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July 03, 2008

Google Ad Planner Shakes Up Web Analytics

(* Source: eMarketer *) 

 

Google tosses its hat into the Web measurement ring.

Google is at it again. On June 24, the search giant unveiled its new Ad Planner service via a post on its AdWords Blog. Its latest foray into the analytics category, Ad Planner is currently in pilot form, being offered by invitation only and free for a limited time. Aimed specifically at media planners, the new service is coming directly off the heels of last week's introduction of Google Web Trends—though Web Trends is targeted toward all Internet users.

Ad Planner allows media professionals to find the Web sites an advertiser's target audience is likely to visit based on metrics such as demographics and site traffic. Ad Planner users can drill down using more specific filters such as age, gender, education and household income. The service can also give planners and advertisers information on a site's international reach and unique visitors, as well as a list of keywords that visitors used in searches.

Google, already the leader in search, is now looking to strengthen its analytics services in an effort to capture more display advertising revenues. Ad Planner will make highly coveted Web tracking data available to advertising professionals for free, essentially opening up the ivory tower to smaller advertisers and agencies. Some industry experts believe it could be a boon for small agencies, as media planners at these firms do not always have the budget for more expensive Web tracking resources.

US Online Advertising Revenue* Growth at Top Four Portals, 2005-2008 (% change)

"Google's deep pockets allow the company to create free offerings, such as Ad Planner, as a useful come-on to marketers to gain their ad business," said David Hallerman, senior analyst at eMarketer. "However, continued uncertainty about which company's Web measurements are most accurate could get exacerbated—or clarified—by another analytics service."

The introduction of Ad Planner appears to position Google as a direct competitor to firms such as comScore, Nielsen Online and Hitwise. Though each service analyzes sites based on similar metrics, such as traffic and demographics, their methodologies and business models differ. comScore, Nielsen and Hitwise charge subscription fees to access their data, while Ad Planner currently does not.

comScore and Nielsen also use panels and surveys of volunteer Web users to collect data. Hitwise takes a network-centric approach, collecting its usage data directly from ISP networks. Ad Planner data is gathered, in part, via the Google Toolbar. Google can also leverage data from other sources, such as its search results, third-party networks and other partner market research firms—though the company has not released a list of exactly which sources it will be including.

Each service's methodology, however, has drawn criticism from industry experts. Panel and survey search strategies have come under fire in the past, the main argument being that Web usage is too fragmented to be accurately represented by a limited sample size. Reporting solid results about Internet usage becomes tricky when using a restricted number of participants. Smaller sites may not be included in results, and the selected panel may not accurately represent the online population as a whole.

Meanwhile, Google leads in search, with a market share of nearly 70%. This means that more than 30% of searches are not being tracked by the company and will not be included in Ad Planner data.

Leading Search Engines in the US, Ranked by Market Share of Search Volume, May 2008

Some experts wonder if Google's Ad Planner service may be a conflict of interest. Will advertisers trust data from a source that sells them online advertising?

"Since Google's purchase of DoubleClick, the search giant—even more than before—needs to walk a fine line," said Mr. Hallerman. "While publishers use their own traffic data all the time to sell ads on their pages, the Ad Planner service can also be used more objectively, with data from sites Google has no control over or interest in."

Most pundits predict that comScore and Nielsen will weather the Ad Planner storm. These services currently offer more detailed results than Ad Planner, as well as the integration of offline information and the ability to cut data in more ways. comScore and Nielsen Online may focus on their premium services as a distinguishing characteristic, while touting their custom research capabilities. Some analysts even propose that Google's new service may be better compared to other free Web trackers, such as Amazon.com's Alexa, Compete.com and Experian.

Ad Planner appears to be the next step in Google's evolution of advertising services. Mr. Hallerman notes that as Ad Planner develops it will likely have two levels, like many other online services: a free service for basic offerings and a subscription level for additional functionality.

"Keep in mind that Ad Planner is only in beta right now," warned Mr. Hallerman. "Perhaps, like other Google offerings that are released in beta, it might take some time before getting fully developed. However, this type of Web analytics will improve as more companies use it, generating more data for ad measurement."

 

June 26, 2008

Google Trends for Websites

(* Source: Dan Taylor *) 

 

Just caught up with the launch of Google Trends for Websites which extends the functionality of the original Google Trends (which charts the relative popularity of search terms) to offer site-specific traffic data. Whilst TechCrunch and ReadWriteWeb are both rather sniffy about it, citing its partial data-set and lack of coverage for smaller sites, for me it adds a couple of interesting new elements in the form of the 'Also visited' and 'Also searched for' rankings (data which I don't think either Compete or Alexa provide for free).

Thus, the trends page for bbc.co.uk indicates that visitors to the BBC site are also visiting other broadcasters (ITV and Channel 4), middle-class retail outlets (John Lewis and Marks & Spencer) and a range of other, primarily task-oriented, sites (weather, price comparison, concert tickets, motoring and government services/information). It also reveals how popular 'bbc iplayer' has become as a search term.

Compare with the trends page for channel4.com which, apart from revealing a much greater seasonal fluctuation in seasonal traffic levels (thank you Big Brother), indicates that visitors to the Channel 4 site are often visiting other TV related sites (plus a couple of food sites and a cinema chain). Search is dominated by programme titles (esp. Big Brother).

Whilst the statistical robustness of this data is clearly questionable, it nevertheless provides an interesting insight into the behaviours around some of the web's biggest properties (Google excepted). Whilst similar data can be obtained (for a fee) from companies like Hitwise, this is the first time - to my knowledge - that 'Also visited' and 'Also searched for' data has been made freely available in this way.

