European Display Spend Upto €5.8 Billion, As Germany Remains The Biggest Market In Europe


There is very little data on the European display market as a whole – except of course for the excellent IAB Europe AdEx report. It details all the markets in Europe across the various channel. The survey runs from mid-2010 to mid-2011 so these figures are pretty much up-to-date. The headline number for display in Europe is now €5.8 Billion – a 21.1% growth on last year’s figures. It’s difficult to acertain how much traditional display has really grown, as there is no break out numbers for Facebook. I think the IAB will have to do this next year – so we can a real feel for how the different channels are faring in terms of media spend. I have produced a chart of the top performing countries in the market. The UK and Germany are way out ahead, clocking in at just over 1 billion euro each. France comes in at third – closely followed by Italy. It is surprising that Italy never really registers on anyone’s radar eventhough its display market is only one hundred million less than France. ExchangeWire will do more eye candy charts of the regional markets, like CEE and Scandinavia, next week.


European Display Spend – Top Performers










Note: All figures are in the millions of euros

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First Google+ Statistics & Facts

Inforgaphics_google_plus

So, if you are like me, and begged for a Google+ account invite from anyone who might have had a spare one 5 minutes after it launched, you’re probably also like me, who hasn’t logged into Google+ for over a month, and has not a single use for that service… well, not yet anyway!

So, here is probably the reason why! The first infographic round up of stats from Google+ shows that 72% of the total 26 million users are male (not sure that the “other” stat is right!!) with the platform costing over half a billion dollars to make, and most importantly, the user job types… well that are just like you and I, tech and creative people, with almost no extension into any other industry.

via : digitalbuzz.com


Ad Expenditures Up

Total US advertising expenditures in the first six months of 2011 increased 3.2% from a year ago and finished the period at $71.5 billion, according to data released in September 2011 by Kantar Media. Spending growth eased slightly during the second quarter and was up 2.8% compared to last year.

Internet media accounted for more than one-half of the dollar gain in total ad expenditures during the first six months of the year (see more about digital advertising at MarketingVox). Within the internet media category, display spending jumpd 12.9% and search investments rose 8.6%, as Kantar analysis indicates each benefited from a surge of money from the travel, local service and insurance categories.

Outdoor advertising had the second-highest rate of growth (11.8%), and was paced by what Kantar determined were healthy increases from local service businesses, banks and TV media outlets. Consumer Magazine ad spending pulled back in Q2 and finished the half year period up 4.0 percent. Prescription drug advertising in magazines picked up during the spring months but these gains were neutralized by cutbacks from auto manufacturers.

Cable Spend Up, Network Spend Down

Within the TV sector, which experienced 1.8% growth overall, expenditures on cable networks increased 11.8% during the first half of the year while network TV spending fell 7.6 percent. Kantar analysis suggests one factor shaping these results was the shift of BCS college football bowl games and NCAA Men’s Basketball Tournament programming from broadcast networks to cable, producing a large, one-time transfer of ad dollars. Supplementing this was a reallocation of TV budgets from network to cable within the prescription drug, financial service and consumer package goods categories.

Syndication TV expenditures surged 18.5%, reflecting more hours of monitored programming and larger budgets from auto insurers and consumer package goods marketers. Spanish language TV had a 1.7% increase, while outlays on spot TV fell by 0.9 percent, reflecting weakness from the telecom category and a slowdown in Q2 spending by auto manufacturers.

Top 10 Advertisers Spend Slightly Less

Spending among the 10 largest advertisers in the first six months of 2011 was about $8,.2 billion, a 0.5% decrease compared to a year ago. Procter & Gamble maintained its top-ranked position with spending of almost $1.4 billion, down 7.8%. Kantar says the company has been shifting budgets into Spanish language media and internet display at the expense of consumer magazines, network TV and cable TV.

