Weekly Digital News Roundup: September 26-30
Online Ad Dollars Keep Rising, But Interest in Brand Spend is Murky
- Despite growing fears about the economy and the impact on ad spending in general during the past several months, online ad dollars jumped 23.2 percent to a yet another record $14.9 billion in the first half of 2011, according to figures released today by the Interactive Advertising Bureau and PricewaterhouseCoopers.
- While online is widely expected to be growing anywhere from 16 percent to over 20 percent, there had been a good reason to expect that growth rates would start to slow a little bit this year. But those fears so far seem unfounded—at least until the end of June 2011, which was still a period of considerable hope that the economy was improving.
- Furthermore, the rise is notable, if only because last year represented such a strong comeback for the ad market. The rate of growth more than doubled year-over-year, as last year’s first-half ad revenues of $12.1 billion had represented an 11.3 percent increase over 2009.
Twitter Ad Revenues to Near $400 Million by 2013
- Twitter will earn $139.5 million in global ad revenues this year, up 210% from $45 million in 2010, according to a new forecast from eMarketer. By 2013, eMarketer estimates worldwide ad revenues at Twitter will reach nearly $400 million.
- “Since their debut in April 2010, Twitter’s Promoted Products have proven successful in the US,” said eMarketer principal analyst Debra Aho Williamson. “Marketers have shown solid engagement rates with Twitter advertising—in some cases better than those on Facebook—despite Twitter’s relatively smaller audience.”
- Ninety-six percent of Twitter’s ad revenues will come from the US this year, eMarketer predicts, falling to 88% by 2013 when ad dollars from elsewhere in the world will make up a more substantial revenue stream.
Advanced Avertising: Microsoft’s Porter Says Industry is “Ripe” for Such Methodology
- With the economy and the stock market in a constant state of flux, marketers may become wary of deviating from the standard advertising methods. But David Porter, Microsoft’s video advertising evangelist, says that now is the time to push these advanced methods.
- One of the things Porter explained that Microsoft does is crowd-source from more than the standard demographics, instead targeting viewers based on lifestyle, behavior, and purchase-based activity. Porter argues that this method helps them find “pockets of viewers in unsuspecting places,” thus the commercials are seen by a higher viewing percentage of the target audience.
- Porter argued that there will always be the primetime, mass-appeal content on TV, but what goes overlooked is the leftovers. “We’ll always have the premium, primetime content,” said Porter. “But then there’s all the rest of the content on TV. You have to decide,” said Porter. “Are you looking for scale, or are you looking for one-to-one?”
Google Wallet’s Long-Term Strategy for Advertisers
- Google has begun to extend its advertising business offline. Wallet sits at the cornerstone of this long-term strategy to close the loop between offline and online advertising, as well as help media buyers make more strategic decisions through attribution modeling.
- The company plans to achieve this by having the ability to analyze offline sales similar to online, Merchants have begun to put a heavy focus on the “loyal” consumers, finding those who continually return to the Web sites or physical stores to purchase products and services. Google will work to analyze the number of impressions, clicks, and coupons saved to Wallets generated.
- Google offers options to drive Web site and in-store traffic, but the key remains finding the most valuable consumers through loyalty and rewards programs.