 

June 24, 2008

Top 100 Advertisers Shifted $1 Billion To the Web Last Year At The Expense Of TV And Newspapers

(* Source: Erick Schonfeld *) 

 

 

The top 100 advertisers in the U.S., who represent 41 percent of total advertising spending, shifted about $1 billion last year from TV and newspapers to the Web. An analysis from Ad Age shows that overall media spending in “measured” categories (TV, print, radio, Web) by the top 100 advertisers was flat in 2007, with 0.3 percent growth to $61.3 billion. But spending on Web display ads rose 33 percent to $4.2 billion. The article notes:

Put another way, these top-tier marketers increased measured internet spending by $1 billion; slashed newspaper spending by $674 million; and cut TV budgets by $406 million.

This is yet one more piece of evidence that dollars are flowing from traditional media to the Web. The analysis is based on data from TNS Media Intelligence for 2007. TNS only measures display advertising, and not search.

The big question is whether the recession that has already hit some categories of advertising will hit the Web this year. Already, the growth of spending in display advertising slowed overall in the first quarter of 2008. And the Interactive Advertising Bureau showed a slight decline for all Web advertising (including search) to $5.8 billion in the first quarter, from $5.9 billion in the fourth quarter of last year.

Here is a table from Ad Age showing the breakdown in spending for the top 100 advertisers (the $44 billion in “unmeasured spending” includes things like direct marketing, in-store advertising, and other promotions, and is not included in the figures cited above):


 

June 02, 2008

Like.com’s Creepy, But Effective, Facebook Ads

(* Source: Erick Schonfeld *)

 

 

Some interesting developments on the side of Facebook... Read on what Erick has to say.

 

like-ad-fb-small.png

Erick says...

Is a picture worth a thousand clicks? You’ve heard of contextual ads triggered by keywords on a Web page. Now, get ready for contextual ads triggered by images on the page. Visual-shopping search engine Like.com is running ads on Facebook that appear to match objects in profile photos.

Notice the ad by Like.com in the lower left for aviator sunglasses in the screen shot shown here, sent to us by TechCrunch reader Luke Bearden? Yup, those look eerily similar to the aviator sunglasses Bearden is wearing in his Facebook photo. Well, at least we know that Like.com’s technology works. Or maybe it’s just a coincidence. (Can someone from Like/Riya let us know which one it is in comments?).

But if this indeed is Like’s image-matching engine at work, is it effective targeting? Bearden thought the ad was “creepy.” And, um, he obviously already owns a pair of aviator sunglasses.

He also obviously likes them enough to feature himself wearing a pair on his Facebook page. And maybe he lost those beloved glasses or they broke since the photo was taken. So I’d say the ad is both effective and creepy.

Would you click on it?

 

May 08, 2008

Will MySpace Revenues Add Up?

(* Source: eMarketer *) 

 

News Corp. will have a full plate of Internet issues to discuss when it releases its quarterly earnings statement today. Foremost will be its plans regarding Yahoo!, and how whatever deal it does or does not do with Yahoo! will impact MySpace and Fox Interactive Media (FIM).

The drumbeat of skepticism over social network advertising has gotten louder in recent months. Much of the focus has been on MySpace, the US leader with a 41.5% share of US visits to social networking and community sites in March, according to Hitwise.

Top 10 Social Networking Sites and Online Communities in the US, Ranked by Market Share of Visits, March 2008

FIM reorganized its ad sales group in early April, leading to the departure of sales chief Michael Barrett. At the same time, news leaked that FIM might come up $100 million short of achieving the $1-billion fiscal 2008 revenue target set by News Corp. chairman and CEO Rupert Murdoch last June. (News Corp.'s fiscal year ends June 30.)

Financial analysts and the media have assumed that blame for the shortfall lies with MySpace, FIM's flagship, but FIM manages 12 other Internet properties, including IGN, FoxSports.com, RottenTomatoes.com and AmericanIdol.com. AmericanIdol.com will no doubt show strong revenues since the hot TV show is currently on-air. The smaller properties may not have fared as well and could very well take some of the blame.

eMarketer estimated last December that US marketers would spend $850 million to advertise on MySpace in calendar year 2008. Facebook is projected to reach $305 million in US revenue this year.

US Online Social Network Advertising Spending, by Type of Network, 2007 & 2008 (millions)

Even if MySpace does come up short of revenue goals, that should not sound the death knell for social network marketing. The conversation between brands and consumers has only just begun, and the advertising experimentation will continue.

 

May 01, 2008

Online Video Market Share: Veoh Sneaks Past CBS & March Madness

(* Source: Compete *)

 

The song remains the same at the top of the Video rankings in March: YouTube continues to outpace the market, growing 7.8% while the video viewing sessions across the web grew only 2.3%.

Meanwhile Veoh narrowly maintained its spot in the Top 10, with phenomenal 23.8% monthly growth, edging out CBS Interactive by a very thin margin. The CBS Interactive division includes Sportsline.com, which scored a 154% gain as the prime spot for watching live streaming March Madness games.

Meanwhile Joost, which is backed by CBS, presented the games as a live streaming “experiment.” While Joost works via client, the March Madness offering did not bring much in the way of new visitors to the site to download the player.

Advertisers placed $545 million on TV for the 2008 NCAA Tournament, according to TNS, but just a tiny fraction of that followed online. With 8.5 million consumers watching next-day tournament highlights and interacting with NCAA Basketball content on the web, there was a huge opportunity to reach March Madness fans and perhaps to do it with more efficient media buys.

We used Compete’s BehaviorMatch, which can be customized for any demographic or behavioral segment, to call out the top video sites for March Madness fans.

While Sportsline came out on top in terms of Composition, predictably, some unexpected sports video sites like Runners World and The Golf Channel also scored high. Meanwhile, the largest sites like YouTube and MySpace aggregated the most eyeballs but had the worst Composition scores.

