Michael Jackson's death triggered surges to the web that slowed Google, crashed Twitter and saw millions of tracks downloaded in days. The horrors in Iran drove people online both inside and outside the country, and the single actions of Iranians with cameras and web connections revealed the truth to the world.

The web has given everyone a voice and it's at times like these the scale of change is clearest. We've been tracking the rise of social media for five years and there are more examples here: www.DigitalTrainingAcademy.com/socialmedia.

Meanwhile in the advertising industry the switch to the web remains unfaltering - even though growth appears to be stalling in the US, brands in every country continue switching budgets online because pressured marketers are looking for accountability. This is something we've seen first hand in auditing the effectiveness of brands' marketing spends.

This month we've also included links and comment about the UK's 'Digital Britain' report and the framework for developing our own digital economy.
Read June 2009

Monthly internet use: key indicators for web users based on global data, May 2009

Total internet users by country across Europe, April 2009

Key indicators for monthly internet use: in Germany, May 2009

Time per person for top 10 parent companies, Germany May 2009

Audience reach for top 10 parent companies in Germany, May 2009

Vodafone are strengthening their ongoing ties to MySpace by launching an online music studio, writes Netimperative. The 8-month campaign will see the firms build a MySpace community geared towards musicians and music fans in the UK, Germany and Spain. The Music Studio will feature:

• an online remixing tool for musicians to play with tracks by established artists;
• tips and tricks on playing and recording music and using MySpace to promote artists;
• regular monthly competitions for bands and artists to promote themselves and win recording time;
• news and interviews from Vodafone-sponsored events across Europe;
• discussion forums and community tools for musicians to link to events.

New research from Hitwise has found that traffic to Twitter has increased 22-fold in the last year. According to the research, Twitter was the UK's 38th most-visited website in May this year and the 5th most-visited social network. In contrast the site only ranked 969th place a year ago in May 2008. 93% of Twitter's growth dates from 2009 as media coverage and increasing numbers of high profile celebrity users have raised public awareness and driven online registrations.
Hitwise have also discovered that Twitter is now the UK's 30th biggest source of traffic for other websites, responsible on average for 1 in every 350 site visits. 55.9% of downstream traffic from Twitter goes to other content-driven media websites including newspapers, blogs, other social networks and news and entertainment sites. In particular, Twitter is now the 27th biggest source of traffic to websites tracked by Hitwise in the "News and Media - Print" category. Twitter is less-successful in motivation shoppers however with only 9.5% of the site's traffic going on to visit online retailers.
The Twitter effect can be tremendous though: online picture site Twitpic is now the third most popular photo website in the UK after Flickr and Photobucket as a direct consequence of receiving 1 in every 13 downstream UK visits from Twitter.
From Hitwise: http://www.hitwise.co.uk, 24/06/2009
Twitter: http://www.twitter.com

HTC and Adobe have announced that the Flash content format that drives much of the high impact visuals on the web will soon be available on Android, writes CrunchGear. It's another small step towards achieving complete adoption of key content tools and much needed if the web experience is to be effectively reproduced on mobile devices.
From CrunchGear: http://www.crunchgear.com, 24/06/2009
Adobe Flash: http://get.adobe.com/flashplayer

European regulators unveiled long anticipated plans this week for guidelines about how social networks such as Facebook and MySpace should handle European privacy rules, writes the Wall Street Journal. Regulation in a young and fast changing space is always risky, and many will argue lacks necessity because of the existing data protection directive. However the guidelines appear to have been set very low, simply reconfirming what would be common knowledge even for novice internet users.

The WSJ confirms that key elements include...

• Sites should offer privacy-friendly default settings.
• Users should be advised that pictures should only be uploaded with the individual's consent.
• Sites must set maximum periods to retain data on inactive users. Abandoned accounts must be deleted.
• Users should be allowed to adopt a pseudonym.

The reason why this matters is that global players such as Facebook are based outside the EU’s jurisdiction and citizens from the 27 European nations would have different types (usually weaker) privacy frameworks on these global sites to the national equivalents. The recommendations also include getting social network owners to place default security settings at a high level and allow users to limit data disclosed to third parties. Sensitive information, such as race, religion or political views are also covered, along with behaviourally targeted advertising.
From the Wall Street Journal: http://online.wsj.com, 24/06/2009

There is a marked increase in the number of people choosing to consume different media simultaneously, confirming the evolution of media multi-taskers according to new research from the European Interactive Advertising Association released in June 2009. The study highlights how consumers are entering a new phase of communications and commerce online and how dual simultaneous media consumption has become standard consumer behaviour.
From DigitalStrategyConsulting.com: http://www.digitalstrategyconsulting.com, 23/06/2009
Digital Strategy Consulting: http://www.digitalstrategyconsulting.com

New toolkits released from Yahoo! this month apply the ease of search engine advertising creation to graphical ads. It’s another significant step in the restructuring of the advertising sector, changing the role of small ad agencies as well as creating a more efficient structure for taking messages to market. Look out for more extensive toolkits from MSN, and widespread adoption by online publishers from the print and broadcast sectors.
Yahoo!: http://uk.yahoo.com, 22/06/2009

Facebook has finally overtaken MySpace in the US according to new research from comScore, writes eMarketer. According to the metrics firm, Facebook received 70,278,000 unique visitors in the US during May this year, a 97% increase on May 2008. Unique visitors to MySpace fell 5% during the same period to 70,255,000. Previously comScore had predicted that it would take until 2010 for Facebook to overcome its rival.
Further evidence of Facebook's current dominance was also seen in the site's roll-out of personalised URLs. Over 3 million users logged on in the first 12 hours to register their chosen suffixes which now replace numerical identifiers for the first time.
In the UK, Facebook had further reason to celebrate this month as comScore also revealed that the site had overtaken Yahoo! during April to become the third most visited website, with 23.4m users.
From eMarketer: http://www.emarketer.com, 18/06/2009
Facebook: http://www.facebook.com

