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
Showing posts with label Digg. Show all posts
Showing posts with label Digg. Show all posts
Thursday, January 15, 2009
Thursday, January 08, 2009
Gasta Opinion: Why the forecasters are wrong about digital in 2009
While the pundits may be singing a similar tune when it comes to digital advertising's immediate future, here are a few points they may not have considered.
It's the first full work week of the New Year, and already I'm tired of the constant vacillation in moods concerning the health of internet marketing.
Depending on whom you believe, digital marketing will either follow newspapers into oblivion in 2009, or it will be hit hard but not quite as hard as other media. Hardly any of the pundits give it a positive outlook. And that's a shame, with self-fulfilling prophecies and all…
There are quite a few assertions, though, that are fairly consistently questionable from pundit to pundit when it comes to predicting digital's future. Among them:
1. Failing to grow at the same rate as last year is some sort of failure -- If digital advertising grew at 10-15 percent last year, and it will hit only 7-9 percent growth this year, that's not a failure. Accelerated year-over-year growth for any market sector, whether it be manufacturing, biotech engineering, or financial services, is unsustainable in the long term. Things have to slow down at some point. If digital advertising slows down but still grows in an economy where the word "Depression" is still commonly used in headlines for op-ed pieces, I think we're doing rather well, thankyouverymuch!
My other issue with this is that more marketers are doing things with digital that are not classified as advertising and probably don't get tracked by the prognosticators. Suppose your recommended solution to an e-commerce client is not to buy a bunch of ad banners, but instead to pay to have their digital shelf presence enhanced. Is that advertising? No. Does it address the business problem your client is trying to solve? Most definitely. Will such a deal get picked up by the powers-that-be who track internet spending? Probably not.
2. Video and social media need an ad model -- It's true that in order to make money the way that Yahoo, MSN, and Platform-A do, Facebook will need to improve its ad model. And yes, something will have to come along that can replace pre-roll and overlay ads in video. But hinging digital's growth potential on these ad model conundrums is a mistake, I think.
If video advertising won't scale appropriately (and I do believe it will to a certain degree in 2009), marketers might turn to other non-advertising ways to leverage video. Viral strategies, video syndication, and content sponsorship are all ways of making video work in ways that enhance the bottom line without registering on someone's radar as an ad spend.
As long as social networks can continue to capture everyone's attention the way they have in the last few years, I doubt the lack of an ad model will put them under. Not as long as I'm spending what I do on things like Facebook gifts and Facebook ads. I think there's a lot of potential in something like Facebook ads -- not the big banner deals they do, but the smaller, targeted buys that would appeal to small business marketers. I've used Facebook ads both to recruit people for positions at Underscore and to try to sell my home. In both cases, sub-$100 investments have yielded huge gains. If Google still has plenty of potential to roll up many thousands of small, self-serve ad deals in order to make money, why not Facebook?
3. Performance-based advertising will be where the growth is -- I've seen this prediction made by many of the pundits, followed by some Google-flattering comment about how search will drive modest growth in 2009. In the short term, this might be the case, but I think we've already seen what happens in digital when too many advertisers shift their focus to DR and performance-based digital media. Things quickly get crowded. Clearance issues abound. Lead and sale volumes drop sharply unless concessions are made with respect to price and environment. This is how we weathered the last downturn, and display never really went away and experienced a rebirth when the economy turned around and marketers learned to trust digital again.
I question these three assertions, and I'm skeptical that the equation is as simple as many of the pundits make it out to be. I'm also optimistic for another reason: Analysts and pundits who don't work in digital on a day-to-day basis often have trouble understanding the dynamic of how marketing budget decisions are made. I see a lot of potential out there for marketers and brand managers to come to the conclusion that their diminished budgets can't afford last year's levels of broadcast, and for those marketers to consider digital-heavy or digital-only options for marketing campaigns.
However, it turns out in 2009, I don't think we should resign ourselves to slowed growth or declines this year. People who work in digital tend to be people who thrive in chaos. There's certainly a good deal of chaotic behavior out there in the floundering economy, and I wouldn't be surprised if we figure out how to capitalize on it this year.
Tom Hespos is president of Underscore Marketing and blogs at Hespos.com.
It's the first full work week of the New Year, and already I'm tired of the constant vacillation in moods concerning the health of internet marketing.
Depending on whom you believe, digital marketing will either follow newspapers into oblivion in 2009, or it will be hit hard but not quite as hard as other media. Hardly any of the pundits give it a positive outlook. And that's a shame, with self-fulfilling prophecies and all…
There are quite a few assertions, though, that are fairly consistently questionable from pundit to pundit when it comes to predicting digital's future. Among them:
1. Failing to grow at the same rate as last year is some sort of failure -- If digital advertising grew at 10-15 percent last year, and it will hit only 7-9 percent growth this year, that's not a failure. Accelerated year-over-year growth for any market sector, whether it be manufacturing, biotech engineering, or financial services, is unsustainable in the long term. Things have to slow down at some point. If digital advertising slows down but still grows in an economy where the word "Depression" is still commonly used in headlines for op-ed pieces, I think we're doing rather well, thankyouverymuch!