 

April 29, 2008

Morgan Stanley’s March Internet Trends Report: Social Applications Dominating

(* Source: Michael Arrington *) 

 

 

 

Morgan Stanley’s Internet Trends report from last month takes a big turn from previous reports - the focus is nearly 100% on social applications and how they are taking over the Internet (Yahoo apparently read it). Key takeaways:

  • YouTube + Facebook page views > Google or Yahoo page views (and may be bigger than both combined)
  • 6/10 top internet sites are social (youtube, live.com, facebook, hi5, wikipedia, orkut); none were on the list in 2005
  • YouTube has 258 million users, 50% visit weekly or more
  • >50% of Facebook users log in daily, 95% of Facebook users have used at least one third party application
  • Skype revenue is $1.67/user/year, up 9% Y/Y
  • 14 million photos uploaded daily on Facebook
  • Google + Yahoo = 61% of U.S. Online Ad Revenue
  • Google: $4.4b ad revenue in Q4, paid out $1.4 billion to partners
  • Yahoo: $1.6 billion in ad revenue in Q4, paid out $429 million to partners

 

More here 

 

April 23, 2008

Is new media's future already happening in China?

(* Source: Sam Flemming *) 

 

Sam says on his iMedia article...

 

As the global internet community is striving towards a more connected online landscape, China's new media is already showing signs of the 'future'.

In its recently published report "The Connected Agency", Forrester suggests that the agency of the future will be a "connected agency", which should have "a deep understanding of consumer communities, helping brands create and nurture connections, deliver targeted, on-demand messages, and network for talent and insights."

While the Forrester report does not cover China, the need for agencies to help brands connect is more urgent with an online consumer community landscape that is more active, more complex and overall more evolved than the West. The state of China's online landscape is indeed so. For the country, the internet has always been social, and internet communities have always existed in the mainstream. In short, in China, the 'future' is happening now.  

Unfortunately, in contrast to the greater presence and impact of online communities in China, it seems that agencies here are arguably less prepared and less knowledgeable than their Western counterparts. As a result, you often find agencies recommending copy & paste internet word-of-mouth (IWOM) strategies from the West that at best have little impact.

Before taking action, it's important for brands to have an understanding of the different types of communities. Let's take a quick review of the current Chinese internet word of mouth IWOM landscape to understand where brands have opportunities to connect with communities.
 
BBS as the core of the social Chinese internet
BBS, or topic-based online bulletin board systems, serve as the online nation's "water cooler" for every kind of situation and topic imaginable. While bulletin boards in the West have existed for years, in China, they have not only been in existence for sometime, they actually dominate with 35.5 percent of the 210 million Chinese netizens who use BBS on a regular basis. Most importantly for brands, there are active product communities for almost every category including automobile, mobile phone, parenting and cosmetics. Taking just automobile alone, we see over five million messages per month coming from communities built around specific car models that include detailed product feedback as well as queries related to customer service. In China, BBS communities are the first place to look for active, mainstream and influential consumer communities.

Blogs as diaries
Blogging is absolutely popular, with 23.5 percent of Chinese netizens using blogs regularly. However, blogs, for the most part, serve as personal diaries for individuals (not "power influencers").

Portals have blog "circles" around certain categories, but it would be a stretch to call these circles "communities." Microblogging (such as Twitter- type applications) is beginning to take off with sites like fanfou and jiwai, but has yet to hit critical mass. While there are notable exceptions for some categories, including technology, for the most part, blogs generally have incidental product mention with no real community.

QQ as an ecosystem
Over 80 percent of netizens use IM, with Qzone and QQ groups covering over 70 percent share. QQ is for all practical purposes a social nework service (SNS). Compared to Facebook, it has 50 percent more active social network users. Most importantly, QQ has proved itself to be a capable partner for brands, leveraging its platform for massive reach, even if not deep engagement. An obvious example of that is Coke's iCoke platform.
 
SNS has not achieved much traction -- yet
While SNS has yet to gain traction in China, Xiaonei is the SNS to watch as it burrows into the university mindscape to provide an alternative to local university BBS. Xiaonei will need to differentiate itself in order to stand out among booming QQ and BBS, and gain attention from those using the Chinese "social" internet.

Q&A communities serving info seekers
Baidu's "I Know" question and answer community, along with Sina's I-Ask, and Tianya's Wenda, has fuelled a segment that has not really taken off in the West. Brands like KFC are beginning to sponsor certain topics as a way to connect with targeted communities and it is worth exploring this hot area.

The many emerging others
Online communities that support product feedback and other consumer discussions already exist within BBS. We are now seeing new sites and applications which are trying to create better platforms for these communities. Dianping is a restaurant review site which will likely morph into a more successful Yelp. Douban is a music and book review community that fulfills the same need as Amazon reviews. Wodeyichu is a community site that leverages netizens' propensity to show off their new purchases with pictures; Meeli takes this a step further as a site where netizens list their purchases, with pictures and pricing. These platforms are emerging and are enjoying varying degrees of traction.

Of course, awareness of the communities is just the beginning. How to meaningfully connect with, support and participate is the next and most difficult step. Navigating partners and strategies within such a varied, vibrant and complex IWOM media landscape is arguably more difficult than in the West even as the opportunity is more compelling.

Take Ford Focus for example: every month, there are over 150,000 messages around the car on automobile BBS communities. How can Ford be a part of these communities? Is it welcome? How can they join the conversation? In which communities are they being discussed? Are there other communities beyond auto BBS communities that might be relevant? To be a truly connected agency in China will require a different mindset that includes actually listening to and understanding local Chinese communities, not just knowing about them and treating them like a new media.

 

Forrester: Social networking will be biggest enterprise 2.0 priority by 2013; Smaller businesses reticent

(* Source: Larry Dignan *)

 

Larry says... 

Enterprise 2.0 will become a $4.6 billion industry by 2013 and social networking tools will garner the bulk of the money, according to a report by Forrester Research.

