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Archive for October, 2011

October 28, 2011: eMarketer in the News

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Here are a few of the top stories in which eMarketer data and analysis were featured during the past week or so:

10/23: The Wall Street Journal – Google, Private-Equity Firms Mull Bid For Yahoo
Google Inc. has talked to at least two private-equity firms about potentially helping them finance a deal to buy Yahoo Inc.’s core business, according to a person familiar with the matter. Read more.

10/24: Forbes – Google’s Playing With Antitrust Fire If It’s Courting Yahoo
A rumored move by Google to possibly finance a buyout of Yahoo’s core business so that it can A) sell ads across Yahoo’s websites or B) raise the purchase price for its rivals would be recklessly incendiary. Read more.

10/19: The Financial Times – Yahoo beats low expectations amid turmoil
Yahoo’s profits fell 26 per cent in the third quarter of 2011 compared to a year before but still beat analysts low expectations, sending its shares higher amid the most tumultuous period in its history. Read more.

10/19: Bloomberg – Yahoo Climbs as Profit Beats Estimates on Internet-Ad Demand
U.S. online ad spending is expected to grow 20 percent this year to $31.3 billion, according to eMarketer Inc. Yahoo’s share of display ads, including banners, will be 13.1 percent this year in the U.S., down from 14.4 percent last year, estimates eMarketer. Facebook’s share will climb to 16.3 percent, up from 12.2 percent. Read more.

10/25: Fortune – Turning social media into company assets
No wonder, then, that eMarketer says that nearly 90% of all Americans get their product information from trusted sources like families and friends, or that McKinsey believes that word of mouth is the primary factor behind 20% to 50% of all the purchase decisions we make. Read more.

10/24: AdWeek – For Advertisers, Older People Are the New Youth
Now that advertisers have realized that older consumers are worth targeting—it helps that they’re one of the few groups that still has money to spend—the AARP is launching a new online network to chase those dollars. Read more.

10/18: Advertising Age – As Online Ad Spending Grows, Yahoo Is Not Sharing in the Bounty
While Yahoo’s third-quarter earnings contained no surprises, they also did nothing to lift the dark cloud hovering above the internet giant. Read more.

For more of eMarketer’s recent news coverage, click here.

Posted on October 28, 2011.    

eMarketer Webinar: Mobile Advertising and Marketing—Key Trends and Benchmarks

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To listen and watch playback of the webinar, Mobile Advertising and Marketing—Key Trends and Benchmarks, click here. You can view the PowerPoint deck below.

View more presentations from eMarketer

The webinar addresses the following key questions:

  • What are the outlook and growth trajectory for mobile advertising and marketing?
  • Which formats show the most promise?
  • How are smartphone and tablet adoption shaping the mobile marketing landscape?

About Noah Elkin

Noah 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 Savvis.

Posted on October 28, 2011.    

Holiday Ecommerce Sales to Grow 16.8% to $46.7 Billion in 2011

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Influx of online buyers, mobile shoppers impacts holiday sales

NEW YORK (November 17, 2011)—The promise of convenience and cost savings online will bring more consumers than ever to shop on the web for the holidays, spending a greater share of their gift budget there than they have in previous years, according to a new forecast by eMarketer.

eMarketer estimates US retail ecommerce holiday sales will rise 16.8%—more than five times as fast as total retail industry growth—to $46.7 billion in 2011, up from $39.9 billion in 2010. That means online sales growth will reach double digits for the third consecutive year, even though the economy remains shaky and consumers are keeping tight budgets.

“Ecommerce has been insulated from the lingering effects of the recession and has even benefitted from price-conscious consumers’ reliance on the internet to save money,” said Jeffrey Grau, eMarketer principal analyst and author of the new report, “Online Holiday Sales Forecast: Savings and Convenience Will Drive Strong Growth.”

By comparison, eMarketer believes total retail sales in the US will see meager growth of about 3% this holiday season.

eMarketer defines the holiday season as November and December. Holiday season sales refer to all retail spending—purchases either related or unrelated to the holidays—which does not include online travel sales.

“The reasons for spending more online are the same ones that attract new holiday shoppers to ecommerce: convenience and savings,” added Grau. “Many consumers will time their holiday purchases around retailers’ key promotional dates and free shipping offers, in addition to looking for retailers’ promotions on social networks and rely on daily deal sites to find experiential gifts that they can enjoy with friends and family.”

