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Archive for June, 2011

eMarketer Co-Founder and CEO Releases Comprehensive Guide for Digital Marketers

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“This masterpiece is the backbone for how brands should leverage online marketing for success.”

NEW YORK, NY (June 28, 2011)—eMarketer co-founder and CEO Geoff Ramsey and McCann Worldgroup EVP Vipin Mayar have released a new book for digital marketers and advertisers, Digital Impact: The Two Secrets to Online Marketing Success (9780470905722; July 2011; $24.95; Hardcover). The book, which arrives in stores today, provides a complete set of guidelines for mastering two crucial concepts: Performance Measurement and Magnetic Content.

With Secret No. 1, Performance Measurement, the authors reveal the seven most important metrics for digital marketing and apply them across all channels, including search marketing, email, social media, online video, mobile and display advertising. Secret No. 2, Magnetic Content, fleshes out approaches for creating marketing messages that naturally attract consumers.

The book evidences the authors’ combined 25 years of expertise in the digital world, detailing a bullet-proof game plan for executing effective online marketing, as well as a blueprint for integrating offline and online efforts.

DIGITAL IMPACT is authored by two of the most insightful, analytical and influential marketers of today—Ramsey and Mayar,” said Bob Liodice, CEO of the Association of National Advertisers. “This masterpiece is the backbone for how brands should leverage online marketing for success.”

As CEOs and CFOs of Fortune 1000 corporations demand a return on investment for the millions spent on online advertising and marketing, Ramsey and Mayar alleviate the pressure by helping marketers create messages that reach today’s fragmented consumers, while also providing a proven method for streamlining measurement and metrics across all digital channels.

“The authors identify what marketers must do in simple, easy to understand language that cuts through the clutter and gets the reader to that ‘aha moment,’” continued Liodice. “This is the real deal.”

Gone are the days when consumer audiences willingly accepted interruptions from advertisers in exchange for news and entertainment—when you could simply place an ad and assume that the money was well spent. Today, with new technologies and platforms constantly dividing their attention, consumers are harder to reach and engage than ever.

DIGITAL IMPACT answers the challenges online marketers face with digitally empowered consumers, including short attention spans, a plethora of choices and a stubborn resistance to advertising messages. Through actionable data, case studies and strategic insights from top-tier marketing professionals, readers will take away practical strategies for executing effective online marketing, as well as a blueprint for integrating offline and online efforts.

“Now is the time for this book…this is the definitive guide to creating engaging commercial content online,” said Nancy Hill, CEO of the 4A’s.

DIGITAL IMPACT provides game-changing tactics for achieving better bottom-line results, including:

  • The seven most important digital marketing metrics every marketer should know
  • How to calculate a return on investment for social media and other new-media initiatives
  • SEO and SEM tactics that can position any business for where search is headed
  • How to integrate offline and online marketing approaches for the best possible outcomes
  • How to build an excellent digital dashboard that will prove marketing’s worth to the C-suite

Written in an easy-to-read, approachable format, DIGITAL IMPACT presents provocative content along with practical, common-sense approaches that can be followed by any businessperson. The book allows marketers the ability to not only connect with and influence consumers in a digital world but ultimately make a bigger impact with a smaller budget.

Posted on June 28, 2011.    

Google’s Share of Search Ad Revenues Rises, Unaffected by Bing

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Microsoft’s Search Revenues Expected to Pass Yahoo! This Year

NEW YORK, NY (June 20, 2011)—Google is expected to extend its lead over Microsoft and Yahoo! this year, seemingly unaffected by the rapid growth of Bing, according to a new forecast by eMarketer.

eMarketer estimates net US search advertising revenue at Google will grow 38.9% to $10.92 billion in 2011. That will help push Google’s share of overall US search revenues to 75.9% this year, up from a 73.6% share in 2010 and a 69.8% share in 2009.

Microsoft’s share of overall US search ad revenues is expected to grow to 8% this year, when the company will bring in an estimated $1.15 billion in net US search ad revenues, up 38.9% from $828 million and a 6.9% share of the total market in 2010.

“The rise of social networks, notably Facebook, is not taking money away from search advertising,” said eMarketer principal analyst David Hallerman. “Marketers—especially those focused on direct response and high measurability—still see tremendous value in the search market. Brand marketers, too, increasingly understand how search can support other elements of their campaigns, even offline.”

Search is a heavily consolidated market, and progressively more so, with just four companies accounting for 93.6% of the ad revenues this year, and over 95% next year, eMarketer estimates.

“Search has become a duopoly dominated by Google, with Microsoft’s Bing and Bing-powered engines (Yahoo!) in a strong but distant second position,” said Hallerman.

