, China Telecom and China Unicom.
CHINA'S INTERNET USE
Total users: 298 million
Year-on-year increase: 41.9%
Mobile net users: 117.6 million
Internet penetration: 22.6%
"With the coming of the 3G era, wireless internet will have exponential growth," Cinic said in a statement accompanying the release of its report.
3G phones enable faster data transmission and services such as watching TV, playing online games, wide-area wireless calls and web surfing.
By 2011, the three operators expect to start 3G services all over China, a move which analysts predict will spur further massive growth in mobile internet use.
As the categories of mobile internet services increase, charges have also been dropping fast.
China's internet penetration is still low at just 22.6%, leaving more room for rapid growth, Cinic said.
Constraints
The study said 234 million people surfed the internet to read or watch news by the end of 2008, a much higher estimate than recently made by the Chinese Academy of Social Sciences.
In 2007, 155 million Chinese internet users relied on the web to read news, accounting for 73.6% of the total internet population, according to Cinic.
It also said the number of Chinese bloggers hit 162 million by the end of 2008.
China's booming internet use comes despite the government's tight grip on the web.
Certain websites deemed politically sensitive are blocked; these include the BBC's Chinese language news site, Reporters Without Borders and some Hong Kong and Taiwan sites.
Access to sites offering diverse political opinions remains highly restricted, even as Chinese intellectuals and activists regularly brave the constraints to post new statements.
The government is also targeting what it calls unhealthy content on the internet. Earlier this month, it launched a campaign to get rid of vulgar and pornographic content, targeting 19 websites and search engines it said had failed to remove unsuitable material.
Authorities in Beijing, meanwhile, actively use the internet to sway opinion, put across actions and ideas, and promote top leaders.
This marks a 41.9% increase on the previous year and is still growing fast, said the government-linked China Internet Network Information Centre.
The study also showed huge increases in the number of people in China accessing the internet through mobile phones.
The report by Cinic also noted that internet use in the countryside was increasing faster than in the cities.
At the end of 2008, the number of net users in China, which has a population of 1.3 billion, was almost the same as the entire population of the United States.
Users in the countryside surged by 60.8% year-on-year to 84.6 million, compared with much more modest growth of 35.6% in the urban areas, the report said.
The Cinic report said 117.6 million people accessed the internet using their mobile phones last year, up 133% from 2007.
Students are the main strength of mobile internet users, the study said: 43.5% of them use their mobile phones to read online news, download music, check email and perform a variety of other tasks.
3G boom
China, with 633.8 million mobile phone users, last week issued long-awaited licences for third-generation (3G) mobile phones to China Mobile, China Telecom and China Unicom.
CHINA'S INTERNET USE
Total users: 298 million
Year-on-year increase: 41.9%
Mobile net users: 117.6 million
Internet penetration: 22.6%
"With the coming of the 3G era, wireless internet will have exponential growth," Cinic said in a statement accompanying the release of its report.
3G phones enable faster data transmission and services such as watching TV, playing online games, wide-area wireless calls and web surfing.
By 2011, the three operators expect to start 3G services all over China, a move which analysts predict will spur further massive growth in mobile internet use.
As the categories of mobile internet services increase, charges have also been dropping fast.
China's internet penetration is still low at just 22.6%, leaving more room for rapid growth, Cinic said.
Constraints
The study said 234 million people surfed the internet to read or watch news by the end of 2008, a much higher estimate than recently made by the Chinese Academy of Social Sciences.
In 2007, 155 million Chinese internet users relied on the web to read news, accounting for 73.6% of the total internet population, according to Cinic.
It also said the number of Chinese bloggers hit 162 million by the end of 2008.
China's booming internet use comes despite the government's tight grip on the web.
Certain websites deemed politically sensitive are blocked; these include the BBC's Chinese language news site, Reporters Without Borders and some Hong Kong and Taiwan sites.
Access to sites offering diverse political opinions remains highly restricted, even as Chinese intellectuals and activists regularly brave the constraints to post new statements.
