A recent study published by ComScore and its research partner dunnhumbyUSA, shows that consistent online advertising can actually lift retail sales in the CPG industry by 9% over a 3 months period and contribute more to brand building than TV ads (+8% over a 12 months period according to an Information Resources, Inc. report.).
“These early results confirm the ability of online advertising to successfully build retail sales of [consumer packaged goods] brands on par with the impact of television advertising. It is likely that the more precise targeting ability of the Internet – especially in terms of accurately reaching the desired demographic segment – is a key reason for its effectiveness. That is meaningful in and of itself, but when you take into account the fact that online advertising is generally less costly than television, these results take on even greater significance,” said Gian Fulgoni, Executive Chairman of comScore
Let me know how does your marketing-mix looks for the remaining part of 2009, you may bend it to more of the web?
It’s been a while since we didn’t bend back on numbers. Here are some good news on the online ad spend for 2007, coming from emarketer.com, that I wanted to share with you. If you don’t want to read it all, here is a quick summary:
- eMarketer is raising its 2007 forecast from $19.5 billion to $21.7 billion i.e. from 18.9% to 28.6% growth closer to the 30% growth seen for the last 3 years
- they even see 2008 stronger with 30% growth to a total $28.8 billion, thanks to the US presidential elections
- 2009 will slow down a bit to 18.1%,
but hey they’ve been pessimistic for 2007 so let’s wait and see. Here is the quote I like most:
” Online advertising as a share of the total media budget will surpass radio this year, eMarketer said, and top 10% next year.” — Advertising Age, June 2007
Come on, one last to hit the road: WW user-generated content sites will earn $1.6 billion in ad revenue for 2007 moving to $8.2 billion in 2011, predicts eMarketer. Marketing 2.0 finally makes money, isn’t it?
Just a very quick one fellow marketers, I found out this number on AdvertisingAge and could not resist but share it with you. Widgets reached about 21% of the worldwide internet audience in April, ComScore — who started to track widgets usage accross the web — found. About 40% of widget use, or 81 million of those people, came from North America. Slide.com (a cool slide sharing site) had the largest reach, followed by RockYou, Picturetrail and Photobucket, all photo sharing sites.
ComScore defines widgets as shockwave data files embedded into a site’s HTML code.
“The reach that widgets have is going to surprise a lot of people,” said Max Levchin, founder and CEO of Slide. “What advertisers are ultimately interested in is what are people looking at, not what page.”
Widget advertising! So coool.
Interestingly enough, not only do they acquire one of the most powerful web media buyer but they also acquire web design services through its Avenue A/Razorfish division.
One thing is sure, as I was wondering after Google’s DoubleClick acquisition in “Would you have Google as your middleman”
, Microsoft had an answer to the Internet titan move. Sad news for web ad agencies, competition and battleground have changed in your world within a few weeks (see chart). Read this Microsoft Storms Madison Avenue
article in AdvertisingAge for more on the earthquake.
But folks, let me enjoy my vacation fully, I’ll be back in June.
First of all thanks to those of you asking me to write more often, much appreciated. One of the reason I didn’t write too much recently lies in the fact that I started to work in a new company and I’m overwhelmed with new information to absorb and categorize. I wish I had a Wiki built in my brain, so everyone could contribute. But that would be brain 2.0 isn’t it?
So fellow marketers, I’ll be getting back to a better post frequency as soon as possible and of course I’ll let you know rapidly what company decided to have me on board. The one thing I can tell you at this point is that I’m back to the Enterprise Application Software gang. It’s going to rock there and I’ll be writing about it in the near future.
I just wanted to drive your attention to this interesting joint Intel and Google announcement I read in Advertising Age: Intel, Google Join Forces for ‘Virtual Marketing Storefront’. Let’s get rid of the bells and whistles, Intel is agreeing to have Google as the middle man to manage partners co-marketing on-line (at least for on-line advertising for now). Strange move isn’t it, and I don’t buy it. If one vendor is serious about his ecosystem, one needs to manage it and not leave this to third parties having a biased interest that might hurt the vendor’s strategy.
I don’t have anything against Google, and I should say I praise them to have vigorously made Web 2.0 strong, but I would not let Google be my middle-man, instead I’d have Google be my ecosystem provider. Not to mention that Intel’s partners would probably benefit from an integrated approach to their co-marketing experience with Intel. On-line advertising is far from being enough.
Apart from this, if you didn’t notice Google’s accelerated pace to expand their business footprint, here is a quote that says it all:
“This month alone, the company has announced its intent to acquire ad-placement giant DoubleClick; struck a deal with Clear Channel Radio to sell ads on its radio stations; added support from several major radio-station systems for its Google AdSense for Audio program; and partnered with EchoStar to sell TV commercials over the satellite broadcaster’s Dish Network. ” — Beth Snyder Bulik, Advertising Age
Hey fellows at Microsoft, it’s about time for you to react to try to grab some of the $125 billion advertising market Steve Ballmer claimed he was after.
It’s been around for quite a while, the late 90’s. But as privacy and technical issues are going away, marketers should consider behavioral targeting in their on-line advertising campaigns.
For those who just missed it, behavioral targeting is the ability to deliver ads to consumers based upon their recent behavior viewing web pages, shopping online for products and services, typing keywords into a search engine or a combination of all three. You can have some more details on behavioraltargeting.com and behavioral targeting 101 on iMedia Connection.
Microsoft recently added it to its offering — read Microsoft adds behavioral targeting – Tech News & Reviews – MSNBC.com — as Yahoo did before as well — read Yahoo! behavioral targeting.
Interestingly enough, AdAge Digital highlights that Behavioral Targeting becomes The New Killer App for Research. Some even put forward some effectiveness performance:
“The behavioral targeting ads increased ad awareness by 51%, while content targeting resulted in only a 33% boost.” — Snapple
As Marketing 2.0 is all about considering your customers and prospects literally as Stars, this should be no surprise to you that I wanted to stress the use of it as a “must have” advertising tactic. Relevant context is king.
It’s now effective, last Thursday Google began limited test of radio advertising. The system resulting from Google’s earlier acquisition of dMarc Broadcasting (Jan 2006), extends the AdWord platform with the ability for advertisers to create and manage radio advertising campaigns as an additional channel to their web campaigns. Sounds like integrated marketing made easy.
Google covers 800+ radio stations in the US targeting 5,000+, 87% US territory coverage, 19 of the top 25 markets and reports 300 Million impressions weekly.
It operates in 4 steps – read more in Donna Bogatin’s blog from ZDNet:
“Step 1) Station inventory management system and studio log.
Step 2) Google links electronically with stations to search for inventory that fits advertiser criteria.
Step 3) Inventory is paired with advertiser requests.
Step 4) Google delivers automated order to radio station and reserves inventory.”
Check out AdWords Help Center for some more.
My immediate reaction is to relate to integrated marketing of course, thinking that over time we’ll have a choice of web based platform to pilot our integrated marketing campaign in real-time.
When you combine this idea with local search marketing, GPS rapid growth and mobile phone as marketing devices, we’re getting closer to 1:1 marketing for the masses – remember Minority Report’s changing billboards ads?
And finally, it looks like real-time advertising campaign measurement and adaptation is making its way beyond web advertising to encompass radio and I’m pretty sure TV in a short while.
Marketing 2.0 is all about integrated and measured marketing with the ability for a brand to react real-time to its audience behaviors. No longer can we have weekly or monthly meetings with our media planning agencies to figure out what to do next. Marketing 2.0 is real-time.