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Digital Intelligence
The monthly review of new research and developments in digital marketing

May 2008

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Digital Strategy Consulting


The latest US online adspend data shows continued strong growth as brands continue to move budgets online. New research is also continuing to identify online's specific strengths and role in cross-media campaigns.

Days away from the launch of Apple's new model iPhone it's no coincidence that this month we have focussed on developments taking place in the mobile phone sector. Recent trends and developments suggest the mobile web is clearly on course to reach its tipping point - mobile-based IM and social networking are set to make us more connected than ever before. No surprise then that key players including Microsoft and Vodafone are jockeying for position to give consumers and advertisers the tools they didn't even know they needed a year ago.

Best from all @ Digital


Danny Meadows-Klue
Founder and Chief Executive
Digital Strategy Consulting

 

Advertising

US online ad revenues reach $21.2bn during 2007
The latest IAB US / PwC online adspend report puts total online ad revenues for 2007 at $21.2bn (£10.78bn) - up 26% on 2006's record figure, writes eMarketer. Q4 2007 revenues reached $5.9bn (£3bn) - the highest ever quarterly figure and a 24% increase year-on-year. The study found that search, display, classifieds and lead generation all continued to grow. Consumer advertisers remained the largest category representing 55% of all 2007 revenues (from 52% in 2006).
From eMarketer: http://www.emarketer.com, 23/05/2008
IAB US: http://www.iab.net

Source: eMarketer
eMarketer: http://www.emarketer.com

Source: Hitwise
eMarketer: http://www.emarketer.com

Source: Hitwise
eMarketer: http://www.emarketer.com

TV ads more effective in conjunction with online
A new joint study from the Internet Advertising Bureau (IAB) and Thinkbox has found that consumers who see an advert both online and on television are more likely to purchase products than those who have only seen an ad on one of those media. The study tested 3,000 people using six campaigns from car, FMCG and finance brands which featured both TV and rich media advertising. Taken across all six campaigns 40% of those tested said that they were likely to use or purchase a brand in future after seeing an ad in one medium. However this proportion rose to 61% when users had seen an ad in both mediums. According to Thinkbox the research shows that online is best used as a complementary tool to an existing TV campaign rather than as an extension which is trying to reach a new audience.
From Brand Republic: http://www.brandrepublic.com, 07/05/2008
IAB UK: http://www.iabuk.net

Ireland: offline sales influenced by online ads
The latest "State of the Net" report by AMAS suggests that Irish consumers are highly influenced by online ads, writes ENN. According to the study 67-87% of visitors to 18 sites tracked went online to research offline purchases. AMAS also said that Ireland is close to reaching the 1m broadband subscriber "tipping point". The firm currently puts Ireland's broadband population at 900,000 - well above the OECD's estimate of 767,800 users from the close of 2007.
ENN: http://www.electricnews.net, 23/05/2008
AMAS: http://www.amas.ie

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Companies

MySpace opens up... Facebook follows suite

MySpace is to allow its users to share their public profiles and data directly on other sites, writes ENN. Yahoo!, eBay, Photobucket and Twitter have already signed up to the so-called data availability initiative. Users will be able to have single updates appear automatically across a number of sites. Users will also be able to have their MySpace content directly linked to their Yahoo! Instant Messenger service.
Last year MySpace also signed up for the Google-led OpenSocial project which aims to build a common framework for social networking applications to run.
Facebook is also preparing to open up its profiles with the coming launch of Facebook Connect. In a similar vein to MySpace this will allow users to "connect" their public profiles from other sites with their Facebook profile. The announcement was followed by news that Facebook had borrowed $100m to fund new servers and data centres. Facebook remains the UK's most popular social networking site with 14.35m UK unique users during April (up 7.2% from the previous month).
Brand Republic: http://www.brandrepublic.com, 09/05/2008
MySpace: http://www.myspace.com