My other issue with this is that more marketers are doing things with digital that are not classified as advertising and probably don't get tracked by the prognosticators. Suppose your recommended solution to an e-commerce client is not to buy a bunch of ad banners, but instead to pay to have their digital shelf presence enhanced. Is that advertising? No. Does it address the business problem your client is trying to solve? Most definitely. Will such a deal get picked up by the powers-that-be who track internet spending? Probably not.
2. Video and social media need an ad model -- It's true that in order to make money the way that Yahoo, MSN, and Platform-A do, Facebook will need to improve its ad model. And yes, something will have to come along that can replace pre-roll and overlay ads in video. But hinging digital's growth potential on these ad model conundrums is a mistake, I think.
If video advertising won't scale appropriately (and I do believe it will to a certain degree in 2009), marketers might turn to other non-advertising ways to leverage video. Viral strategies, video syndication, and content sponsorship are all ways of making video work in ways that enhance the bottom line without registering on someone's radar as an ad spend.
As long as social networks can continue to capture everyone's attention the way they have in the last few years, I doubt the lack of an ad model will put them under. Not as long as I'm spending what I do on things like Facebook gifts and Facebook ads. I think there's a lot of potential in something like Facebook ads -- not the big banner deals they do, but the smaller, targeted buys that would appeal to small business marketers. I've used Facebook ads both to recruit people for positions at Underscore and to try to sell my home. In both cases, sub-$100 investments have yielded huge gains. If Google still has plenty of potential to roll up many thousands of small, self-serve ad deals in order to make money, why not Facebook?
3. Performance-based advertising will be where the growth is -- I've seen this prediction made by many of the pundits, followed by some Google-flattering comment about how search will drive modest growth in 2009. In the short term, this might be the case, but I think we've already seen what happens in digital when too many advertisers shift their focus to DR and performance-based digital media. Things quickly get crowded. Clearance issues abound. Lead and sale volumes drop sharply unless concessions are made with respect to price and environment. This is how we weathered the last downturn, and display never really went away and experienced a rebirth when the economy turned around and marketers learned to trust digital again.
I question these three assertions, and I'm skeptical that the equation is as simple as many of the pundits make it out to be. I'm also optimistic for another reason: Analysts and pundits who don't work in digital on a day-to-day basis often have trouble understanding the dynamic of how marketing budget decisions are made. I see a lot of potential out there for marketers and brand managers to come to the conclusion that their diminished budgets can't afford last year's levels of broadcast, and for those marketers to consider digital-heavy or digital-only options for marketing campaigns.
However, it turns out in 2009, I don't think we should resign ourselves to slowed growth or declines this year. People who work in digital tend to be people who thrive in chaos. There's certainly a good deal of chaotic behavior out there in the floundering economy, and I wouldn't be surprised if we figure out how to capitalize on it this year.
Tom Hespos is president of Underscore Marketing and blogs at Hespos.com.
Monday, November 24, 2008
Gasta News:Mobile internet is growing eight times faster than PC-based web
Mobile internet is growing eight times faster than PC-based web
The mobile internet is growing eight times faster than traffic to the PC-based web, according to the first set of mobile data from Nielsen Online.
The research company has released its first Mobile Media findings which show traffic on the mobile internet increased by 25% to 7.3m during 3Q 2008. The survey found 25% of mobile internet users are aged 16-24 compared with just 12% who are older than 55.
BBC News is the most popular mobile internet site, attracting 1.7m
Kent Ferguson, senior analyst for Nielsen, said the mobile web was a great opportunity for advertisers and publishers to reach important demographic groups. "People often need fast, instant access to weather or sports news and mobile can obviously satisfy this, wherever they are," he said.
The mobile internet is growing eight times faster than traffic to the PC-based web, according to the first set of mobile data from Nielsen Online.
The research company has released its first Mobile Media findings which show traffic on the mobile internet increased by 25% to 7.3m during 3Q 2008. The survey found 25% of mobile internet users are aged 16-24 compared with just 12% who are older than 55.
BBC News is the most popular mobile internet site, attracting 1.7m
Kent Ferguson, senior analyst for Nielsen, said the mobile web was a great opportunity for advertisers and publishers to reach important demographic groups. "People often need fast, instant access to weather or sports news and mobile can obviously satisfy this, wherever they are," he said.
Thursday, January 17, 2008
Gasta what is Digg?
The new Gasta web.20 services are designed to compliment services like Digg to enable users to share content and recommend 'stuff' to each other, the only diference between gasta's new services and Digg is that Gasta offers everything on the one page right before your eyes.
This is what Digg is all about.
Digg is a place for people to discover and share content from anywhere on the web. From the biggest online destinations to the most obscure blog, Digg surfaces the best stuff as voted on by our users. You won’t find editors at Digg — we’re here to provide a place where people can collectively determine the value of content and we’re changing the way people consume information online.
How do we do this? Everything on Digg — from news to videos to images to Podcasts — is submitted by our community (that would be you). Once something is submitted, other people see it and Digg what they like best. If your submission rocks and receives enough Diggs, it is promoted to the front page for the millions of our visitors to see.
And it doesn’t stop there. Because Digg is all about sharing and discovery, there’s a conversation that happens around the content. We’re here to promote that conversation and provide tools for our community to discuss the topics that they’re passionate about. By looking at information through the lens of the collective community on Digg, you’ll always find something interesting and unique. We’re committed to giving every piece of content on the web an equal shot at being the next big thing.
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