PricewaterhouseCoopers's (PwC) latest Entertainment and Media Outlook report predicts that online advertising in the UK will take 36% of all adspend by 2013, writes Brand Republic. According to the firm, online ad expenditure grew 17.1% (£540m) year-on-year during 2008 to reach £3.35bn, giving it 19.2% of the UK ad market (from 15.5%). The report also predicts that the UK's total internet access market (including both wired and mobile) will grow at a compound rate of 7% between 2009 and 2013 to reach £8.84bn (from £6.32bn).
PwC expects the UK's entertainment and media market to decline until 2010 before growth resumes. Not all sectors will fully recover however: PwC forecasts that the only sectors which will be larger in 2013 than in 2008 are internet access, internet advertising, TV subscriptions and license fees, filmed entertainment and video games.
From Brand Republic: http://www.brandrepublic.com, 16/06/2009
PricewaterhouseCoopers: http://www.pwc.com

The Government has finally published its Digital Britain report by Communications Minister Lord Carter. The 238 page report sets out the Government's "strategic vision" for the next stage of the UK's digital development in order for the country to remain at the "leading edge of the global digital economy". New measures outlined in the report include:

• Universal UK access to broadband speeds of 2Mbps by 2012.
• Setting up a fund to invest in next generation broadband using a 50p monthly levy on all fixed telephone lines.
• A three-year plan to raise digital participation.
• Legal and regulatory changes to fight digital piracy with an increased role given to Ofcom.
• A change in Channel 4's remit, with a new role as the 'open new media authority' (instead of 'the open broadcasting authority').
• Liberalising the mobile spectrum, extending 3G licenses and improving 3G coverage.
• Holding a consultation to examine funding for local, national and regional news (including the proposal to redirect £130m from the BBC licence fee to pay for ITV regional news).
• Setting the digital radio switchover date for 2015.
• Supporting public service content partnerships.

The following is our round-up of the most useful and relevant Digital Britain stories from around the web:

Department for Culture, Media and Sport: Government outlines plans for UK’s digital transition
The Guardian: Digital Britain: What to expect sector by sector from Lord Carter's report
BBC news: Experts react to Digital Britain
Brand Republic: Full coverage of the Digital Britain report
Revolution: Digital Britain: The tea-break guide

Whatever market your business is working in, understanding your customers is key. It's about getting the right message to them at the right time and the right way.

The growth of internet use in India is attracting the focus of global brands, as well as national firms looking for more effective ways to reach upmarket and professional audiences. As online commerce and internet audiences accelerate, the web is moving to the centre of the retail and information culture in key demographic groups.

To support our clients and partners we've collated together research that provides a snapshot of the online economy in India today, and there is a supporting online resources page.

Developing digital strategies for content, commerce and communications in India demands a strong understanding of the role the web, email and social media play in people's changing media mix. If you find the notes useful then add your comments in the supporting pages.
Read Digital intelligence India

Monthly internet use: key indicators for UK web users, May 2009

Time per person for top 10 parent companies, UK May 2009

UK audience reach for top 10 parents companies, May 2009

Virgin Media broadband customers will soon have unlimited access to Universal Music's entire back catalogue for a set monthly subscription, writes Marketing Magazine. Users of the service will pay around £20 a month and will be able to stream and download as much music as they want without limits. Users will be able to keep any MP3 files they download and play them on any compatible device without restriction. Virgin Media is currently in talks with other major record labels to try and sign up further partners before the service goes live later this year. Virgin Media also intends to offer a cut-price "entry level" subscription for people who do not require unlimited access.
From Marketing Magazine: http://www.marketingmagazine.co.uk, 15/06/2009
Virgin Media: http://www.virginmedia.com

Global computer firm Dell has generated sales of over $3m (£1.8m) through its presence on Twitter, writes Revolution. According to the firm, sales have come from Twitter followers clicking directly from tweets to purchase products online. Dell has used Twitter for the last two years and tracks sales which initiate from the microblogging site using its proprietary ecommerce system. Sales from Twitter for the last six months totalled $1m (£600,000).
However, Twitter-led sales currently remain small beer for the computer giant which posted revenues of $12.3bn (£7.5bn) in Q1 2009.
From Revolution: http://www.revolutionmagazine.com, 15/06/2009
Twitter: http://www.twitter.com

Possibly one of the fastest downloads in history. Mozilla's new Firefox 3.1.11 browser clocked up a staggering 150m downloads in its first 24 hours, writes VNU. Apple's Safari is logging a more sedate 11m for Safari 4 (over the first four days).
From Vnunet.com: http://www.vnunet.com, 14/06/2009
Firefox: http://www.firefox.com

The latest European online advertising study from IAB and PricewaterhouseCoopers (PwC) has revealed that online adspend grew 20% during 2008 to reach €12.9bn (£11bn), writes Brand Republic. The study examined the markets in 19 European countries. Although some mature markets showed less than 20% growth, only France and the Netherlands came in below 19% (with 18.5% and 9% respectively).
Online search advertising led the way with 26% growth, rising to €5.6bn (£4.8bn). Overall, search accounted for 43% of all European ad budgets in 2008 (from 41% in 2007). Classified adspend was up 17% on 2007 (to take 25% of all advertising), reaching €3.8bn (£3.25bn). Display advertising increased 17% to €3.3bn (£2.82bn) and email spend remained flat at €200m (£171m).
From Media Week: http://www.mediaweek.co.uk, 11/06/2009
IAB Europe: http://www.iabeurope.eu

