Weekly Digital News Roundup: November 2-6
Apple Has Doubled Its Ad Budget To $1 Billion A Year
- As Business Insider reports, since 2009, Apple has doubled its ad budget, hitting $1 billion in fiscal 2012, the company said in its annual report. Back in 2009, Apple’s ad budget was a “mere” $501 million. Apple’s ads are created by ad agency TBWA/Media Arts Lab
- The culprits are the iPhone (launched in 2007) and the iPad (launched in 2010). Apple’s ad budget was rising only marginally from a base of $467 million in 2007 until 2010. That year, Apple began a series of new product launches in both the iPhone and iPad lines that has continued unabated, most recently with iPhone 5 and iPad Mini, both coming in the last few weeks.
- The company is not leaning more heavily on ads to shift product, however. Because sales of iPhones and iPads have been astronomical, the proportion of expenses Apple burned on sales, general and admin costs actually declined in 2012 to 6% of revenues, from 7% in 2011. In other words, that $1 billion arsenal is actually more efficient at driving each dollar sale than it was previously.
Brands Get Users Sharing with Social Video
- The power of social video represents an evolution in digital advertising, according to a new eMarketer report. Marketers are starting to move past the interruptive model of the 15- or 30-second pre-roll ad and toward a broader strategy that includes longer opt-in videos with built-in sharing capabilities. This branded content is designed to be consumed and shared on the social web, driving earned media and raising the potential for viral success.
- David Segura, CEO of social video company Giant Media, said, “The difference between this and the previous online video model, which revolved around pre-roll, is you move from looking at the media to focusing on consumer behavior … So every form of advertising becomes an advertorial that accomplishes the brand’s goal but at the same time has a realistic chance of exciting the consumer to share content.”
- Most social video campaigns use YouTube, Facebook and other sharing destinations as anchor points, and provide sharing buttons for users to disseminate clips through other means, including Twitter, Google+, Pinterest, email contact lists and embed codes.
- According to eMarketer, the mobile ad market is headed up fast, and marketers and publishers alike are paying attention. Ad sellers are offering more inventory than ever, and potential buyers are knocking at the gates. According to research from local display ad platform PaperG, which polled US ad sales executives, nearly 86% of publishers will offer mobile display ad inventory within the next three months. That’s less than 10 percentage points behind the number that will offer online display ads.
- Interest in mobile ads among potential buyers was similarly huge. Nearly 95% of ad sellers said their clients were interested in buying mobile display ads. eMarketer estimates that US advertisers will spend over $2.6 billion on mobile advertising this year, up 80% from 2011. More than $1.1 billion will go toward mobile display alone, slightly smaller than the mobile search market.