The government is also targeting what it calls unhealthy content on the internet. Earlier this month, it launched a campaign to get rid of vulgar and pornographic content, targeting 19 websites and search engines it said had failed to remove unsuitable material.
Authorities in Beijing, meanwhile, actively use the internet to sway opinion, put across actions and ideas, and promote top leaders.
Tuesday, January 13, 2009
Gasta News: Top ten online retailers in UK see Increase in Traffic in December 2008
Visits to the top ten online UK retailers grew by an average of 37% year-on-year through the Christmas period, according to Nielsen Online.
Amazon, which averaged 15.6m unique users each month during the Christmas period (October to December) and Play.com, which averaged 5.7m unique users a month, were the only pure-plays to feature in the top ten.
Amazon was top of the list, with Argos coming in second (8.2m users on average per month) and Tesco in third (7.3m MW Live users on average each month).
Littlewoods, which ranked sixth, was the fastest growing site in the top ten after it saw a 66% year-on-year increase.
Asda (8th) grew by 53% over the Christmas period while Marks & Spencer (5th) saw a 46% increase.
Alex Burmaster, communications director of Nielsen Online, said, "Online retail won't be impervious to the tighter financial environment but it has an opportunity to weather the storm better than other elements of the economy, particularly if retailers promote the web as the best way of finding cheaper goods in the most efficient and convenient way possible."
Amazon, which averaged 15.6m unique users each month during the Christmas period (October to December) and Play.com, which averaged 5.7m unique users a month, were the only pure-plays to feature in the top ten.
Amazon was top of the list, with Argos coming in second (8.2m users on average per month) and Tesco in third (7.3m MW Live users on average each month).
Littlewoods, which ranked sixth, was the fastest growing site in the top ten after it saw a 66% year-on-year increase.
Asda (8th) grew by 53% over the Christmas period while Marks & Spencer (5th) saw a 46% increase.
Alex Burmaster, communications director of Nielsen Online, said, "Online retail won't be impervious to the tighter financial environment but it has an opportunity to weather the storm better than other elements of the economy, particularly if retailers promote the web as the best way of finding cheaper goods in the most efficient and convenient way possible."
Monday, January 12, 2009
Gasta Profile:Nortel Networks Corporation
Nortel Networks Corporation (NYSE: NT) with revenues of $11.4 billion in 2006 is a global supplier of networking solutions to both service providers and enterprises. It is a leader in delivering VoIP and Wide Area Networking to carrier customers, holds the number-two position in providing carriers with optical equipment, is the number-one provider of total enterprise telephony lines, and is the second-largest provider of IP business telephony. Its business is organized in four segments: Carrier Networks (CN), Enterprise Solutions (ES) Global Services (GS), and Metro Ethernet Networks (MEN).
Nortel anticipates increase in demand for wireless networking solutions due to network traffic growth to support applications such as mobile video. To cater to this demand, it plans to increase its investment in metro Ethernet to support video delivery over wired as well as wireless access and in next generation products. To capitalize on the trend towards IP converged networks, it is trying to focus on the enterprise market and strengthen its end-to-end convergence solutions.
In 2006, it acquired Tasman Networks to strengthen its data networking portfolio and formed a strategic alliance with Microsoft to accelerate availability of unified communications. In 2005, it formed a joint venture with LG Electronics. In March this year, it announced that it would offer its own set-top box to carriers as part of its IPTV strategy. The set top boxes would be manufactured by its LG-Nortel joint venture.
In May 2007, Nortel announced its Nortel Hosted Solutions for enterprises and service providers. The portfolio, with a strong focus on the enterprise segment includes IP telephony, unified communications, automatic call distribution (ACD), contact centers and other network application services delivered to enterprises through service providers using equipment owned and managed by Nortel. It has also entered into an agreement with Polycom to jointly deliver telepresence and high definition (HD) video conferencing solutions to enterprises.