Online advertising spend growth slows in maturing markets, December 2007-2008

Growth in online advertising categories across Europe in 2008

The latest US figures from the IAB and PwC show that online adspend fell 5% year-on-year in Q1. Against the previous quarter the decline was even higher at 10%. The results represent the first time that year-on-year figures have been negative since 2002.
However, total US advertising figures from Nielsen suggest a slower drop in online adspend. Their figures for online display advertising show a 3.4% drop (to $2.11bn) against a total quarterly advertising decrease of 12% (to $27.9bn).
At the other end of the scale TNS Media have bucked the trend to report an 8.2% year-on-year rise in quarterly online display advertising against a total fall in the US advertising market of 14.2%.
From ClickZ: http://www.clickz.com, 08/06/2009
IAB US: http://www.iab.net

Internet advertising spend in the US since the internet "boom" in 2009

Advertising spend migration in the US

This weekend the UK’s Channel 4 television network announced 10,000 archived shows are being put online – and for free. Media guardian reported that over 4,000 hours of content on the way, and all viewable through the 4oD catch-up service. The implications are that pressure will grow to release the BBC’s content archives which currently only run to 7 days. Great news for the web and internet users, good news for advertisers who have a new high volume channel for TV commercials, but in a world of television on-demand will there be any role for the linear broadcast schedule?
From Media Guardian: http://www.guardian.co.uk, 07/06/2009
Channel 4oD: www.channel4.com/4od

Nielsen Online have released new research which shows that activity in the UK's online display advertising sector grew 21% year-on-year in the first four months of 2009, writes Media Week. The research studied the online display ad market by tracking three metrics: the number of advertisers; the number of individual campaigns they ran; and the number of ad creatives used. On average, 5,900 advertisers ran online display ad campaigns each month; 11,000 campaigns were run; and 32,000 ad creatives were used.
Growth was predominantly driven by big brand advertisers in the retail and finance sectors such as Tesco, Marks & Spencer, HSBC and Barclays.
From Media Week: http://www.mediaweek.co.uk, 04/06/2009
Nielsen Online: http://www.nielsen-online.com

A new report from Verdict Research estimates that online retail in the UK will grow 13.3% in 2009, despite a predicted decline in total retail of 0.6%, writes Telecoms Europe. According to Verdict, online retail spending will reach £20.9bn by the end of this year as both the number of online shoppers and expenditure per head continue to increase. Verdict predict that online spend will reach £31.2bn by 2013, accounting for 10% of all British retail.
From Telecoms Europe: http://www.telecomseurope.net, 02/06/2009
Verdict Research: http://www.verdict.co.uk

Top 10 retailers in the UK, April 2009

Are marketers putting their budgets in the right place? That's the question we're asking after collating May's research tracking the growth in web audiences. The average Brit spends over 22 hrs online each month, and many social groups spend much more.

45% of this time is taken by top 10 sites in the UK, leaving the next 7,600 sites collectively fighting for the remaining audience minutes (excluding the myriad tiny sites deep in the long tail).

The implication? There are massive opportunities for smarter media planning but marketers are easily out of touch with their customers. Look at where a firm's marketing energy is focussed, and there's often disproportionate time and money in classic media, direct mail and below-the-line activity. Our tip: audit the cost-per-customer for each impact in each channel. Not only could you be in for a real surprise, but when marketing budgets are tight that can be your roadmap for where to make the cuts.

For more about auditing the effectiveness of your marketing, email me back, and in the meantime let me know if you'd like any more on this month's research.
Read May 2009

Active internet users connected at home, March 2009

Monthly internet audience usage, March 2009

Monthly internet usage, France, April 2009

Time per person for top 10 online media groups, France, April 2009

Audience reach for top 10 online media groups, France, April 2009

Screen Digest have predicted that in-game advertising will be worth over $1bn (£627m) by 2014, writes Media Week. The firm's study, "In-Game Advertising: Market Assessment and Forecasts to 2014", forecasts that the sector will grow to take 1.5% of all digital adspend, as advertisers understand the benefits. According to Screen Digest these include scalability, accountability, high levels of audience engagement, and positive brand associations. Adam Smith, futures director at GroupM said "Given gaming is now a mainstream leisure interest, in-game deserves the same consideration as mobile and social media."
From Media Week: http://www.mediaweek.co.uk, 26/05/2009
Screen Digest: http://www.screendigest.com

New research from Forrester has found that 24% of Europeans now regularly use the internet on mobile phones, writes New Media Age. This marks a 20% increase on last year when the firm found that 20% of Europeans used their phones to access the web. The figures rise to 35% and 30% for iPhone and smartphone users respectively. According to Forrester take-up is currently held back by a lack of simple and affordable mobile data tariffs: 60% of smartphone owners with unlimited data plans are regular mobile internet users. The study polled over 14,000 consumers in France, Germany, Italy, the Netherlands, Spain, Sweden, and the UK. Sweden and Italy came top for mobile internet usage, with France coming last.
From New Media Age: http://www.nma.co.uk, 26/05/2009
Forrester: http://www.forrester.com

The presses will stop rolling in Philadelphia, writes The Observer newspaper in the UK. Philadelphia looks set to become the first US city without a local newspaper as both The Daily News and The Inquirer file for bankruptcy. The average US newspaper share price collapsed by 83% in 2008. Local journalism professor Jack Lule concluded: "The old model is not coming back." At Digital we've been forecasting at least 10% of European newspapers will face bankruptcy or stop printing by the end of 2010, with more going online-only.
From The Observer: http://www.observer.guardian.co.uk, 24/05/2009
Digital Insight Report: Newspapers and navigating the perfect storm

Strategy Analytics have revealed that Apple's App Store captured a 12% volume share of the mobile application market during 2008, writes Telecoms.com. However the report also showed that the App Store's commercial value is significantly lower thanks to increased competition between developers which has pushed down application prices.
Mobile phone apps have become an increasingly lucrative market with Google, Nokia, RIM and Microsoft all now vying to emulate Apple's success with their own stores.
From Telecoms.com: http://www.telecoms.com, 22/05/2009
Apple iPhone App Store: http://www.apple.com/iphone/appstore

