Weekly Digital News Roundup: January 7 – 11
- Techcrunch reports that Facebook is making quick progress in growing its mobile advertising business, a platform in which investors were initially hesitant to put their money nto. Based on data from major ad platform Kenshoo, 20% of all Facebook ad spending goes to mobile – and with good reason, because studies are beginning to show that Facebook mobile ads work and could keep the company successful.
- Kenshoo’s data shows that Facebook mobile ads are currently priced at a 70% premium over desktop ads, which makes sense because a single mobile ad is more likely to make an impression on users. And with 71% of Facebook’s smartphone ad spend going to Android, Google’s operating system may become a leading portal to the social network.
- “As advertisers warm up to the mobile medium, Facebook needs to turn its attention to user reactions,” writes Techcrunch’s Josh Constine. “The feed is starting to get a bit more cluttered with ads than a few months ago.” While mobile should definitely be a top priority for Facebook, balancing user experience with the amount of ads on a single screen should also be addressed – a fact that may inspire yet another profile redesign or algorithm update in the coming months.
Digital Ad Spending to Hit $118.4 Billion in 2013
- eMarketer reports that digital ad spending passed the $100 billion mark for the first time last year, and will increase by a further 15.1% in 2013 to $118.4 billion worldwide. This means that worldwide digital ad spending levels are 21.7% of the total amount spent on ads in media this year.
- Unsurprisingly, North America accounts for the greatest share of digital ad spending and was at 39% by the end of 2012. But the emergence of markets in Asia-Pacific and Latin America are expected to cause North America to lose its share slightly, dipping to 36.7% by 2016.
- eMarketer speculates that the fastest growth in spending will come from emerging markets in Indonesia, India and Mexico. Also worth noting: North America and Western Europe boast the highest regional levels of digital ad spending per internet user, at $168 and $112 this year, respectively.
France Rejects Internet Provider’s Plan to Block Online Ads
- European Internet service provider Free recently moved to block online advertisements altogether. But in a precedent-setting test case for Europe, the French government denied Free by stating that the company had no right to edit Internet content for users.
- The New York Times’ Eric Pfanner writes, “The dispute has turned into a gauge of how France, and perhaps the rest of Europe, will mediate a struggle between telecommunications providers against Internet companies like Google, which generate billions of dollars in revenue from traffic that travels freely on their networks.” European telecom companies want a share of that ad money to “finance investments in faster broadband networks,” but until now, regulators have taken a laissez-faire approach to the topic.
- French minister for the digital economy Fleur Pellerin said that she persuaded Free to restore full access because “an Internet service provider cannot unilaterally implement such blocking…This kind of blocking is inconsistent with a free and open Internet, to which I am very attached.” In light of this, French consumer organization UFC-Que Choisir is campaigning for net neutrality protection legislation.