Strong online holiday spending, in turn, will boost ecommerce sales to $195 billion for the year, up 16.5% over 2010. Holiday sales will account for almost a quarter (23.9%) of online sales in 2011, underlining the importance that November and December have on many retailers’ annual ecommerce sales.

As a result of strong growth, ecommerce’s share of total retail sales is gradually increasing, with the biggest gains taking place during the holiday season. In 2010, ecommerce accounted for 5.7% of sales from January through October, but jumped to 7.4% for the holiday season, eMarketer estimates.

“The holiday shopping season has assumed the character of a scrimmage, where consumers and retailers jockey for the upper hand,” said Grau. “Retailers must fire on all cylinders to ensure they get their share of holiday spending from such savings-savvy consumers.”

Online holiday sales will also get a boost from smartphone and tablet users, Grau said.

“Mobile shoppers are having a noticeable influence on holiday sales,” added Grau. “Given the fast growth in device ownership—especially tablet ownership—it is likely that retailers will report significant online sales coming from mobile users this holiday season.”

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 October 17, 2011.    

October 14, 2011: eMarketer in the News

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Here are a few of the top stories in which eMarketer data and analysis were featured this week:

10/11: The Wall Street Journal – LocalResponse Raises $5 Million For Its Twitter Ads
Mobile analyst with eMarketer, Noah Elkin, worries about the privacy issues as well as Twitter marketing fatigue. “Is there a risk of that fatigue? Certainly,” said Elkin. “But I think the larger point is…are you providing something consumers want and are you providing it at the right time when they want it and when they can use it?” Read more.

10/14: The New York Times – YouTube Makes the Case That It Helps Build Brands
Advertisers spend just $2.2 billion on all online video ads, compared with $60.5 billion on television ads, according to eMarketer, a research firm, and ad agencies are only now hiring people with expertise in online video. According to an estimate by Citigroup, YouTube will contribute 5 percent of Google’s total annual revenue in 2011. Read more.

10/10: Advertising Age – Facebook on the hunt for more tentpole deals with marketers
According to eMarketer, Facebook’s 2011 online ad revenue share is 6.4%, compared to Google’s 40.8%, even though the social network commands the largest time spent online and shows more display ads than anyone else, according to ComScore. Read more.

10/9: The New York Times – News From The Advertising Industry
Spending in the United States for mobile advertising this year will increase to $1.2 billion, from $743 million last year, according to a forecast by eMarketer, New York. Read more.

10/11: Fast Company – In Mobile, Majority Of Ad Impressions And Clicks Come From Tablet Users
The iPad might only be 18 months old, but she and her Android siblings are getting users to pay attention and click. Tablets are also taking the lion’s share of mobile advertising dollars. Read more.

10/11: USA Today – Zynga announces ‘CastleVille,’ 9 other titles
eMarketer analyst Paul Verna said the product deluge “demonstrates they are healthy today and ready for the future,” as Zynga nears a multibillion-dollar IPO bid. Read more.

10/14: Forbes – Google’s Earnings Spotlight Its Antitrust Liabilities
eMarketer estimates Google’s search advertising revenue share to be ~80%, and Google’s dominant size combined with its huge advertising revenue growth differential, will mean Google will soon dominate more than half of all U.S. online advertising as the IAB quantifies the market. Read more.

10/14: Bloomberg BusinessWeek – Google Gains as Advertising Demand Helps Sales Top Estimates
Google, which makes most of its money from search ads, should take 76 percent of the U.S. market this year, up from 74 percent in 2010 and 70 percent in 2009, according to research firm EMarketer Inc. Read more.

10/10: The Los Angeles Times – Wal-Mart fans on Facebook can now connect to local stores
Wal-Mart has struck a partnership with Facebook to help its 9 million fans on the social networking service connect with their local stores just in time for the all-important holiday shopping season. Read more.

For more of eMarketer’s recent news coverage, click here.

Posted on October 14, 2011.    

eMarketer Webinar: Reaching the Right Audience—Ad Targeting Trends

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David Hallerman

To listen and watch playback of the webinar, Reaching the Right Audience—Ad Targeting Trends, click here. You can view the PowerPoint deck below.