YouTube has begun to trial pre-roll ads around content from British broadcasting partners, writes ClickZ. The UK trial will include content from Channel 4, BBC Worldwide, Discovery, ITN and National Geographic. Ads will be sold on a CPM basis with revenues shared between both parties. YouTube suggests that ads should be around 15 seconds with the firm imposing an upper limit of 30 seconds. Time caps will ensure appropriate spacing between ads so that they do not feature on every clip.
In further news BBC Worldwide and YouTube have confirmed the continuation of their online partnership which sees BBC content such as Top Gear provided online via a dedicated YouTube channel.
From ClickZ: http://www.clickz.com, 21/05/2009
YouTube: http://www.youtube.com

Google's Chief Executive Eric Schmidt has hinted that the firm may have plans for an online ad exchange, writes Revolution. The idea was first mooted back in February by Google's President of Display Advertising David Rosenblatt, who said that any exchange would be neutral and cater for all ad formats. Speaking at the Google Zeitgeist conference, Schmidt refused to be specific about the firm's plans for an ad exchange, saying "I'm trying to avoid pre-announcing a product, if you get my drift."
This month Google has also been working on a number of new search products aimed at providing better and more relevant results. These include Google Search Options, Google Squared and Rich Snippets.
From Revolution: http://www.revolutionmagazine.com, 20/05/2009
Google: http://www.google.com

Microsoft is expected to unveil its new search engine at the D: All Things Digital conference at the end of the month, writes The Wall Street Journal. The new service, code-named Kumo during development, is now expected to be called Bing when it launches. Bing will replace Microsoft's current service "Live" and is designed to be more user-friendly than other search engines by reducing the time it takes users to find results by grouping them into categories with tabs. A search for a specific model of car might group results into categories such as spare parts, used car ads, message board discussions and videos. Microsoft has readied a $100m advertising campaign to launch Bing in the US but will have an uphill struggle on its hands to increase its market share. According to the latest conScore figures Microsoft has an 8.2% share of the US search market, behind Yahoo! (with 20.4%) and Google (64.2%).
From The Wall Street Journal: http://www.wsj.com, 20/05/2009
Microsoft: http://www.microsoft.com

Overstretched British office workers are now working 2-6 hours every week in bed, explains Credant Technologies in their latest research. A quarter of UK workers are now using mobile devices (laptops, Blackberrys and mobile phones) in bed each night. Their research found that over half (57%) did this for 2 and 6 hours every week. 8% of people claimed they spent more time on mobile devices in the evenings than talking to their partners, and although the research was based on only 300 London office workers, a fifth of people using wireless networks at home did not have security in place.
From Credant: http://www.credant.com, 19/05/2009

The funky microblogging social app could be close to unlocking a massive revenue stream thanks to mobile operators, writes Reuters. Twitter's co-founder Biz Stone this week confirmed they are not introducing advertising, but instead are evaluating revenue-share deals with mobile carriers. The Twitter app allows live updates to be sent from and to mobile phones through SMS, giving a ready-made pathway for micropayments. The model has already been copied by Facebook and our take is that LinkedIn, MySpace and Bebo will all follow whichever approach Twitter settles on. As mobile operators look for new ways to charge data, this model is sure to find powerful allies.
From Reuters.com: http://www.reuters.com, 18/05/2009

Astonishing data from Nielsen Online shows Facebook accounting for 13% of all time online in the UK last month. It’s based on their rigorous methodology, so digital analysts can take some comfort in the accuracy of the findings. The social network accounted for 6.2bn minutes with Windows Live in second place on 4.5bn and Google on 2.6bn.
Nielsen Online: http://www.nielsen-online.com, 14/05/2009

New research from Webcredible has found that 52% of UK mobile phone users now access the internet using their phones. 39% of mobile internet users mostly go online to use email, while 16% mostly use their phones to access social networking sites. Just under 16% predominantly use their phones online to download ringtones. This contrasts with a previous study from 2007 which found that 43% of mobiles phone users went online to download ringtones, 21% accessed email and social networking didn't even register.
Webcredible: http://www.webcredible.co.uk, 13/05/2009

The first survey of UK mobile advertising revenue is now published, and the magic number weighed in at £28.6m. It may feel like a drop in the ocean compared to web ad revenues, but the growth should be north of 50% year-on-year from now on. While the use of mobiles has been at saturation levels for a decade in the UK, mobile advertising has consistently failed to get off the ground. Mobile marketing exploded with SMS and couponing, but beyond ringtones and wallpaper, the restrictions of the channel proved too much for most brands. Finally that’s changing, but as the web converges with mobile, the distinction between mobile web and just ‘the web’ may prove impossible to maintain. The mobile handset is a place for utility, cool apps and things people need for their lives on the move; the notion of buying advertising time in the heart of this most intimate and engaging experience feels like the wrong mindset, at least most of the time. Sure, Google’s search results, sponsored maps and branded content all have a place, but brands anchored to the classic advertising model should think again.
From Brand Republic: http://www.brandrepublic.com, 13/05/2009

Mobile ad spend creeps into the digital media mix, 2008

Nielsen Online's latest research into online traffic has found that the UK's top ten web brands accounted for 45% of all browsing activity in April. In addition, leading brands are continuing to grow their share: last year the top ten accounted for less that 42% of all browsing. In contrast the other 7,625 brands tracked by Nielsen Online receive just 55% of all time spent online in the UK.
Facebook saw the most growth in the past year: its share of time spent online grew 5.6% as total time spent on the site rose 258% (reaching 6,160m minutes in April).
In total the average Brit spent 22 hours 20 minutes online in April, a 34 % year-on-year increase (from 16 hours 36 minutes).
Nielsen Online: http://www.nielsen-online.com, 13/05/2009