The report, released on Monday and penned by Forrester analyst G. Oliver Young, shows a few notable trends that are worth diving into. Sarah Perez at ReadWriteWeb first detailed the report. Here are the charts that jumped out for me.

forr1.png

That chart is basically the opposite of what I would have expected. Enterprise 2.0 (all resources) should appeal more to small to medium sized businesses as it may lower implementation costs and provide other productivity enhancements. Instead more than half of these smaller businesses aren’t even considering enterprise 2.0 apps while the giants are diving in head first.

Forrester defines Enterprise 2.0 as the corporate version of Web 2.0. Here’s the research firm’s definition:

In Forrester’s view, the key hallmark of Web 2.0 is efficiency for end users, and the ultimate goal is to use technology like Ajax, rich Internet applications, blogs, wikis, and social networks to foster productive, advantageous behavior among employees, customers, partners, and other networks such as Social Computing, the Information Workplace, and collective intelligence.

Meanwhile social networking will be the biggest priority followed by mashups by 2013.

forr2.png

The top spending categories aren’t all that surprising. For instance, social networking is a decent substitute for knowledge management applications, a category that companies haven’t quite cracked. In other words, social networking could yield ROI. Mashups could also deliver faster time to market and it doesn’t hurt that giants like IBM are pushing them.

Other key takeaways:

Web 2.0 tools and technologies focus on worker productivity and collaboration. Offerings like those from BEA Systems, IBM, and Microsoft and from pure-play vendors like Awareness, NewsGator Technologies, and Six Apart all factor into the enterprise Web 2.0 space.forr3.png

Podcasting will the smallest enterprise 2.0 market with $273 million in projected spending by 2013.

Enterprise 2.0 apps will never see a blank IT slate: Legacy applications rule. Forrester writes:

Across the board, Web 2.0 tools enter a crowded space full of legacy software and processes that are difficult to displace and with which Web 2.0 software must integrate to be fully effective. Integration with lightweight applications like email and Excel, as well as heavier applications like Web content management suites, campaign management software, portal software, and customer relationship management (CRM) systems, must all be addressed over time.

Business units will drive enterprise 2.0 adoption. The IT department remains an obstacle due to slim budgets and the need to maintain legacy hardware and software infrastructure.

Enterprise 2.0 companies (right) will struggle to make deliver big profits. Why? Workers (and consumers) are used to free apps. “The starting point has been set at free, and buyers will always have the option to try to exploit a free consumer-class service to solve an enterprise problem if the entry price gets too high,” says Forrester. If that scenario plays out you really have to wonder how enterprise 2.0 will generate $4.3 billion in spending by 2013.

 

April 03, 2008

10 Trends Marketers Should Know About Social Networking

(* Source: Aki Spicer *)

 

Aki gives a a good perspective on this topic. Read on...

New Media Ad Spend up, But How Much?

(* Source: eMarketer *)
 

Ask 23 researchers the same question...

US spending on online and mobile advertising rose to $29.94 billion in 2007, according to PQ Media's "Alternative Media Forecast: 2008-2012" report.

The company included 18 digital and non-traditional media segments in its definition of alternative media.

PQ Media put new media ad spending at 16.1% of total US advertising spending in 2007, up from 7.9% in 2002.

“By 2012, we anticipate one out of every four dollars spent on advertising and marketing will be earmarked for alternative media,” said Patrick Quinn, CEO of PQ Media.

There is general consensus among researchers that US ad spending outside the four dominant traditional media (television, radio, newspapers and magazines) continued to grow throughout 2007. PQ Media appears a little more bullish about total spending in 2007 than some other researchers.

eMarketer tracks US online ad spending estimates and projections from 23 companies. Estimates of total US online ad spending in 2007 range from $10.9 billion (Universal McCann) to $30.5 (Veronis Suhler Stevenson).

So PQ Media is at the high end of the range. However, assuming that the mobile portion of their 2007 estimate was at least $2 billion, their 2007 figure for US online ad spending is certainly not an outlier.

Having examined the data from all the researchers, eMarketer estimates that US online ad spending was $21.1 billion in 2007.

 

April 02, 2008

What’s Holding Up Mobile Advertising?

(* Source: eMarketer *) 


Are mobile marketers moving ahead or merely spinning their wheels?

”2007 was not ‘the year of mobile marketing’ that it was advertised to be,” says John du Pre Gauntt, eMarketer Senior Analyst and author of the new report, Mobile Advertising: After the Growing Pains. “And 2008 won’t be either.”

Even though mobile marketing and advertising didn’t break into the mainstream during 2007, with events such as the iPhone launch and other under-the-hood improvements, mobile marketers did take strides to move past the experimental stage of development.

In fact, eMarketer forecasts that worldwide mobile advertising spending will reach $19 billion by 2012.

”The vast majority of the spending will be based on text-messaging campaigns,” says Mr. Gauntt, “with mobile display advertising and mobile search constituting the rest of the main market.”

However, compared to other interactive platforms, mobile still remains extremely small in overall spending.

”A basic problem facing mobile marketing and advertising is that, while the business proposition cuts across many industries—telecom, technology, media, marketing, retail—it affects the economics of each industry differently,” says Mr. Gauntt.

But that’s not all.

“A clear bone of contention involves customer information,” says Mr. Gauntt. “All parties agree that better targeting will happen, given the personal nature of mobile phones, but the question of how to use customer information to improve ad targeting while respecting privacy remains elusive.”

Assuming the sensitive issues surrounding customer data and location can be solved, there is still the matter of the true elephant in the room: the possibility of advertising revenue subsidizing basic mobile services such as voice, text or data.

Telephia, now a part of Nielsen Mobile, recently reported the range of direct monthly charges levied on US mobile customers for different applications on top of mobile data access.

”It’s not lost on mobile users that they still pay for almost everything on mobile,” says Mr. Gauntt.

Before mobile marketing can truly get moving, many obstacles will have to be overcome.

 

Who's Spending on Social Networks?

(* Source: eMarketer *) 

 

Big spenders may be in the minority.

While social networks are struggling with how best to monetize their millions of users, some marketers have yet to commit major budget to the channel.