On the financial front, Nortel reported revenues of $2.56 billion in Q2 2007, a decrease of 8% compared to Q2 2006. Revenues decreased in the CN, MEN and GS segments, partially offset by an increase in the ES segment. The decline in revenue was mainly due to UMTS Access divestiture in 2006. It also reported net loss of $37 million compared to earnings of $342 million in Q2 2006. In Q1 2007, Nortel announced its 2007 Restructuring Plan which would reduce its workforce by 2,900 employees and shift approximately 1,000 positions from higher-cost to lower-cost locations. This plan is expected to save $400 million annually.
Nortel’s market cap is $7.47 billion, well below its annual revenue number. Its stock is on a downward trend since February this year when it had reached a high of $31.6. It is currently hovering around $17.
As the online video driven networking equipment market momentum marches on, a distinct possibility is that Cisco’s competitors would consolidate as a combined force. Today, the networking industry is represented as Cisco and the Seven Dwarfs. Well, if at least 3-4 of the dwarfs get together, the chances of actually being able to compete in specific markets would become higher. In fact, the combination of Nortel, 3Com and Polycom would create more efficient industry dynamics, whereby, rather than also having to compete amongst each other, they can focus their combined energy on competing with Cisco. It would also create a larger entity (although still only one-third the size of Cisco) that has product offerings in most of the important segments on the networking market, from Carriers, to Enterprise, to SME. The missing pieces need to be brought together from the other dwarfs, some of which we will explore this week.
In the meantime, Nortel, like 3Com, needs to continue cleaning up its house.
Nortel anticipates increase in demand for wireless networking solutions due to network traffic growth to support applications such as mobile video. To cater to this demand, it plans to increase its investment in metro Ethernet to support video delivery over wired as well as wireless access and in next generation products. To capitalize on the trend towards IP converged networks, it is trying to focus on the enterprise market and strengthen its end-to-end convergence solutions.
In 2006, it acquired Tasman Networks to strengthen its data networking portfolio and formed a strategic alliance with Microsoft to accelerate availability of unified communications. In 2005, it formed a joint venture with LG Electronics. In March this year, it announced that it would offer its own set-top box to carriers as part of its IPTV strategy. The set top boxes would be manufactured by its LG-Nortel joint venture.
In May 2007, Nortel announced its Nortel Hosted Solutions for enterprises and service providers. The portfolio, with a strong focus on the enterprise segment includes IP telephony, unified communications, automatic call distribution (ACD), contact centers and other network application services delivered to enterprises through service providers using equipment owned and managed by Nortel. It has also entered into an agreement with Polycom to jointly deliver telepresence and high definition (HD) video conferencing solutions to enterprises.
On the financial front, Nortel reported revenues of $2.56 billion in Q2 2007, a decrease of 8% compared to Q2 2006. Revenues decreased in the CN, MEN and GS segments, partially offset by an increase in the ES segment. The decline in revenue was mainly due to UMTS Access divestiture in 2006. It also reported net loss of $37 million compared to earnings of $342 million in Q2 2006. In Q1 2007, Nortel announced its 2007 Restructuring Plan which would reduce its workforce by 2,900 employees and shift approximately 1,000 positions from higher-cost to lower-cost locations. This plan is expected to save $400 million annually.
Nortel’s market cap is $7.47 billion, well below its annual revenue number. Its stock is on a downward trend since February this year when it had reached a high of $31.6. It is currently hovering around $17.
As the online video driven networking equipment market momentum marches on, a distinct possibility is that Cisco’s competitors would consolidate as a combined force. Today, the networking industry is represented as Cisco and the Seven Dwarfs. Well, if at least 3-4 of the dwarfs get together, the chances of actually being able to compete in specific markets would become higher. In fact, the combination of Nortel, 3Com and Polycom would create more efficient industry dynamics, whereby, rather than also having to compete amongst each other, they can focus their combined energy on competing with Cisco. It would also create a larger entity (although still only one-third the size of Cisco) that has product offerings in most of the important segments on the networking market, from Carriers, to Enterprise, to SME. The missing pieces need to be brought together from the other dwarfs, some of which we will explore this week.
In the meantime, Nortel, like 3Com, needs to continue cleaning up its house.
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