AT&T was the second-largest advertiser for the half-year period with expenditures of about $1.1 billion, a decline of 2.6%. Since the March 2011 announcement of its agreement to purchase T-Mobile, AT&T ad spending has slowed sharply. At competitor Verizon Communications, first-half ad budgets were $808.7 million, a decrease of 22.5% and the biggest percentage decline among the top 10 advertisers.

Meanwhile, Chrysler Group hiked ad budgets by 58.7% to $621.1 million, the largest rate of increase among the top 10. Kantar analysis indicates spending was bolstered by several marketing introductions for new and redesigned models. Fellow automaker General Motors reduced its six-month expenditures by 13.3%, to $924.6 million. The proportion of GM’s ad budget earmarked towards passenger cars, as opposed to SUVs and pickups trucks, continues to expand and is now at its highest level in more than four years.

L’Oreal investments rose 25.% to $626.3 million. Comcast (+35.1% to $884.5 million) and Time Warner (+6.7% to $618.2 million) also upped their ad budgets. Results for both companies were driven by their movie studio divisions.


Spending in 10 Largest Categories Grows 5%

kantar-top-10-ad-categories-1st-half-11-sep-11.JPGExpenditures for the ten largest categories grew 4.8% in the first half of 2011 to almost $41 billion. Automotive was the top category with almost $6.9 billion of spending in the six-month period, up 9.3%.

Meanwhile, the local services category had the strongest rate of growth among the top 10 with a 10% increase to almost $4.9 billion. Kantar says this performance is consistent with the category’s weighting towards mid-sized advertisers, a segment that has been spending robustly.

Escalating competition among credit card marketers was the catalyst for a 5.6% jump in financial services expenditures, to $4.6 billion. The travel & tourism category entered the top 10 with outlays of $2.9 billion (up 6%) as marketers launched campaigns targeting the peak spring and summer travel seasons.

Other Findings

  • AT&T was the top TV advertiser, spending $789.4 million (down 3.7%).
  • Progressive Corp. was the top internet advertiser, spending $164.7 million (up 104.6%).
  • News Corp. was the top newspaper advertiser, spending $285.4 million (down 22.8%).

Nielsen: Global Ad Spend Rises 9% in Q1 ‘11

Global advertising spend rose 8.8% year-over-year in Q1 2011 to total $118 billion USD based on published rate cards, according to Nielsen Global AdView Pulse data. Nielsen analysis indicates heavier TV spending, as well as increased investment in the Latin American and Asian consumer markets, drove growth.

via : http://www.marketingcharts.com/

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Mobile Ads Six Times as Effective as Standard Banners - Channel, location, size and placement all matter for display ads !

The telecom industry is one of the biggest spenders on online advertising. Between 2010 and 2011, telecom ad spending climbed by 7% to $3.62 billion and eMarketer estimates the industry will spend close to $4.6 billion on online ads by 2015. New research suggests the industry has unlocked some key findings in order to achieve high user engagement with its display ads.

Perhaps due to the substantial resources telecom marketers are devoting to online advertising, the industry is enjoying higher-than-average user engagement with its ads. Research from ad solution provider MediaMind (formerly Eyeblaster) suggests that ad placement, banner sizes and the time in which users view ads have an impact on engagement metrics.

According to MediaMind, for every 1 million impressions, web users “dwell” on 70,000 telecom ads and click on 1,800. MediaMind defines dwell rate as impressions that are intentionally engaged with by touch, interaction or click, and by this metric the telecom vertical outpaces nearly all other categories thanks to a dwell rate of 7.5%. Telecom is tied for second-highest vertical in terms of engagement, and trails only the sports category.

Dwell Rate for Rich Media Ads Worldwide, by Industry, Q2 2010-Q1 2011

MediaMind’s research suggests that ad placement, size and format all influence a consumer’s engagement with an ad. For telecom, MediaMind found that ads work best when placed on pages in the travel, technology, homepage, news, entertainment and finance categories. For rich media ads, IM and lifestyle placements were especially effective. Moreover, larger banner ads tended to perform better than smaller ones, and 300x600 and 300x250 were the best performing banner sizes.