One-third of US marketers and agencies surveyed in an iMedia Connection poll in March said that they planned to spend $300,000 or less this year on social network marketing. The poll was conducted among attendees at the recent iMedia Breakthrough Summit.

"At those amounts, social network spending may still be categorized as experimental for many marketers," said Debra Aho Williamson, senior analyst at eMarketer.

Online Social Network Marketing Spending Planned this Year by US Marketers and Marketing Agencies, March 2008 (% of respondents)

To be clear, the poll was not conducted among a representative sample of marketers. However, it is useful in a directional sense. The 29% of marketers polled by iMedia Connection who plan to spend $2 million or more will help social network ad spending add up.

eMarketer predicts that US online social network ad spending will near $1.6 billion this year. The figure includes all forms of advertising appearing on social network sites, including branded campaigns as well as search, video, local advertising and ads delivered via ad networks.

US Online Social Network Advertising Spending, 2006-2011 (millions and % change)

"As in many other developing advertising markets, much of the spending on social networks is driven by leading-edge marketers who are willing to take risks," Ms. Williamson said.

Estimates of the exact percentage of marketers using social networks vary by source and methodology.

October 2007 studies by CoreMetrics, the IAB, Prospero Technologies and others found that anywhere from one-fifth to nearly one-half of marketers used social networks. Differences hinged on whether or not marketers were already using social networks or intended to use them, and if the marketers considered themselves to be digitally savvy or not.

Comparative Estimates: US Marketers Using Social Network Marketing, 2006 & 2007 (% of respondents)

 

March 19, 2008

The Web in Charts—Google vs. Microsoft-Yahoo vs. China

(* Source: Erik Schonfeld *)

 

An excellent overview on the web today.

 

Erik says...

Today more than ever, the Web is a global game. Below are charts from a new State of the Internet report from comScore that paints a picture of global competition on the Web.

In 1996, two thirds of all people online (66 percent) lived in the U.S. By last October, that had completely flipped, with 77 percent of the online population living in the rest of the world and only 23 percent in the U.S. The U.S. still has the largest total number of Web surfers (162 million a month), but China is catching up fast (with 96 million):

comscore-dw-country.png

In China, homegrown sites such as TenCent, Baidu and Sina all reach more native Web surfers than Microsoft, Google, or Yahoo:

comscore-dw-china.png

In fact, the leading Websites in many big markets such as Russia, Japan, and South Korea tend to be homegrown as well:

comscore-global-leaders.png

Social networks are the fastest-growing category of sites (nearly 60 percent annually), but they still lag in terms of penetration (less than 40 percent) behind photo sites, entertainment sites, search, and portals:

comscore-quadrant-small.png

The fastest growing of all social networks, of course, has been Facebook, which jumped from the second pack to where it is now running neck-and-neck with MySpace:

comscore-dw-social-networks.png

Drilling down into search, Google still dominates with 62 percent share worldwide:

comscore-search-share.png

And it dominates search even more in other countries than it does in the U.S., where it only commands a 53 percent market share (compared to above 90 percent in parts of Europe and Latin America):

comscore-search-countries.png

Looking at the efficiency of its search ads, Google puts up an ad against only about half of its searches, whereas Yahoo puts up an ad 75 percent of the time. Yet for those searches where an ad is shown, Google gets 0.24 paid click per search compared to 0.18 for Yahoo and 0.14 for Microsoft. (Search advertising on AOL and Ask are also powered by Google and they show the same or better clickthrough rates).

comscore-paid-clicks.png

For display ads, Yahoo and MySpace control the most market share, with 19 and 15 percent each, respectively. (Microsoft comes in a distant third with 6.6 percent):

comscore-ad-share.png

The report also gives an estimate of the unduplicated reach of Microsoft and Yahoo. A combined Microsoft-Yahoo would have 173 million unique visitors a month across the globe, a 10 percent share of all page views, 32 percent share of search, and 24 percent share of display ads:

comscore-yhoomsft.png

Both Microsoft and Yahoo each have about 260 million Webmail users (with duplication), with Google’s Gmail bringing up third place with 87 million (no wonder Google execs keep bringing up market concentration concerns in relation to mail and instant messaging):

comscore-webmail.png

 

March 17, 2008

Google Sucks Life Out of Old Media

(* Source: Henry Blogget *)

 

Henry says...
 

For the past few quarters, we've analyzed the amazing rate at which advertising spending is moving online. Now we're able to look at full-year 2007.

Specifically, we analyzed the change in US advertising revenue at 17 major media companies from 2006 and 2007. The companies included Google (GOOG), Yahoo (YHOO), Time Warner (TWX), Disney (DIS), Viacom (VIAB), CBS (CBS), and Clear Channel (CCO). The companies span all the major advertising sectors: Online, TV, Print, Radio, and Outdoor.

Highlights:

  • Total US ad revenue across all 17 companies grew 9% from 2006 to 2007, from $53 billion to $58 billion
  • Online ad revenue grew 28%, from $14 billion to $18 billion.
  • Offline grew only 3%, from $39.5 billion to 40.6 billion. This was helped significantly by the inclusion of affiliate fees and (and global revenue) at CBS, Viacom, and News Corp.
  • Online ad revenue grew by $4 billion.
  • Offline ad revenue--in all other media--grew by $1 billion.

So advertising revenue is flowing online at a frantic rate. That's the whole story? No. Let's look at how that online revenue breaks down.

  • Online ad revenue grew 28%, or $4 billion.
  • Online ad revenue at Google grew 44%, or $2.7 billion.
  • Online ad revenue at Yahoo, Microsoft, and AOL grew only 15%, or $1.3 billion.
  • Google captured 2X as much revenue as its closest three competitors combined.

It is true that perhaps a third of Google's growth came from AdSense revenue, which is placed on third-party sites--so other companies are benefiting from this growth. But the growth on Google's properties alone still vastly exceeded the growth on AOL, Yahoo, and Microsoft.