Most heavily-used websites - share of internet time

Most heavily-used websites - share of internet time

A new study from Continental Research has shown that British gamers are highly receptive to dynamically served ads which appear during games, writes Netimperative. The research, carried out on behalf of in-game ad firm Massive Inc, found that the average ad recall rate was 54%. In addition, 65% of UK gamers think that in-game ads make games seem more realistic, while 55% find the ads "look cool". Furthermore, brands that advertise in games are also perceived by gamers as innovative.
In-game ads also benefit from frequent and high levels of sustained exposure as gamers tend to spend significant amounts of time playing. Gamers on Massive's online gaming network, for example, average 12 hours per week playing.
From Netimperative: http://www.netimperative.com, 12/05/2009
Continental Research: http://www.continentalresearch.com

Rajar's latest quarterly results have found that 33.8% of British radio listeners now access radio broadcasts through digital devices. Digital listening rose 20m hours/week on the previous quarter to reach 206m hours/week. One fifth of all radio broadcast in the UK is now consumed through digital platforms. Although online radio use in the UK grew 7% year-on-year, it currently remains a small platform. DAB devices now account for 12.7% of all listening (up 10.8% year-on-year), followed by digital TV (3.4%) and online (2.2%). Radio listening via mobile phones was also up, rising 13% year-on-year to reach 13% of all adults aged 15+.
Rajar: http://www.rajar.co.uk, 07/05/2009

Business-related social networking site LinkedIn has now signed up over 40m members worldwide, writes Netimperative. The site has over 10m members in Europe with 2.25m registered in the UK. London now accounts for over 500,000 members alone. In the UK, new memberships from people working in the recruitment and staffing sector have risen 40% as employers look for new ways to find and attract new staff. The site is also seeing strong growth in emerging markets, with 2m members now registered in India.
From Netimperative: http://www.netimperative.com, 06/05/2009
LinkedIn: http://www.linkedin.com

New research from TNS Media Intelligence shows that online display advertising in the US grew 4.6% in 2008, writes ClickZ. According to the firm, internet advertising was one of only five sectors which saw positive growth during the year. Only syndicated television (up 6.5%) and Spanish-language magazines (up 4.9%) saw higher growth than online. Total advertising expenditure for the year was down 4.1% in the US to reach $141.7bn. Newspaper advertising saw the biggest drop, falling 11.8% year-on-year (and down 16.5% in Q4 on 2007). Radio also saw sharp falls, declining 10.3% on the previous year.
From ClickZ: http://www.clickz.com, 05/05/2009
TNS Media Intelligence: http://www.tnsmi.co.uk

There's a polarizing effect in the digital media and marketing sectors: firms with good business models, strong products and great people are weathering the storm, but those without are seeing sustained revenue falls as customers shift.

Recession is accelerating structural change, forcing brands to find new ways to connect with customers and improve their supply chains and value chains. This is across retail, media and marketing services and is unlocking new disruptive business models. What emerges after the storm has passed will be an advertising and media industry with a fundamentally different structure.

Our review of the last month's research and company announcements confirms this. The vast majority of advertisers are boosting their online spend, while heavily cutting classic media. Social networks continue to leap forward - with Facebook putting on 50m new customers since January to cross the 200m mark - and the race to own the mobile space has never been faster.

Smart digital strategies will be the deciding factor for many, so enjoy this month's research digest and let us know if you need more on any of the trends.
Read April 2009

Monthly internet usage

Source: Nielsen Online home and work panel monthly statistics
Nielsen Online: http://www.nielsen-online.com

Time per person for top 10 online media groups

Source: Nielsen Online home and work panel monthly statistics
Nielsen Online: http://www.nielsen-online.com

Active internet users connected at home (m)

Source: Nielsen Online, 2009
Nielsen Online: http://www.nielsen-online.com

Audience reach for top 10 online media groups

Source: Nielsen Online home and work panel monthly statistics
Nielsen Online: http://www.nielsen-online.com

New data from Forrester Research and Shop.org has found that online retail in the US rose an average of 11% in the first three months of 2009, writes eMarketer. Of 80 firms surveyed 58% saw a year-on-year rise in quarterly online sales.
Further research from Citi Investment Research predicts that US online retail sales will grow 4.4% this year (reaching $141bn or £95bn), rising to 16.5% in 2010.
From eMarketer: http://www.emarketer.com, 27/04/2009
Forrester Research: http://www.forrester.com

First quarter results for Amazon beat expectations as revenues grew 18% to $4.89bn (£3.33bn), writes The BBC. Profits were up 24% to $177m (£121m) as sales for the firm's new Kindle 2 e-book reader soared. US sales were up 21% during the quarter, with overseas sales growing 15% during the same period. The firm now expects both sales and profits to rise again during the second quarter.
Amazon was recently voted the second most-popular retailer in the UK behind Tesco, in a TNS Worldpanel poll.
From BBC News: http://news.bbc.co.uk, 24/04/2009
Amazon UK: http://www.amazon.co.uk

Revenues at Microsoft have been hit by the global economic slowdown as sales of PCs have fallen, writes Brand Republic. Revenues for the quarter ending March 31 were down 6% year-on-year reaching $13.65bn (£9.31bn). Revenues from the firm's PC software division dropped 16%, while those from its internet division were down 14%. Profits were down 32% though still managed to reach $2.98bn (£2bn) on the back of cost-cutting measures and 5,000 job cuts. Shares rose 3% on the news as Microsoft announced further cost-cutting measures.
From Brand Republic: http://www.brandrepublic.com, 24/04/2009
Microsoft: http://www.microsoft.com

Growing iPhone sales helped Apple generate revenues of $8.16bn (£5.61bn) in the three months to 28 March - up 9% from $7.96bn (£5.6bn) the previous year, writes Telecoms.com. Profits reached a record $1.21bn (£832m). Apple sold 3.79m iPhones during the period, a 123% year-on-year increase in sales.
In further news the firm has also revealed that consumers have downloaded over 1bn applications from its App Store since its launch in August 2008. The service now offers over 35,000 applications in 77 countries.
From Telecoms.com: http://www.telecoms.com, 23/04/2009
Apple: http://www.apple.com

