The monthly review of new research and developments in digital marketing
November 2008
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| Advertising |
Q3 online adspend revenues up 11% in US The latest online adspend figures from IAB US and PwC show that revenues grew 11% year-on-year to reach $5.87bn (£3.81bn) - the second-highest quarterly result ever achieved. Against Q2 though, revenues only grew 2%. For the first nine months of the year US online ad revenues totalled $17.3bn (£11.24bn) (from $15.2bn (£9.9bn) in 2007) - up 14% year on year. Randall Rothenberg, President and CEO of IAB US said: "Interactive advertising continues to be the most measurable and cost-effective way to reach consumers, and we see more and more marketers seeking to harness its power." IAB US: http://www.iab.net, 20/11/2008 Quarterly $ Revenue Growth Comparison - 2000-2008 YTD
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IAB US Key Note survey forecasts strong growth for online advertising |
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| Ecommerce |
Online retail set for 15% increase over Christmas The latest figures from the IMRG Capgemini e-Retail Sales Index forecast that online retail will grow 15% year-on-year during the fourth quarter to reach £13.16bn, writes Netimperative. The figure represents a £215 online spend for every person in the UK. However growth will be significantly lower than last year when online retail rose 54% from 2006. Monday 8th December is expected to be the busiest day for online shopping with sales of up to £320m predicted. Further research from JupiterResearch commissioned by LinkShare estimates that the average UK consumer will spend 40% more online than the average US consumer and will make 24% more of their purchases online. UK consumers are eight times more likely to carry out online research across multiple sites before buying online and are also 13% more likely to be frequent online shoppers than US internet users. According to the annual Deloitte Christmas Retail Survey which looks at total retail spending, British shoppers are expected to spend on average £655 in total this Christmas - equivalent to 7% less than last year. However 19% of consumers still intend to spend more. From Netimperative: http://www.netimperative.com, 10/11/2008 IMRG: http://www.imrg.org
Online sales in US to grow 7.2% during 2008 US retail ecommerce sales, 2007-2012 (billions and % change)
Source: eMarketer |
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| Companies |
Google uses AdWords model to profit from YouTube GGoogle is bringing in a variation of its AdWords model to YouTube in an effort to raise revenues from the leading online video site, writes The Financial Times. The new YouTube Sponsored Video service will allow YouTube users to promote their videos in a special sponsored video section. Users can then bid on keywords to promote their sponsored videos, paying for them on a cost-per-click basis. The service has no minimum spending requirement and users can specify a daily budget. If the service takes off Google can look forward to a whole new search-based profit stream: recent figures from comScore found that YouTube received more search queries in September than any other website other than Google and Yahoo!. YouTube is also going to start offering ad-supported full-length feature films. The site has announced a new deal with studio Metro-Goldwyn-Mayer (MGM), which will see a number of branded content channels offering free-to-watch films and TV shows including "Bulletproof Monk" and "The Magnificent Seven". The news follows the deal announced with CBS reported in last month's Digital Intelligence. From The Financial Times: http://www.ft.com, 13/11/2008 YouTube: http://www.youtube.com
MySpace to generate revenues from copyrighted content |
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| Trends |
UK now a nation of web-obsessed surfers 67% of Brits now think that internet access is more vital than access to a car (54%) or washing machine (58%), writes Netimperative. The results, taken from new research by YouGov on behalf of AMD also found that 57% of respondents use social networking sites and that 56% would rather shop online than go shopping on the high street at Christmas (54%) or socialise with friends (49%). 78% of Brits have also uploaded digital photos, while 75% have gone online to watch YouTube videos (88% of men against 63% of women). In general, men prefer content (71% have downloaded music against 62% of women), while women prefer communication (53% use instant messenger against 47% of men). From Netimperative: http://www.netimperative.com, 19/11/2008 AMD: http://www.amd.com Over 14m UK internet users visited a blog during August A selection of leading blog platforms ranked by total UK unique visitors (000) *
Age 15+ - Home & Work Locations, August 2008 A selection of leading individual blogs ranked by total UK unique visitors (000)*
Age 15+ - Home & Work Locations, August 2008 |
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| Mobile |
"Ads for calls": a new culture emerging in mobile The latest wave of research into consumer attitudes for mobile advertising is confirming consumer acceptance of lower call charges in exchange for exposure to advertising, writes Marketing Vox. What began as a youth behaviour appears to be spreading with two-thirds (61%) of mobile users willing to view advertising on their handsets in exchange for discounts off calls. The research by Transverse and iGR reflects a changing culture in consumer expectations of access. From Marketing Vox: http://www.marketingvox.com, 20/11/2008 Transverse: http://www.gotransverse.com Would you be willing to view advertisements on your mobile in exchange for an incentive?
Source: Transverse Under what conditions would you be willing to view these ads?
Source: Transverse
Mobile internet usage grows 25% in UK
64% of UK consumers have entered contests with their mobiles |
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| Broadcasting |
UK tops US and France for digital TV The third International Communications Market Report from Ofcom has found that the UK has the highest penetration of digital TV services of all the larger countries surveyed, with 86% of British households now using digital services on their main TV sets (up 9% on last year), writes Brand Republic. The US and France follow with 70% and 66% respectively. The study has also revealed that ad revenues are no longer the main source of commercial TV funding as a result of the growing use of pay-TV services and Digital Video Recorders (DVRs). Global TV advertising generated 49% of revenues (£81bn) - a decrease of 50% on 2007. However, subscription revenues rose 2% to 43% to reach £71bn. The UK also leads Europe in the number of High-definition (HD) enabled households, with 700,000 (6%) - higher than the combined figure for France, Germany and Italy (500,000). The US has the highest number of households with HD subscriptions at 6m (6.2%) though Canada leads on penetration at 17.6% (with 2m households). British consumers also come first for DVR use, with 30% using the devices compared to 21% in both Italy and Canada, and 20% in the US. According to the report the UK benefits from competitive pricing bundles with a typical triple-play package (with landline, four mobile phones, pay-TV and broadband access) costing £104/month compared to £114 in Italy and £131 in France. From Brand Republic: http://www.brandrepublic.com, 20/11/2008 Ofcom: http://www.ofcom.org.uk BBC to broadcast BBC1 and BBC2 live online |
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| Statistics |
Monthly internet usage statistics for France, October 2008
Source: Nielsen/NetRatings Home/Work Panel monthly statistics Monthly top ten French parent companies for October 2008
Source: Nielsen/NetRatings Home/Work Panel monthly statistics Top 10 popular websites in the UK, October 2008
This list features the most popular websites based on
UK Internet usage for October 2008, ranked by market share of visits
across all Hitwise industries. Worldwide Active Internet Home Users, September 2008
Source: Nielsen Online, 2008 |
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