Another fun stat:

  • The year-over-year growth of revenue on Google.com (US)--approximately $2 billion--was more than twice as much the growth of ad revenue in all of the offline media companies in this sample combined. This is such an amazing fact that it bears repeating: A single media property, Google.com (US), grew by $2 billion. All the offline media properties owned by the 13 offline media companies above, meanwhile--all of them--grew by about $1 billion.

For supporting details, please see our SAI Advertising Share Shift spreadsheet.  TechCrunch's Erick Schonfeld runs some cool graphics on the numbers.

 

March 12, 2008

Internet Users Think It's All About Them

(* Source: eMarketer *) 

 

Just what is "age-appropriate"?

The majority of US Internet users think the Internet speaks directly to their age group.

Burst Media said that more than one-half of respondents to its February 2008 survey thought that online content was focused on them.

US Adult Internet Users Who Believe Online Content Is Focused on Own Age Group, by Age, February 2008 (% of respondents in each group)

Respondents over age 44 were far less likely to say that online content focused on them.

Burst also found that starting at age 35, respondents felt that online ads were aimed at younger Internet users.

US Adult Internet Users Ages 35+ Who Believe Online Advertising Is Focused on Younger Age Group, by Age, February 2008 (% of respondents in each group)

Burst concluded that content providers and advertisers were missing an opportunity to target Internet users over the age of 34.

"You may have opportunities to expand content offerings to segments that currently see themselves as under-served by the Internet," Burst researchers wrote. "The 55 years and older segment is rapidly replacing other media as the primary source for news, entertainment, and information."

The company also recommended that advertisers "utilize creative that is age-appropriate in both design and messaging."

That is always good advice, but the study raises at least two issues of equal importance.

For one, "online content" is a generic term that does not reflect the quantity or range of material housed on the Web. It also ignores the fact that Internet users invariably deliberately search for material that is of interest.

 

March 05, 2008

Let the Video Game Ads Begin!

(* Source: eMarketer *) 

 



Pow! Bam! Whap! Watch out! Here comes a hot new ad space!

Video-game advertising comprises a number of different segments, and they are all seeing plenty of action.

Overall, eMarketer projects that US in-game advertising spending will increase from $295 million in 2007 to $650 million in 2012.

In-game advertising spending is buoyed by a vibrant video game industry that is enjoying unprecedented growth. eMarketer projects that video game software and hardware sales will increase to $21 billion in 2012.

”At a time when other sectors of the digital entertainment industry are struggling with lagging sales and rampant piracy, the US video game business is booming,” says Paul Verna, eMarketer Senior Analyst and author of the new report, Video Game Advertising report.

As evidence of the vitality of the game industry, an average of nine games were sold every second of every day in 2007, according to the Entertainment Software Association (ESA).

”To compare video games to other media,” says Mr. Verna, “the top-selling video-game title of the year, ‘Halo 3,’ took in more revenue on its first day of sales than the biggest opening weekend ever for a movie, ‘Spider Man 3,’ and even the final Harry Potter book’s first-day sales.”

In addition, comScore reported that video games, consoles and accessories was the top e-commerce growth category in the US in the second and third quarters of 2007, as well as during the peak holiday shopping period of the fourth quarter.

”The biggest online retailer, Amazon.com, reported its best holiday season ever in 2007 and attributed its success to the Nintendo Wii console,” says Mr. Verna.

Long gone are the days when video games were the domain solely of teenage boys. The category is hot—because eyeballs of all ages are there.

”Today, avid and casual gamers fall into a broadening array of demographic profiles,” says Mr. Verna. “They might include middle-aged men who live out their latent rock and roll fantasies by playing ‘Guitar Hero,’ married women who get together with their friends to play Wii Table Tennis or retirees who play online board games with their grandchildren.”

It is no wonder that advertisers want to play, too.

 

February 28, 2008

Report: Internet Ad Revenues Up 25% in 2007 to $21.1 Billion

(* Source: Mark Hefflinger *) 

 

 

 

 

 

Internet advertising revenues from 2007 are expected to come in at $21.1 billion, in a year that saw record revenue levels in all four quarters that propelled the market up 25% over 2006's record $16.9 billion, according to data from the Internet Advertising Bureau (IAB) and PricewaterhouseCoopers. Still, the gain of $4.2 billion in revenue in 2007 was still less than the $4.3 billion in growth, and 35% revenue increase registered between 2005 and 2006.

The report estimates that fourth quarter 2007 Internet ad revenues reached a record $5.9 billion -- a 13% increase over the third quarter of 2007 and 24% increase over the fourth quarter of 2006.

"The continued record growth evidences the importance and uniqueness of interactive media to both consumers and the marketers that are trying to reach them," said David Silverman, a partner at PricewaterhouseCoopers.

February 26, 2008

Online Video: A Changing Picture

(* Source: eMarketer *) 

 

Coming soon to a screen near you: Convergence.

The term “convergence” may sound retro, a notion tossed around in the 1990s that never really came to pass. But don’t be fooled.

Today, the bulk of video consumed online is snackable video—bite-sized entertainment—rather than a complete meal of full TV episodes or full-length movies.

Types of Online Video Content that US Online Video Viewers Watch Monthly or More Frequently, 2007 (% of viewers)

The most popular online video content, watched by 40% or more of the US online video audience, consists of short pieces of five minutes or less: news clips, jokes, movie trailers, music videos, clips from TV shows and entertainment news.

”As technology problems are solved, however, making the computer-television connection more viable and pleasurable for the average consumer,” says David Hallerman, eMarketer Senior Analyst and author of the new report, Online Video Content: The New TV Audience, “online video content will expand in both length and breadth, and professionally-produced material will account for a large part of the menu.”

It hasn’t happened yet, but full-blown convergence between television and the Internet is on the way.