Yahoo! has announced it is to cut 5% of its workforce following news that its revenues dropped 13% to $1.58bn in the first quarter of this year, writes Brand Republic. Year-on-year profits fell 78% to reach $118m (£81m) during the same period.
The firm is continuing its expansion into the mobile content sector with the UK launch of Yahoo! Mobile. The site provides easy one-stop access to Yahoo search, email and popular social networks in addition to instant message, address book and calendar tools.
From Brand Republic: http://www.brandrepublic.com, 22/04/2009
Yahoo! Mobile: http://new.m.yahoo.com

The annual Internet Ad Barometer report from the European Interactive Advertisers Association (EIAA) has found that 70% of European advertisers intend to increase their online adspend during 2009. In addition, only 8% of firms are intending to cut their online budgets this year. Advertisers are primarily cannibalising other media budgets in order to fund the increases: 37% of firms are cutting TV budgets, 32% are cutting newspaper budgets and 46% are cutting magazine budgets. Online is increasingly playing a bigger part in ad strategies and 47% of firms now see it as "an essential factor within the marketing mix" (up from 38% in last year's study). 16% of advertisers are now also increasing their pan-regional campaigns (from 11% in 2008).
EIAA: http://eiaa.net, 22/04/2009

Google has posted its first ever quarterly drop in revenues, writes Netimperative. The firm saw revenues of $5.51bn (£3.7bn) during Q1 2009 - a 3% drop from the last three months of 2008. However year-on-year revenues were up 6% from the first quarter of 2008. Income for the period reached $1.42bn (£959m), from $1.31bn (£884m) the year before. Google-owned sites generated 67% of all revenues (equivalent to $3.7bn or £2.5bn) - up 9% from last year. Revenues from AdSense were down 3% on last year and accounted for 30% of total revenues ($1.64bn or £1.10bn).
In other news, Google has been named the world's first $100bn-brand in the latest BrandZ survey. The firm's brand value has been put at $100,039m (£67,384m) - a 16% year-on-year rise. Microsoft and Coca-Cola came second and third respectively. Despite the global economic crisis, the value of the top 100 brands grew 2% to $1.95tn (£1.31tn). 85 of this year's top 100 brands were in the top 100 list last year.
From Netimperative: http://www.netimperative.com, 17/04/2009
Google: http://www.google.com

The latest forecast from ZenithOptimedia predicts that global media spend will decrease by 6.9% during 2009, writes Brand Republic. In particular the firm expects drops of 8.7% in the UK, 8.3% in the US, 5.5% in Germany and 5% in Japan. All forms of media will see cuts except for online which is predicted to grow 8.6% worldwide this year to $54bn (overtaking magazines for the first time). Online's share of global adspend will also grow, from 10.4% in 2008 to 12.1% in 2009, Only television will also increase its share (from 38.1% to 38.6%) though actual spend will fall 5.5% to $173bn.
The firm now expects positive growth to return in 2010, with the global spend forecast to rise 1.5%.
From Brand Republic: http://www.brandrepublic.com, 14/04/2009
ZenithOptimedia: http://www.zenithoptimedia.com

Facebook has added over 50m new users since January 2009, bringing its total membership to over 200m - nearly half of whom are in Europe, writes Brand Republic. Worldwide over 500,000 new users are joining the site every day. According to the figures more than one in four people with internet access visited Facebook in February. Significantly the majority of new users are no longer of student age - during the first quarter the fastest-growing segment of Facebook's US population was aged 26 to 44. Data from comScore also shows that Facebook accounts for one third of all social networking in Europe. In February 2009 Facebook accounted for 4.1% of all minutes spent online in Europe, up from 1.1% in the year before. The site's largest European audience is in the UK with 22.7m visitors (up 75% year-on-year).
According to Silicon Alley Insider, if Facebook were a country, it would come fifth in the world after China, India, the US and Indonesia.
From Brand Republic: http://www.brandrepublic.com, 09/04/2009
Facebook: http://www.facebook.com

When Wilmington, publishers of the iconic 'Press Gazette' announced today they were stopping printing it underscored the scale of shift to the web. Like so many business journals, there's a website that continues more content tools planned, but the print edition's life is over.
From pressgazette.co.uk: www.pressgazette.co.uk 06/04/2009

The IPA's latest Bellwether survey indicates that the rate of adspend budget cuts slowed in Q1 2009, writes Brand Republic. The IPA also found that the number of firms with positive outlooks grew from 5% to 14%. The IPA believes that the bottom of the market has now been reached, although the majority of firms are still reporting advertising budget cuts. However the proportion of firms who believe that their prospects are worsening fell from 63% last quarter to 44%.
In total, traditional media (including television, press, radio and outdoor) saw cuts of 34% during Q1. Online advertising and search also saw budget cuts, though these remained much lower at 10% and 2.4% respectively. Overall though, online continued to grow its share of total UK ad budgets at the expense of other sectors.
From Media Week: www.mediaweek.co.uk, 06/04/2009
IPA: http://www.ipa.co.uk

According to new research from Netpop Research, 56% of subscribers with web-enabled phones in China (102m people) use them to go online, writes ClickZ. In comparison only 31% of people in the US with web-enabled phones use them to connect to the web (18m users). Chinese mobile users spend between 2-3% of their monthly incomes on mobile voice and data subscription plans, while in the States users are more likely to spend only 1%. In contrast, costs for premium content tend to be lower in China: mp3s cost around $0.25 compared to $1 in the US.
From ClickZ: http://www.clickz.com, 03/04/2009
Netpop Research: http://www.netpopresearch.com

It's a stepchange for the brand, writes printweek.com. Every brand is wrestling with the role of the web in their media mix, but the announcement of breakfast cereals giant Kellogg's that TV is being dropped for their next launch in favour of print and online is a massive psychological step in FMCG brand strategy.
From Printweek.com: http://www.printweek.com, 01/04/2009
Kellogg's: http://www.kelloggs.co.uk