Google opens AdSense to third party ad serving and tracking
Google has opened up its AdSense content network in the US to allow advertisers to serve and track ads using approved third-party providers, writes Netimperative. Previously advertisers had to use Google's own technology for managing ads through AdSense as Google did not have a review mechanism in place to ensure ads complied with its standards and policies. The list of certified suppliers includes Mediaplex, Eyeblaster and Dynamic Logic. Google aim to roll-out the changes in the UK and elsewhere in the near future.
Netimperative: http://www.netimperative.com, 20/05/2008

Google UK: http://www.google.co.uk

Yahoo! partners with WPP in ad deal
Yahoo! has signed an ad partnership deal with WPP which lets the latter firm buy ads on Yahoo!'s online ad exchange, writes Brand Republic. Under the initial deal WPP-owned GroupM and 24/7 Real Media will develop a proprietary media trading platform which will connect directly to Yahoo!'s Right Media Exchange. Long-term the two firms will work to build a WPP marketplace to give agencies and eventually outside publishers, direct access to advertising inventory.
Brand Republic: http://www.brandrepublic.com, 16/05/2008

Yahoo! UK: http://uk.yahoo.com

CBS buys CNET for $1.8bn
CBS is buying CNET Networks for $1.8bn (£0.91bn), writes Netimperative. The deal will propel CBS into the top 10 list of US websites with 54m unique monthly users and roughly global 200m users. CNET owns a stable of websites including ZDNet, GameSpot.com and TV.com. CBS is actively trying to grow its share of the online advertising market and expects the newly combined unit to reach revenues of $1bn (£508m) by 2010 or 2011.
From Netimperative: http://www.netimperative.com, 16/05/2008
CNET: http://www.cnet.com

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Trends

Almost half of all Brits will use social networks by 2012
A new report from Datamonitor estimates that nearly half the UK will be using social network sites by 2012, writes The Telegraph. The UK already has the highest levels of membership in Europe, with 9.6m Brits members of sites such as Facebook and MySpace. By 2012 Datamonitor expect this figure to have grown to over 27m.
France came second in the study with 8.9m users, followed by Germany with 8.6m. Each country is expected to grow to 21.3m and 21.7 by 2012 respectively. In total European user numbers are forecast to reach 104.7m (from 41.7m).
The Telegraph: http://www.telegraph.co.uk, 01/05/2008
Datamonitor: http://www.datamonitor.com

Americans spend the most time online
Americans spend more time on the internet than anyone else according to new data from Nielsen Online, writes The Telegraph. The average American spends nearly 28 hours/month online, way ahead of France and Spain on 20 and 18 hours respectively. The study also confirmed China's position as the leading online population: by February this year China had over 221m internet users, up from 137m at the start of 2007.
The Telegraph: http://www.telegraph.co.uk, 09/05/2008
Nielsen Online: http://www.nielsen-online.com

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

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Mobile

Mobile Web 2.0 services to generate $22.4bn by 2013

A study from Juniper Research predicts that global Mobile Web 2.0 services (including social networking, user generated content (UGC), mobile search and mobile instant messaging) will be worth $22.4bn (£11.39bn) by 2013, from $5.5bn (£2.8bn) in 2008, writes Telecoms.com. Social networking and UGC are predicted to drive revenues growing from $1.8bn (£915m) this year to $11.2bn (£5.69bn) in 2013 as adoption and availability of Location Based Services (LBS) becomes more widespread.
From Telecoms.com: http://www.telecoms.com, 15/05/2008
Juniper Research: http://www.juniperresearch.com

44% of mobile Brits on social networks
Nielsen Mobile has found that 44% of UK mobile phone subscribers are members of online social networks, writes Netimperative. 25% of this group now also use their mobiles for social-networking activities. Facebook comes top of mobile social networking sites, with visits from 557,000 UK users (9% of all UK mobile internet users).
From Netimperative: http://www.netimperative.com, 21/05/2008
Nielsen Mobile: http://www.nielsenmobile.com/

Monthly top ten French parent companies for March 2008

Source: Nielsen Online, UK, Q1 2008. E.g. On average 8.9 million Britons visited Facebook via their PC (=28% of all Britons online) each month in Q1, 2008. Facebook is also the most popular social network on the mobile.
Nielsen Mobile: http://www.nielsenmobile.com/