”The trend toward greater video convergence is being driven by factors such as broadband, digital TV and, ironically, the fragmentation of the audience,” says Mr. Hallerman. “Fragmentation is forcing traditional television players, the networks and studios, to reach out where the audience lives.”

And, increasingly, the audience’s entertainment life is found on the Internet.

A survey of viewers by TNS uncovered a number of reasons for watching less television.

Reasons that US Online Video Viewers Watch Less TV* Compared with a Year Ago, July 2007 (% of respondents)

According to the most recent “The State of the Media Democracy” report, from Deloitte, most US consumers would like to be able to easily connect their home TVs to the Internet to view video, with younger users the most keen to connect.

Attitudes of US Internet Users toward Digital Entertainment, by Age, October 2007 (% of respondents*)

”Unfortunately, ‘easily’ is not readily achieved at this point,” says Mr. Hallerman.

Among the households watching video on their computers, the vast number still watch on the Web, using their browsers, while less than 10% use some kind of TV connection, according to the “Digital Content Unleashed” report from ABI Research.

Methods Used by US Internet Households to Watch Video via PC, Q2 2007 (% of respondents)

”People lean toward the Internet over TV when it comes to elements such as convenience, control and the ability to easily find enjoyable content,” says Mr. Hallerman. “TV video content wins out for relaxation, sharing the experience with friends and family and less annoying advertising than online.”

The technical and viewer preference obstacles to convergence are many, and they won’t be overcome easily or quickly.

”Surveys have found that already roughly half of all US consumers who watch video watch at least some of it online,” says Mr. Hallerman. “That percentage isn’t going down, and the desire for convergence isn’t going away.”

 

February 25, 2008

Is TV Time Caught in the Web?

(* Source: eMarketer *)



Avoiding the wrong conclusions on Web usage.

Ever since US Internet usage became widespread, marketers have been tracking online usage to see if Web time was coming at the expense of TV time.

Now, IDC has found that Internet is the medium on which US online users spend the most time--32.7 hours per week, almost twice as much as they spend watching television. The data was collected in September and October 2007.

"The time spent using the Internet will continue to increase at the expense of television and, to a lesser extent, print media," said Karsten Weide, program director at IDC. "This suggests that advertising budgets will continue to be shifted out of television, newspapers, and magazines into Internet advertising."

Average Time per Week that US Internet Users Spend with Select Media, September-October 2007 (hours)

This sounds like the trumpet of doom being sounded for TV viewing and the ad dollars that go with it.

But that's not the whole picture.

The press release accompanying IDC's findings said that the company used a sample of "US residents 15 years of age or older who frequently use the Internet." Since the release did not state what this group's TV viewing habits were in the past, the only conclusion that can be drawn is that this group of heavy Web users is online for more time than they watch TV.

The study makes no mention of multitasking.

IDC's findings of time spent online do agree with other studies. comScore Media Metrix found that Internet users spent an average of 29.34 hours online from October 2006 to October 2007. The company surveyed a more general online population than IDC did, not just frequent Internet users.

During September and October 2007, when the IDC study was conducted, US Internet users surveyed by comScore Media Metrix tallied an average of 29.51 hours online.

Time Spent Online by US Internet Users, October 2006-October 2007 (millions of total minutes per month and average minutes per user)

The USC Annenberg School Center for the Digital Future put time spent online by US Internet users at an average of 15.3 hours weekly in 2007. USC's findings were specific to home usage, and did not include work or school usage.

USC said that it did not subtract time spent at home doing work, since it said that time spent for personal online usage at work balanced it out.

How do IDC's heavy Internet user media usage numbers compare with media usage by the general population?

Forrester Research examined time spent by US adults on various media in 2007. The research company found that, including personal and work usage, time spent online still trailed time spent watching TV.

Although TV ad spending as a percentage of all media ad spending trailed TV viewing time as a percentage of time spent with all media slightly, the corresponding difference between time spent online and Internet ad spending was still profound, at nearly 4 to 1.

Share of Time in a Typical Week that US Adults Spend with Select Media* vs. Share of US Advertising Spending by Media, 2007

Comparing the IDC and Forrester data suggests that each set of findings should be read for what they are. In IDC's case, the notion that heavy Internet users spend much more time online than on TV is a cue to marketers targeting such users.

The Forrester numbers provide a reality check, however, suggesting that TV ad spending is not set for an immediate exodus to the Web. Online ad spending still greatly trails online usage as a percentage of time spent compared with other media, but TV is still the media of choice for US consumers as a whole.

 

February 21, 2008

162 Million Internet Users in China

(* Source: Tangos *) 

 

Tangos reports... 

According to the latest report by China Internet Network Information Centre (CNNIC), at the end of June 2007, Chinese Internet users has reached 162 million, which means an increase of 25 million in last six months, the biggest half-yearly increase ever. But it may because CNNIC report change the definition of Internet users, in all previous reports, Internet user means Chinese citizen aged 6 and above who averagely use the Internet at least one hour per week. However, in its latest report, Internet users are Chinese citizens aged 6 and above who use the Internet in last half year.

The following are my quick thoughts on the latest report:

  • Mobile Internet will become more and more important, over 44 million users use mobile handsets to access Internet, an increase of 27 million (159%) in last six months.
  • Over half of all Internet users(51.2%) are under age 25. The Internet penetration rate for users aged between 18 to 24 is 43.4%. Internet has become their lifestyle, that’s also part of the reasons that QQ and 51.com are so popular in China.
  • The percentage of Internet users with high school education or below increased from 48.2% in half year ago to 56.1%. The percentage of users with an income below 1000 yuan increased from 47.6% to 51.7%. You need to understand these group of young users to become leading player in China’s Internet market.
  • Over 37% users, increased from 32.3%, access Internet in Internet cafe. It is said that 51.com is very popular among Internet Cafe users
  • IM is more important in China than email for communication. More netizens use IM than email (69.8% vs. 55.4%), while over 90% Internet users use email in US. IM usage rate is even higher (74.6%) among users under age 25, while the email usage rate is only 46.6% among them.
  • Online entertainment demand is the most important demand among Chinese yougsters(under age 25), with 91.4% of them used online music, 79.6%% used online movies, and 67.1% played online games.