Latest moves from the Federal Trade Commission in the US suggest the long awaited change in culture for social marketing online is near to arrival writes the Financial Times. But interesting that this looks set to target models where there is payment in cash or kind to people who recommend. Some consumer groups will want much more, but maybe the model reflects a fair compromise – after all, isn’t this simply a web centric distinction between advertising and editorial.
From the Financial Times: www.ft.com 02/04/2009

In a year that will see the print editions of many newspapers fold, you could be forgiven for thinking that the switch to web was complete. Not so. Latest data on the US market shows a massive 84% leap in year on year traffic growth with free-to-post CraigsList now taking a whopping 97 of the 100 top sites. If audiences are still doubling year on year then the switch from print to web is still in the middle of its tipping point - and that's in the world's largest and most web advanced classified market. The real shifts are yet to be felt, which means across Europe the newspaper and magazine industry is yet to see the majority of listings and eyeballs move online. Ouch.
From PaidContent.org: www.PaidContent.org 01/04/2009
Hitwise: www.hitwise.com

Online adspend in the UK grew 17.1% during 2008 to reach £3.35bn, a year-on-year increase of £540m, according to IAB UK's bi-annual online advertising expenditure study. In comparison, total UK advertising fell 3.5% in the same period to £17.5bn. In total, online advertising accounted for 19.2% of all UK advertising during 2008 (from 15.5% in 2007). However this peaked at 19.8% in the second half of the year, overtaking total press display advertising. The UK is now the world's leading online advertising market: £1 in every £5 of ad budgets is spent online.
Paid-for search remained the leading sector, accounting for 59.3% of all online advertising, with year-on-year growth of 22.7% (to £1.987bn).
IAB UK: http://www.iabuk.net, 01/04/2009

The latest Internet Advertising Revenue Report from the IAB US and PricewaterhouseCoopers reveals that total online ad revenues totalled $23.4bn (£15.77bn) in 2008, up 10.6% on 2007 ($21.2bn or £14.28bn). The figures represent the fifth year of consecutive record results, although growth slowed by 50% to the lowest rate since 2002. Q4 revenues reached a record $6.1bn (£4.11bn), passing the $6bn barrier for the first time on year-on-year growth of 2.6% (up $154m (£104m) for $5.9bn (£3.98bn) in Q4 2007). Search advertising continues to hold the lion's share of online adspend accounting for 45% of revenues ($10,546m or £7.11m) from 42% in 2007 ($8,805m or £5.93m).
Projections from eMarketer for 2009 expect growth to continue to slow, reaching 4.5% during the year on total online adspend of $24.5bn (£16.5bn). However, much bleaker figures from Screen Digest predict a 5% fall in online adspend during 2009.
IAB US: http://www.iab.net, 30/03/2009

Online Advertising Spend: US
US web advertising bucks recession

Source: IAB UK: http://www.iab.net

The switch to online is accelerating as the tough economy forces brands to rethink their marketing. Smart digital strategies are as much about cutting costs and boosting efficiency, as about increasing sales.

In our monthly digest of research and news, we track how Twitter put micro-blogging into the mainstream, and will now monetise all those conversations. Our predictions on the timing of online video going mainstream came true, with 30m Brits now watching video on the web. Social networking and video emerge as the key drivers in boosting the time people spend online - now predicted to average 7 years per person. Our country focus this month is on Germany, Europe's second largest internet commercial market to profile the market.

Firms applying these trends to their digital strategy are navigating the recession. So if your team could benefit from our strategy health checks then email me back. Meanwhile, enjoy the research and if you'd like deeper research in other areas of digital media and marketing then mail us for the details.
Read March 2009

Skype is to launch the first version of its VoIP service for the iPhone, writes the BBC. The service will work using the phone's wi-fi connection but not the mobile network. Calls to other Skype users will be free although other calls will be charged. The software will not feature video conferencing although the firm intimated it might be included in a future version. Skype is also planning to launch a version for BlackBerry phones in May.
Earlier this month Skype announced a new corporate service dubbed Skype for SIP. The software will enable workers to make local and international calls via standard office phones without the need to go through a PC.
From BBC News: http://news.bbc.co.uk, 30/03/2009
Skype: http://www.skype.com

Twitter has launched its first third-party advertisements, writes Brand Republic. The firm has launched a new website aimed at business users dubbed ExecTweets which pulls together posts from corporate executives. The site was created in conjunction with ad agency Federated Media and has been sponsored by Microsoft.
Twitter has also signed a commercial deal in the UK with Vodafone allowing Vodafone subscribers to send and receive tweets as SMS messages through its network. Twitter was forced to suspend SMS updates in the UK last August following huge traffic growth and rising costs.
From Brand Republic: http://www.brandrepublic.com, 24/03/2009
ExecTweets: http://www.exectweets.com

According to new research commissioned by online bank Smile, the average person in the UK will spend 7.2 years of their life online, writes Netimperative. This is equal to 6.1 weeks a year or 19.6 hours each week. The study found that internet users spend the most time emailing (46 minutes each day), using social networking sites (34 minutes), online shopping (33 minutes), general web surfing (33 minutes) and online banking (22 minutes). On average web users spend £873 a year online - equivalent to £54,000 over a lifetime.
From Netimperative: http://www.netimperative.com, 24/03/2009
Smile: http://www.smile.co.uk

Ofcom has revealed that 42% of the British population has used the internet in the last year to access government services, including searching for information and filling in official forms. For those with internet access at home the figure rises to 55%. In addition, 70% of those polled (equivalent to 60% of the general population) believe that the internet has made it easier to engage in citizen participation activities such as signing petitions or contacting MPs. However, the study also determined that people from deprived areas are much less likely to use such services over the internet - only 15% of those polled said that they had done so.
Ofcom: http://www.ofcom.org.uk, 20/03/2009