Most Popular UK Mobile Social Networking-related Activities

Source: Nielsen Mobile, Q1, 2008
E.g. 55% of Britons who use their mobile phone for social networking activities send messages/mail
Nielsen Mobile: http://www.nielsenmobile.com

Vodafone shops for mobile social network service
Vodafone has bought social networking and online management service ZYB for £25m. The service is targeted at mobile users and allows users to back-up and share their contact and calendar data. The service also allows PC-mobile communication using SMS, pictures and IM.
Vodafone's purchase follows its revelation that the top two searches on its mobile internet service are for social networking sites Facebook and Bebo. Facebook has also become the site most visited by Vodafone users. Vodafone subscribers are increasingly using their phones for e-mail, IM and social networking. Vodafone has recently changed its monthly price plans to include 500MB/month free internet access - a £7.50 saving.
From Brand Republic: http://www.brandrepublic.com, 19/05/2008
Vodafone: http://www.vodafone.co.uk

Microsoft launches mobile display ads
Microsoft has now enabled advertisers to run banner ads on Windows Live Messenger and Windows Live Hotmail, writes Netimperative. The firm has launched the ads in the US, France, Spain and the UK. Microsoft also intends to roll-out keyword advertising on Live Search Mobile outside of the US in the second half of this year.
From Netimperative: http://www.netimperative.com, 21/05/2008
Microsoft Live Search Mobile: http://livesearchmobile.com

New portal offers ad-funded mobile games
123play.com has launched offering over 40 mobile phone games for free in exchange for receiving mobile ad messages, writes Netimperative. The website has partnered with a number of games firms including THQ Wireless, RealArcade and Vivendi Games Mobile. Users are presented with an ad each time they launch a game on the site. If they don't click the game starts after a few seconds.
29% of users regularly play games on their mobiles according to data from M:Metrics.
From Netimperative: http://www.netimperative.com, 21/05/2008
123play.com: http://123play.com/

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Broadcasting

BBC iPlayer up 27% during April
1.4m people used the BBC's iPlayer on average each week during April as traffic rose 27%, writes Brand Republic.
Traffic has nearly doubled from January's weekly average of 750,000. Driven by "Doctor Who" and "The Apprentice" total monthly requests for April came to 21m downloads and streams - up from 17.2m in March and 11.2m in January. In total the service has now received over 75m requests for streams and downloads.43% of iPlayer users are aged between 35-54, 37% are aged between 16-34 and 21% are over-55.
In a further development Virgin Media has now fully implemented the iPlayer via its cable set-top box. Viewers accessing the iPlayer through Virgin will have direct full-screen TV access to all available programmes without the need for downloading.
From Brand Republic: http://www.brandrepublic.com, 20/05/2008
iPlayer: http://www.bbc.co.uk/iplayer

Digital radio audiences crosses 30% threshold
Here in the UK, the latest radio listenership figures (Rajar Q1 2008) give an upbeat tempo for the radio industry with listening up one percentage point in a year. 45m adults tune into the radio each week and 31% now use digital platforms to listen radio listening also grew to 31% of the UK. Interestingly, 3.2% of audiences are now through digital TV and 2.1% are online, suggesting convergence is happening slower in practice than many in the digital industry expected.

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Statistics

Monthly internet usage statistics for France, March 2008

Source: Nielsen/NetRatings Home/Work Panel monthly statistics
Nielsen Online: http://www.nielsen-online.com

Monthly top ten French parent companies for March 2008

Source: Nielsen/NetRatings Home/Work Panel monthly statistics
Nielsen Online: http://www.nielsen-online.com

Top 10 popular websites in the UK, April 2008

This list features the most popular websites based on UK Internet usage for April 2008, ranked by market share of visits across all Hitwise industries.
Source: Hitwise Datacentre, April 2008, based on market share of visits
Hitwise: http://www.hitwise.co.uk/datacenter

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