MediaMind also found that users are more likely to convert after the first few times they view an ad. After the third impression, conversion rates plummet. Research also consistently shows that users convert at a much higher frequency after viewing mobile ads. Mobile ads for telecom achieve six times the performance of browser-based standard banners, according to MediaMind.

Clickthrough Rate for Telecom Industry Mobile vs. Online Banner Ads Worldwide, Q2 2010-Q1 2011

Although engagement rates for telecom are best-in-class, analysis of DoubleClick data by comScore indicates that clickthrough rates for telecom rich media ads are not quite as noteworthy. According to comScore, telecom CTRs come in at around 0.07%, compared to 0.15% for the automotive industry, the segment with the highest CTRs.

Clickthrough Rate for US Rich Media Ads, by Industry , Aug 2011

Examination of telecom display ads reveals that factors such as placement, format, size and frequency do influence a user’s decision to engage or convert. Marketers from all industries should make note of telecom’s findings in order to create highly relevant ads that consumers will want to engage with.

via : emarketer.com

The Digital World in 2020

“Prediction is difficult, especially about the future,” is a quote attributed to people as diverse as the physicist Niels Bohr and baseball legendYogi Berra.

It is, of course, a mangling of the English language, but resonates because it’s true. Prognostication is a tricky business, usually best left to carnival hucksters and high priced Wall Street analysts.

However, despite the pitfalls, we can make some reasonable assumptions.  Some important digital trends have highly foreseeable outcomes. We have a good idea about what limits will be hit, problems that will follow and some concrete notions about how they will be solved.  The future exists, it just hasn’t arrived yet.

The Emergent Near Future

As I wrote in an earlier post, our technological near future is driven by four major forces:

1. The Cloud: In the PC era, innovation was driven by Moore’s Law.  Computing processing speeds doubled every eighteen months and that determined what we could get our hardware to do.

These days, however, Kryder’s Law, which projects a doubling in storage capacity every year and Nielsen’s Law which sets the pace for bandwidth capacity at every 21 months, are more determinant.  We are now able to store huge amounts of data and access it from anywhere and our ability to do so is increasing rapidly.

2. Evolution of Client Side Scripting: In the early days, the Web was merely a bunch of static electronic pages linked together.  You could access documents, but there was no functionality.

Then came PHP, which made pages dynamic (i.e. they changed).  Further enhancements such as JavaScriptjQuery and Flash made it possible actually manipulate the data on the page and watch video.

Today, mobile apps  and HTML5 are enabling entirely new experiences.  Not surprisingly, that’s where a lot of innovation efforts are going.

3. Linked Data: As early as the late 90’s, Tim Berners-Lee recognized a shortcoming of the Web he created.  While it helped give much greater access to the world’s information, that same information was still trapped inside of incompatible databases.  So he invented a new, semantic web to unify them.

A decade later, linked data is finally gaining traction and is becoming an important technology driver in it’s own right.

4. The Mobile Explosion:  As my agency, Moxie, described in a recent report we are increasingly operating in a post-PC computing environment.  We now carry around multiple connected devices, all of which have greater computing power than our office desktops did a decade ago.

Those four trends are what drive innovation today and the stuff coming online now, such as augmented reality, app driven digital TV and mobile sharing sites like Instagramcombine two or more of them to create something truly new and exciting.

However, around 2020, all the rules will change and we will enter the realm of the unknown.  What exactly happens then is anybody’s guess, but there are already early signs of what’s to come.

Moore’s Law Hits a Speed Bump

As mentioned above, Moore’s law predicts that processing speed doubles every eighteen months.  It’s driven by how many transistors engineers can squeeze into a single integrated circuit.  What happens when they become as small as a single atom?  The laws of physics will forbid us to make them any smaller.