For the first time, Microsoft’s search ad revenues will surpass those of Yahoo!, eMarketer estimates. Net US search ad revenues at Yahoo! are expected to dip to $1.14 billion—or a 7.9% share of the overall US search advertising market—in 2011, down from $1.28 million and a 10.7% share in 2010.

“Microsoft’s deal with Yahoo! has not yet helped the latter company,” said Hallerman. “In contrast, Google has benefited from the delayed fruition of the Yahoo!-Microsoft search alliance, steadily gaining market share as the alliance’s combined share has remained relatively flat.”

Search at Microsoft is growing faster than at Google, however, which Hallerman attributes to “the overall efficiency of the Bing search engine in delivering relevant results to searchers, and the company’s marketing of Bing to encourage more usage.”

However, Google’s lesser growth represents more than $2 billion in new search ad revenues this year, compared to only an estimated $322 million increase for Microsoft.

AOL’s share of overall US search ad revenues, meanwhile, is expected to decrease to 1.7% this year, down from 2.4% in 2010.

eMarketer forms its forecast though a meta-analysis of reported revenues from major ad-selling companies, results from its benchmark source—the IAB/PwC—and research estimates and methodologies from dozens of firms that track ad spending.

About eMarketer
eMarketer is the authority on digital marketing, media and commerce, offering insights essential to navigating the changing, competitive and complex digital environment. By weighing and analyzing information from different sources, eMarketer provides businesspeople, marketers and advertisers with the most complete view of digital marketing available.
www.eMarketer.com

Media Contact:
Clark Fredricksen
Vice President, Communications, eMarketer
Tel. 212-763-6056
Twitter

Posted on June 20, 2011.    

Facebook Passes Yahoo! in Display Advertising

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Long-Term Display Competition Heats Up With Google

NEW YORK, NY (June 20, 2011)—Facebook will leap over Yahoo! in US display ad revenues this year, while Google will remain the third-largest seller of display ads, with Yahoo! at No. 2, according to a new forecast by eMarketer.

eMarketer estimates Facebook’s share of US online display ad revenues will grow to 17.7% in 2011, up from a 12.2% share last year.

“Facebook’s distinctive form of display advertising is increasingly attracting advertisers. These are mainly smaller companies, and some of them have a strong direct-response focus,” said eMarketer principal analyst David Hallerman. “Google is going after many of the same advertisers to some extent, and this is where one facet of the competition between them will heat up.”

“However, with the vastly different advertising experience each company offers, many marketers will run display ads on both platforms,” he added.

Facebook is expected to see the biggest influx of new display dollars than Google in 2011, with expected growth of $978 million in additional display revenues—more than display revenues will grow this year at Yahoo!, AOL, Microsoft and Google combined.

US display advertising revenues at Google will top $1 billion for the first time in 2011, as the company’s share of overall US display revenues grows to 9.3%, eMarketer estimates. That’s up from an 8.6% share in 2010, when Google’s US display revenues grew an estimated 140.5% to $855 million. By 2012, however, Google will be essentially in a dead heat with Yahoo!, while Facebook will represent about one in five display ad dollars.

“Google’s display revenue gains will come from three main sources: large advertisers that are already Google customers, the range of small or medium-sized businesses that have relied on search for years but are looking to expand their reach, and large-brand marketers looking to YouTube to widen their video advertising reach,” Hallerman said.

Display business at Yahoo!, Microsoft and AOL will also grow this year, although each company’s market share will decline as a result of Google’s and Facebook’s huge rise. Yahoo!’s share of the US display ad market is expected to decline to 13.1% in 2011, down from 14.4% in 2010, eMarketer estimates.

“With a projected 13.6% growth rate in 2011, Yahoo!’s display business is growing nicely—or so it would seem at first glance. But with the total display market set to increase by 24.5% in 2011, supported by even higher gains at Google and Facebook, the growth at Yahoo! looks more like a poor showing than a good one,” said Hallerman.

“That’s a powerful indicator of how vibrant today’s display market is, when a company like Yahoo! can increase revenues by a normally healthy rate yet still lose market share,” he added.

Net US display revenues at Microsoft are expected to grow 18.7% to $602 million in 2011, up from $508 million in 2010—though the company’s share of the overall US market will fall to 4.9%, down from 5.1% in 2010, eMarketer estimates.

Despite AOL’s continued display push, eMarketer estimates US display ad revenues at the company will increase by just $50 million this year, as total display revenues grow 10.5% to $522 million from $473 million in 2010. As a result, the company’s share of overall US display ad revenues is expected to fall to 4.2% this year, down from 4.8% in 2010.

eMarketer forms its forecast though a meta-analysis of reported revenues from major ad-selling companies, results from its benchmark source—the IAB/PwC—and research estimates and methodologies from dozens of firms that track ad spending.