New data from comScore has found that the UK's total audience for online video grew 10% in the year ending January 2009, reaching 29.6m unique viewers (aged 15+), writes Netimperative. 80.1% of the total UK online audience watched a video over the internet during the same period.
YouTube accounted for 99% of all videos viewed on Google-owned sites, as the site served over 2bn video requests. In total, Google-owned sites attracted 23.7m online viewers (a 14% increase year-on-year). The BBC came in second place with 6.8m viewers, followed by Microsoft (4.3m) and Facebook (3.6m).
Further research from Hitwise estimates that total traffic to online video websites grew 40.7% in the 12 months to February 2009. According to the firm 1 in every 35 web visits went to a specialist video website during February 2009, compared to 1 in 50 visits the year before.
From Netimperative: http://www.netimperative.com, 17/03/2009
comScore: http://www.comscore.com

Top online video properties: UK
Ranked by total unique UK internet viewers, Jan 2009

Source: comScore: http://www.comscore.com

Top 5 television broadcasters: UK
Ranked by total videos viewed online, Jan 2009

Source: comScore: http://www.comscore.com

Most visited video websites: UK
Ranked by market share of UK internet visits, Feb 2009

Source: Hitwise: http://www.hitwise.co.uk

The latest Quarterly Survey of Advertising Expenditure study from the Advertising Association shows that online adspend reached £3.3bn during 2008 - an increase of 17.3%, writes Brand Republic. All other media fell during 2008 as total adspend across all media declined 3.9% during the year. Fourth quarter expenditure was hit particularly hard with expenditure down 9.6% year-on-year.
From Brand Republic: http://www.brandrepublic.com, 16/03/2009
Advertising Association: http://www.adassoc.org.uk

Mobile web use in the US has risen to 29% of worldwide traffic, putting the UK in second place with 20%, reports new research from Bango. There are now 245m subscribers with mobile web access in the US. In addition the US is now the fastest growing country for mobile web payments, accounting for 57% of the world's total (compared to 38% in the UK). According to the firm, traffic and access have been driven by the success and publicity around Apple's iPhone.
Bango: http://www.bango.com, 12/03/2009

Mobile internet use: UK
Comparative estimates (m), 2008

TNS Global has found that 74% of the world's digital messages were sent via mobile devices in January 2009 - a 15% year-on-year rise. In emerging markets the figure is even more striking, with 9 out of 10 messages being sent via mobiles. Some growth is being driven by mobile-based instant messaging which is now used by 13% of all mobile users (from 8% in 2008) and in particular by 41% of all smartphone users (from 13% in 2008).
Email is also increasingly moving away from the PC- in Japan 40% of all sent emails now come from mobile devices. In North America 69% of those who use email on the phones now access it daily (compared to 43% worldwide).
TNS Global: http://www.tns-us.com, 11/03/2009

Google has launched a trial of behavioural targeted display advertising across its content network and YouTube, writes Marketing. The firm has dubbed the service "interest-based advertising" and it is in the process of approaching agencies and advertisers with a view to signing them up to a global beta test. By using a DoubleClick cookie stored on a browser the service can build up an anonymous profile of a user's interests based on YouTube video views, Google network content views and advertiser sites visited. Users can choose to opt out by using Google's "Ads Preferences Manager".
This month Google has also launched its Street View mapping service for the first time in the UK, providing 360-degree views of 25 cities throughout the country. Partners involved in the launch include Visit Britain, FancyaPint.com, the office of the London Mayor and the Tate group. The service can be accessed using Google Maps and Google Earth.
From Marketing Magazine: http://www.marketingmagazine.co.uk, 11/03/2009
Google: http://www.google.co.uk

67% of the world's online audience now use "Member communities" (including social networking sites and blogs) according to a new report from Nielsen Online, reports Brand Republic. The rise in use now puts the category in fourth place behind search, portals and PC software but ahead of email which has dropped to fifth. The study, titled "Global Faces and Networked Places", found that 69% of
UK internet users now use "Member communities". In addition, 47% of all UK internet users visit Facebook every month (against a 30% average in the nine markets tracked). Brits also spend more time visiting social networks and blogs, averaging 1 in every 6 minutes (compared to the global average of 1 in every 11 minutes). Traffic is increasingly being driven by older users: the highest growth in 2008 came from the 35-49 year-old demographic (up 11.3m).
Time spent visiting "member communities" accounted for nearly 10% of all time spent online in 2008.
From Brand Republic: http://www.brandrepublic.com, 09/03/2009
Nielsen Online: http://www.nielsen-online.com

Online communities: "Global" audience
"Member Community" website reach two thirds of web users, 2008

Source: Nielsen Online: http://www.nielsen-online.com

Online communities: Time spent
Growing share of time spent "Member Community" websites, Jan 2009

Source: Nielsen Online: http://www.nielsen-online.com

Searches to Facebook in the UK rocketed during the last quarter of 2008, putting the site in second place after Google.co.uk, writes Brand Republic. 1 in every 42 online searches included the term "Facebook" and the site received 52% more searches than YouTube. Overall, Facebook was included in 2.39% of all UK searches, followed by YouTube (1.57%), eBay (1.25%) and Bebo (0.96%). The BBC came in fifth with 0.86% and was the most searched for "offline" brand during the period.
Facebook launched a redesign of many of its features this month, including a new "Twitter-style" follow feature which allows users to track updates from celebrities and businesses. The firm is also set to increase the speed of updates and profile changes on the site.
From Brand Republic: http://www.brandrepublic.com, 05/03/2009
Facebook: http://www.facebook.com

Most searched for brands: UK
Ranked by market share of total UK internet searches, Jan 2009

Source: Hitwise: http://www.hitwise.co.uk

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Senior researcher: Ben Le Foe

Ben moved into online in 1999 as a channel producer for AOL. His work began with the creation of content and quickly expanded to include the development and nurturing of communities in a pioneering publishing model we now know more familiarly as 'Web 2.0'. Ben joined Digital in 2001 and has been researching and writing for Digital Intelligence ever since.