That will happen by the end of this decade and scientists are already working on a solution to the problem called quantum computing.  The idea is to no longer use the binary chains of ones and zeroes (called bits) that our computers run on now, but to encode information in qubits, basically the same idea transferred to quantum states.

It seems fantastical, but the future is closer than you might think.  This past spring,Lockhead bought the first quantum computer.  It’s still early days, but further developments are sure to follow.

E-Commerce in Peril

Vastly increased processing speeds are exciting, but like any advancement they create their own problems.  As I wrote in a post a few years back, quantum computing will make existing encryption methods obsolete.

Think about that for a minute.  All of our electronic transactions need to be encrypted.  If they weren’t, we certainly wouldn’t be willing to put our financial information online. Without secure encryption, e-commerce, along with many of our national security and diplomatic structures, would grind to a screeching halt.

Perhaps not surprisingly, scientists intend to solve the problem in much the same way as they intend to solve our Moore’s Law problem.  There are several efforts underway to develop forms of quantum cryptography, based on the surreal ERP paradox which will keep communications secure.

There’s Plenty of Computers at the Bottom

In the late winter of 1959, a young scientist named Richard Feynman, got up to address the American Physical Society.  His lecture was not the usual fare of decaying sub-atomic particles and obscure Greek letter strewn formulas.  Nevertheless, it promised to become one of the most significant and consequential scientific talks ever.

It was entitled There’s Plenty of Room at the Bottom and it is an absolute delight.  In that room a half century ago, speaking at roughly a middle school level, Feynman introduced the world to nanotechnology.  Today, the technology is used to create new materials such as super-strong carbon structures called fullerenes.

The next step is nanocomputing.  We will create devices out of microscopic components and there will be computers as small as a grain of sand.  In the future, we will literally be able to spray on information technology (and possibly, in the case of cosmetics, rub on). This isn’t science fiction, as this article shows, the effort is already well underway.

A New Organic Evolution in the Digital Space

In 1945, in connection with the development of the EDVAC, the legendary John von Neumann published a report that described a computer architecture with a central processing unit and a memory unit to store programs.  It became known as the Von Neumann architecture and remains the dominant design in computers to this day.

Ironically, around the same time he developed cellular automata, which are mathematical constructs that mimic biological systems.  Researchers today are using cellular automata and related concepts to develop a new type of organic computing architecture which can self organize.

The idea is based on the realization that when we have computers that are not only vastly more powerful, but also vastly smaller, more connected and ubiquitous, present day architecture will be unable to manage the complexity.  In effect, programmers will develop rules by which computers will evolve the ability to optimize tasks themselves.

The Quirky Digital Paradigm

We are truly still at the dawn of the digital age, with more to come than we can possibly fathom.  However, we can take some solace from looking at how widely off the mark previous visions of the future have been.

In the past, we were given fantasies of refrigerators ordering our milk for us and people marching in silver spandex suits down antiseptic hallways.  None of that has come to pass. In fact, the digerati tend to be quirky, retro and organic. The reality is that we’ve used the digital technology we possess to give us more control.

The enhanced compression and storage of the cloud give us vastly more entertainment choices.  Semantic technologies are freeing data to be used more efficiently.  Mobile devices have freed us from our desks.  Computers crunch the numbers so that we can concentrate on the math and logic.

Everywhere you look, we are deploying digital technology is to express our individuality, use our resources more wisely and do what we want, where and when we want to do it. So while exactly what 2020 will look like remains anybody’s guess, it will truly be a world we make in our own image.

- By Greg via : http://www.digitaltonto.com/

Here We Go : Advertisers Will Spend $500 Billion in 2011 !

The global advertising industry has rebounded more quickly from the worldwide recession than eMarketer and other analysts had anticipated. According to updated eMarketer data published in June, advertisers will spend nearly $500 billion in 2011—a growth rate of 4.5%. Online ad expenditures of $80.2 billion are fueling the recovery, with internet ad spending increasing 17.2% this year.