The estimates in this forecast for Facebook advertising revenues were calculated in January 2011, though this revision has adjusted the company’s market share figures downward to account for the dramatic growth forecast in eMarketer’s June 2011 US online advertising estimates, especially in the display category.

About eMarketer
eMarketer is the authority on digital marketing, media and commerce, offering insights essential to navigating the changing, competitive and complex digital environment. By weighing and analyzing information from different sources, eMarketer provides businesspeople, marketers and advertisers with the most complete view of digital marketing available.
www.eMarketer.com

Media Contact:
Clark Fredricksen
Vice President, Communications, eMarketer
Tel. 212-763-6056
Twitter

Posted on June 20, 2011.    

Worldwide Ad Market Approaches $500 Billion

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Asia-Pacific on Trajectory to Overtake North America in Total Ad Spending

NEW YORK, NY (June 13, 2011)—Advertising spending around the world is projected to increase 3.9% this year to more than $494 billion, according to a new forecast by eMarketer. Next year, the firm estimates total ad spending worldwide will reach $525.3 billion.

Total spending on directories, internet, magazines, newspaper, outdoor, radio and TV advertising will continue to grow at steady single-digit rates through 2015, according to the forecast. By that year, advertisers worldwide will be spending almost $600 billion on these media.

Global online ad spending will grow to $80.1 billion in 2011, up 17.2% from $68.4 billion in 2010. The internet’s share of total ad spending will grow to 16.2% this year, and by 2015, online advertising is forecast to make up 22.1% of all ad dollars worldwide.

Asia-Pacific is expected to increase its share of total ad spending worldwide over the next few years, and overtake North America as the worldwide leader in the next five years. eMarketer estimates ad spending in Asia-Pacific will reach $146.3 billion this year, compared to $165 billion in North America. By 2015, however, ad spending in Asia-Pacific will grow to $191.4 billion and a 32% share of global ad spending, while North America will reach just $185.8 billion and a 31.1% share that year.

However, Asia-Pacific still trails the West in terms of online advertising. Online ad spending in North America will reach $33.4 billion in 2011, trailed by Western Europe at $23.1 billion. Online ad spending in Asia-Pacific will reach $19.3 billion this year, and isn’t expected to surpass North America or Western Europe in the current forecasting period.

Total media ad spending in the US is expected to reach $165 billion this year, with online ad spending expected to top $30 billion. The US will lose some share of the global online ad market as other regions grow their spending, but eMarketer still expects nearly two in every five global online ad dollars to be spent in the US throughout our forecast period.

Between 2010 and 2015, Asia-Pacific, Eastern Europe, Latin America, and the Middle East and Africa will all gain share of the online market, though Asia-Pacific is the only one of those regions with significant levels of spending during the forecast. Online ad spending in Asia-Pacific will more than double from $16.4 billion in 2010 to $34.6 billion in 2015, with spending in China alone nearly tripling during that period from $3.7 billion to $11.3 billion.

eMarketer forms its estimates of advertising spending through a meta-analysis of data from dozens of sources, including research firms, ad agencies, investment banks and governmental organizations, as well as an analysis of global trends in the economy and advertising markets.

About eMarketer
eMarketer is the authority on digital marketing, media and commerce, offering insights essential to navigating the changing, competitive and complex digital environment. By weighing and analyzing information from different sources, eMarketer provides businesspeople, marketers and advertisers with the most complete view of digital marketing available.
www.eMarketer.com

Media Contact:
Clark Fredricksen
Vice President, Communications, eMarketer
Tel. 212-763-6056
Twitter

Posted on June 13, 2011.    

eMarketer Webinar: Mobile, Social & Geolocation—Key Trends for Marketers

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To listen and watch playback of the webinar, Mobile, Social & Geolocation—Key Trends for Marketers, click here. You can view the PowerPoint deck below.

View more presentations from eMarketer.

Key takeaways include:

  • How mobile consumers’ usage patterns are changing and what this means for marketers
  • The evolution of location services and key players in the ecosystem
  • How location marketing has moved beyond the check-in and toward the check-out
  • Examples of brands that have successfully tapped into location

About Noah Elkin

Noah Elkin covers trends in mobile marketing, usage, content, devices and commerce. He is co-founder and co-chair of the Emerging Technologies Committee for the Search Engine Marketing Professional Organization and a member of the Interactive Advertising Bureau’s Mobile Advertising Committee. He is in demand as a speaker at digital and industry conferences.

Sponsored by AT&T AdWorks.

Posted on June 9, 2011.    

