The monthly review of new research and developments in digital marketing
October 2007
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| Advertising |
US online adspend: new records set as net breaks $5bn a quarter The latest numbers for the US from PricewaterhouseCoopers (PwC) and the IAB confirm that the world's largest online ad market is still enjoying the largest annual growth in real terms. Spend surged ahead by 25.4%, crossing the $5bn (£2.46bn) mark in a single quarter. US Internet advertising revenues for the first six months of 2007 were nearly $10bn (£4.92), setting yet another new record and were almost 27% up on the first half of 2006. Spend reached nearly $5.1bn (£2.50bn) in the second quarter of 2007. The growth was propelled not just by search engines (which increased their share of online adspend to 41%) but also by the wider consumer advertising sector. Classifieds continued to swell, but they did lose share within online to the Rich Media and Video formats which now account for 8% of all online advertising. Read more analysis of these figures: www.digitalstrategyconsulting.com. IAB US: http://www.iab.net, 05/10/2007
Source: IAB US, PricewaterhouseCoopers 2007
UK online ad spend: biggest leap yet
With the UK market acting as a key indicator for European online adspend behaviour, the results will boost stock prices for Continental firms looking for models of their own country's digital economy several years down the line. The research is particularly accurate because it relies on publisher revenue declarations (under non-disclosure agreements to PricewaterhouseCoopers), and is one of the only markets in the world to include a revenue declaration from Google. Classifieds set to beat display:
For further analysis from Digital on these results go to http://www.digitalstrategyconsulting.com. |
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| Companies |
24/7 Real Media launch customer re-targeting tool 24/7 Real Media have launched a new tool which allows advertisers to target potential customers with personalised display ads, writes Netimperative. The new Search Re-Targeting service serves users who click on search engine text ads with customised display advertising on any website in the Global Web Alliance network. Display ads can be modified in relation to the original keyword a user searched for and can also relate to the purchase stage reached by a user. The system can be used for example to keep potential customers interested in potential purchases by offering discounts a month after an original search had been made. Foreign currency firm Interchange FX have carried out the first live UK trial of the system, by comparing two identical display ad campaigns. The campaign with Search Re-targeting enabled saw click-through rates increase eight times. 24/7 Real Media's Global Web Alliance network includes over 950 sites and serves ads to 121m unique users worldwide. From Netimperative: http://www.netimperative.com, 14/09/2007 24/7 Real Media: www.247realmedia.com
Google launches mobile ad platform
Blyk offers free calls in exchange for advertising
Facebook overtakes MySpace to become UK's most popular social network
Most popular social networks in the UK - August 2007 - and
growth across 2007
E.g.
In August 2007, 6.5 million Britons (20% of all active Britons online)
visited Facebook; 541% more than did so in December 2006
Fastest growing social networks* in the UK across 2007
*Minimum requirement of 125,000 Unique Visitors in August 2007. Most engaging social networks by total time - August 2007
E.g.
Britons spent 991 million minutes in total on the Facebook. The
average visitor to Second Life spent 5 hours 29 minutes there during
August 2007 |
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| Trends |
Brits continue to spend more time online New data from Point Topic shows that the British are staying online for longer, writes ENN. 86.6% of home internet users now spend at least 6 hours online each week, up from 83% at the end of last year (and 50% at the end of 2005). Amazingly 5% of those polled claim to spend over 80 hours a week online. According to the research 90% of broadband users go online to use e-mail and 60% to use auction sites such as eBay. In addition 40% of broadband users also download music, with 16% going online to watch TV or streaming video. 70% of all respondents also shop online (from 65% in 2006). From ENN: http://www.electricnews.net, 27/09/2007 Point Topic: http://www.point-topic.com |
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| Industry focus: Content goes free |
Our special focus this month examines how both the newspaper and music sectors have both made moves away from strict subscription models towards other income-generating strategies. For the most part, online consumers remain unconvinced by attempts to make them pay for content online. The very nature of the internet and its global explosion during the last decade has meant that users could normally find what they wanted for free elsewhere with only a few clicks of a mouse. Studios, record labels and publishers have been among those groups who have resisted this change but a number of stories this month suggest that content producers have finally realised that they can't keep their heads in the sand indefinitely. The internet has irrevocably changed the relationship between media providers and consumers. However it has also created an unlimited supply of niche markets and the fastest growing advertising sector of the past decade.
New York Times abandons subscriptions
FT.com opens up content for free
Murdoch plans to make Wall Street Journal free
Radiohead let fans decide cost of new album
Charlatans release music for free through Xfm |
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| Mobile |
Mobile ad spending to grow 120% during the next year The latest Jack Myers Media Business Report forecasts that global mobile advertising will grow 120% during 2008 to reach $1.1bn (from $500m - £246m), writes ClickZ. The report expects similar growth during 2009 making the mobile ad market worth $2.4bn (£1.18bn) - roughly 1% of total global adspend. Online advertising, according to the report, will grow 20% during 2007, reaching $16.7bn (£8.21bn). This is forecast to rise a further 24% in 2008 and 28.5% in 2009. From ClickZ: http://www.clickz.com, 18/09/2007 Jack Myers Media Village: www.mediavillage.com |
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| Statistics |
Monthly internet usage statistics for Germany, October 2007
Source: Nielsen/NetRatings Home/Work Panel monthly statistics Monthly top ten German parent companies for October 2007
Source: Nielsen/NetRatings Home/Work Panel monthly statistics Top 10 popular websites in the UK, August 2007
This list features the most popular websites based on
UK Internet usage for August 2007, ranked by market share of visits
across all Hitwise industries.
Source: Hitwise Datacentre, August 2007, based on market share of visits |
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