Well, from this data, you may find the characteristics of Chinese Internet is quite different from those of US, you should study the report in detail to understand Chinese Internet users better. The full report in PDF file can be downloaded (English version report) here.

 

February 18, 2008

500 Million Internet Users in Asia-Pacific

(* Source: eMarketer *) 

 

According to recent estimates there were 6.6 billion people in the world in 2007. Of that number, 1.15 billion, or 17.5%, were regular Internet users. By 2012, eMarketer projects that over 1.7 billion people worldwide (24.5%) will access the Internet at least once per month.

This year will see China overtake the United States as the most populous Internet nation in the world and the Asia-Pacific region will top 500 million Internet users.

Internet Users Worldwide, by Region, 2007-2012 (millions and CAGR*)

By 2012, nearly 50% of the world’s Internet population will live in the Asia-Pacific region. The share of the world’s Internet users in Europe and North America will fall, though absolute numbers will continue to rise in both regions, as the share of users in Latin America and the Asia-Pacific region both grow.

Internet Users Worldwide, by Region, 2007 & 2012 (% of total)

The Netherlands and the Scandinavian countries lead the world in terms of Internet penetration, and reached something of a saturation point around 80% of the population in 2007.

Countries such as China, Russia, India, Brazil and Mexico are relatively immature Internet markets and will be the primary drivers for worldwide Internet user growth over the next five years.

Internet Users and Penetration in Select Countries Worldwide, 2007 (millions and % of population)


 

Web Widgets and Applications:

(* Source: eMarketer *) 

 

So far, widgets and applications are garnering far more attention than actual ad dollars. Although consumers are increasingly using them, eMarketer estimates that US companies will spend only $40 million in 2008 to create, promote and distribute widgets, up from $15 million in 2007.

The Web Widgets and Applications report tracks the trends that are driving this unique and intriguing, but not yet lucrative, area of Internet development.

Widgets are popping up everywhere online. Since Facebook opened up to third-party applications in May 2007, nearly 15,000 applications have been developed. Overall, some 100,000 developers are working on widgets and applications worldwide.

Widgets are new, hot and fun. But there are already raising concerns, including “application burnout,” measurement difficulties, distribution challenges and deceptive techniques used by some widget developers to increase their installation rate.

The widget and application business can really grow—it has some growing up to do.

US Web Widget and Application Advertising Spending, 2007 & 2008 (millions and % of total social network ad spending)

 

More here 

January 28, 2008

Social Networks Straddle Hype and Reality

(* Source: eMarketer *) 

 

Either way, marketers are getting prepared.

Social media network growth may be overhyped.

Nearly seven out of 10 senior media executives surveyed in December 2007 by AdMedia Partners said they thought so.

However, a majority of respondents said that growth predicted for mobile content, integrated ad networks and gaming was accurate.

Attitudes of US Senior Media Executives toward Perceived Growth Opportunites for Select Digital Media, December 2007 (% of respondents)

Part of an overall study on media company M&A prospects for 2008, the findings were optimistic, at least in December.

“Eighty percent of respondents expect their own organizations to complete at least one media acquisition or divestiture in 2008,” said Mark M. Edmiston, managing director of AdMedia Partners.

Although buzz can be measured in some ways, hype is a subjective concept. Marketers preparing to use social media are not holding back because the tactic is getting too much press.

Still, social media networks are not used universally by most marketers yet.

A study conducted in the third quarter of 2007 by Coremetrics indicated that while the majority of responding marketing professionals were not planning to implement social media tactics in the next 12 months, about a fifth were.

About a quarter of those surveyed said they planned to use some type of user-generated content or blogs as marketing tactics.

Social Media Marketing Tactics that US Marketing Professionals Plan to Implement, by Timeframe, Q3 2007 (% of respondents)

Marketers have been more likely to engage consumers with Web sites or consumer feedback through social networking, according to a spring 2007 report from public relations agency Manning, Selvage & Lee conducted by PR Week and Millward Brown.

New Media/Consumer-Generated Media Tactics Used by US Marketers, April-May 2007 (% of respondents)

“Marketers who think that using a Web site or asking for consumer feedback on a Web site represents cutting-edge new media tactics are missing tremendous opportunities to build their brands,” said Mark Hass, global CEO of Manning Selvage & Lee.

 

January 25, 2008

Word of Mouth Works Worldwide

(* Source: eMarketer *) 

 

The unbiased opinion is trusted around the globe.

There are more marketing channels aimed at consumers than ever. Yet more than three-quarters of consumers surveyed worldwide find that consumer opinions are the most effective form of advertising, according to a Nielsen study.

Nielsen surveyed Internet users in 47 markets in Europe, Asia Pacific, the Americas and the Middle East on their attitudes toward many types of ads, including television, branded Web sites and consumer-generated content.

"The fact that consumers think opinions posted online are as trustworthy as brand Web sites speaks to the power of online reviews and recommendations," said Debra Aho Williamson, senior analyst at eMarketer.

"It also means that marketers need to focus as much attention on what consumers say about their brands online as they do on creating the brand Web sites themselves," Ms. Williamson said. "The easiest thing to do is to make consumer feedback an essential part of every brand Web site."

A similar study conducted by GFK Roper Consulting on the trustworthiness of sources used to make purchases found that consumers rated word of mouth highest.

In the US, more than nine in 10 respondents to a DoubleClick survey said that a friend's recommendation was the most important influence when it came to buying a product or service.

"In all these studies, word of mouth has more of an impact than traditional forms of advertising," Ms. Williamson said. "Having a word-of-mouth marketing strategy is becoming essential for marketers."