Online Advertising Market Poised to Grow 20% in 2011

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New Forecast Shows Display on Trajectory to Overtake Search

NEW YORK, NY (June 8, 2011)—The US online advertising market is poised for rapid growth this year, with spending expected to exceed $31 billion, according to a new forecast by eMarketer.

The firm estimates online advertising spending in the US will grow 20.2% to $31.3 billion in 2011, up from $26 billion in 2010, when the market grew 14.9%.

“The internet has become as fundamental as television to advertisers,” said eMarketer principal analyst David Hallerman. “As consumers continue to increase their time spent online and as the resurgent economy continues to bolster ad budgets, we’re going to continue to see an influx of dollars toward the internet. More ad formats, such as video, and more channels, especially social media and mobile, are also key contributors to the spending gains.”

eMarketer, which forms its forecast though a meta-analysis of reported revenues from major ad-selling companies, results from its benchmark source, and research estimates and methodologies from dozens of firms that track ad spending, estimates internet ads will account for nearly 20% of all major media ad dollars spent in the US this year, up from a 17% share in 2010. By 2015, online advertising is expected to make up nearly 28% of total US major media ad spending, compared to TV, whose share of total spending is expected to hover around 38% for the next five years.

eMarketer benchmarks its US online ad spending projections against the Interactive Advertising Bureau (IAB)/PricewaterhouseCoopers (PwC) data, for which the last full quarter measured was Q1 2011.

The increase is largely fueled by a surge in spending on display advertisements, which grew faster than eMarketer expected in its previous forecast from December 2010, when the firm estimated US online advertising would grow 10.5% in 2011.

While search advertising still takes the greatest share of online ad dollars by far, display spending is posting solid gains. Total online display ad spending—including online video, banner ads, rich media and sponsorships—has already brought the category in close range of search. This year, US advertisers will spend $14.38 billion on search ads and $12.33 billion on online display, up 19.8% and 24.5%, respectively, over 2010.

Display will continue to grow at a faster pace than search throughout eMarketer’s forecast period, and display spending is on track to surpass search by 2015.

Display’s rise has been supported by marketers increasingly funneling dollars toward banner and video ads. Advertisers spent an estimated $6.23 billion on banner ads in 2010, a figure that will grow to an estimated $7.61 billion—or 24.3% of total online ad spending—this year, eMarketer estimates. By 2015, banner ad spending is expected to reach $11.73 billion.

“High inventory and lower pricing have made banner and video ads increasingly attractive formats for brand marketers, many of which have seen their online ad budgets grow during the past year,” said Hallerman. “The rise of Facebook has been another prime factor in display ad growth.”

Video advertising is growing faster than all other online ad formats, and this year eMarketer estimates online video will surpass rich media in terms of ad spending. US online video advertising spending will grow 52.1% to $2.16 billion, up from $1.42 billion last year, when the video ad market grew 39.6%.

“Marketers increasingly see the internet as a place where brand advertising, especially in the form of video advertising, is effective,” said Hallerman. “Combined with greater targeting and measurement than marketers get with TV ads, the growing consumption of online video has done more to attract brands than any other online ad format.”

Despite its rapid growth, video’s share of overall online ad spending will reach just 6.9% this year. By 2013, however, video is expected to surpass classifieds and directories in market share—putting video behind only search and banner ads in terms of overall online ad spending.

Search advertising is expected to post strong growth this year as well, though its share of the overall market will inch lower as marketers move dollars toward video and banner ads. eMarketer estimates US search advertising spending will make up 45.9% of overall US online ad dollars this year, down from a 46.1% share in 2010. However, more new dollars will go into search this year and next (over $5 billion) than into banners and video combined (less than $4.4 billion).

The rise of display advertising goes hand in hand with a rise in usage of digital advertising for branding. Online advertising, long considered primarily for direct response marketing, still leans in that direction. But branding is increasing in importance as better ad vehicles develop for this purpose and marketers’ dollars are flowing.

This year, eMarketer projects 39.4% of online ad dollars will be devoted to branding—including banner ads, rich media, sponsorships and video. All other ad formats, including classifieds, embedded email ads, lead generation and paid search, are classified as direct response.

Spending on branding-oriented online ads will grow more quickly than direct-response spending throughout the forecast period, and by 2015, 44.4% of online advertising spending will be devoted to branding.

About eMarketer
eMarketer is the authority on digital marketing, media and commerce, offering insights essential to navigating the changing, competitive and complex digital environment. By weighing and analyzing information from different sources, eMarketer provides businesspeople, marketers and advertisers with the most complete view of digital marketing available.
www.eMarketer.com

Media Contact:
Clark Fredricksen
Vice President, Communications, eMarketer
Tel. 212-763-6056
Twitter

Posted on June 8, 2011.