View more presentations from eMarketer

The webinar addresses these key questions:

  • What ad targeting methods are most effective?
  • How can marketers best blend audience and content targeting?
  • How can marketers best use data to identify the right audience?
  • How does testing and measuring improve relevancy?

About David Hallerman

David Hallerman is eMarketer’s expert in US online advertising and marketing, covering internet ad targeting, search and display advertising, email marketing, online video advertising and ad spending across media. He is frequently quoted in top business publications and broadcast programs.

Sponsored by Undertone.

Undertone

Posted on October 14, 2011.    

New Report by eMarketer Highlights Marketing and Consumer Trends in 36 Markets Worldwide and 6 Major Regions

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eMarketer expects high client interest for 2011 Global Media Intelligence report

NEW YORK (Oct 13, 2011)—eMarketer, in collaboration with Starcom MediaVest Group (SMG), today released its annual Global Media Intelligence report, which provides data, insights and analysis for brands to use as they plan media budgets and strategy for 2012.

The “2011 Global Media Intelligence” (GMI) report covers six major regions worldwide—Asia-Pacific, Eastern Europe, Latin America, Middle East and Africa, North America, and Western Europe—and provides snapshots of 36 countries identified as core markets.

“I’m excited to have eMarketer’s latest ‘Global Media Intelligence’ report again this year,” said Linda Dorman, VP of Global Strategy at Experian. “It’s another example of the excellent global data and perspective eMarketer provides our company every day.”

The report includes data on demographics, broadband and mobile penetration, media usage, and consumer behavior in each region, as well as insights on digital and total media advertising spending trends through 2015.

Key findings include:

  • In several major markets—including the US and UK—the specter of a double-dip recession is casting a dark shadow over businesses and consumers. Regardless, global ad spending will still approach $500 billion this year, eMarketer estimates, and digital advertising will remain a star performer following a 2010 in which growth in online ad spending outpaced all other platforms in most mature markets.
  • eMarketer estimates North America will continue to draw the greatest share of online advertising spending of any region, with over 40% of the worldwide total. Western Europe’s share of online spending will decline as emerging markets in Asia-Pacific, Latin America and Eastern Europe up spending.
  • 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.
  • Mobile devices are transforming the media landscape in every corner of the world. For instance, within four years, mobile phone penetration in Asia-Pacific will climb from an estimated 55.4% to nearly 73%, and the region will boast an eye-popping 2.9 billion mobile phone users.

“We’re thrilled to work with eMarketer again to provide global digital insights to our clients, and help them more effectively plan and allocate dollars through digital channels around the world,” said Kate Sirkin, Executive Vice President of Research at Starcom MediaVest Group.

SMG helped identify and gather data for local and core global markets included in the report.

After seeing record interest among marketers for the “2010 Global Media Intelligence” report published last year, eMarketer hopes the new report will help marketers more effectively plan their marketing mixes and allocate budget toward digital channels during the coming year.

“The ‘2010 Global Media Intelligence’ report was one of the most popular reports we’ve ever produced,” said eMarketer President Lisa Church. “We’re very pleased to be able to deliver the report again this year with even more relevant insights on digital markets around the world.”

“We expect massive interest again among our client base, especially as most are currently in the process of finalizing their media strategies for 2012,” added Church.

The 2011 GMI report has already been downloaded by more than 1,200 eMarketer clients.

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 October 13, 2011.    

October 7, 2011: eMarketer in the News

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Here are a few of the top stories in which eMarketer data and analysis were featured this week:

10/6: The Wall Street Journal – Fever Breaks for Facebook Shares
The once-dizzying rise in the value of privately owned Facebook Inc. has slowed, a sign the social network hasn’t been immune to broader market volatility or the weakness in the global economy. Read more.

10/2: The Financial Times – AOL independence rules over deals
According to eMarketer, AOL will have 4.2 per cent of the $12.3bn US online display advertising market this year, a figure that is declining and behind Facebook, Yahoo, Google and Microsoft. Read more.

10/3: Bloomberg – Google Takes Page From Sunday Newspaper With New ‘Circulars’ Internet Ads
Google will grab 76 percent of the U.S. market for search- based ad revenue this year, up from 74 percent in 2010, according to estimates from EMarketer Inc. in New York. Next year, Google may expand to 78 percent, the research firm said. Read more.

10/3: Advertising Age – Amazon Sets Kindle Fire to Sell Media
“Even if Amazon loses money on each, they are going to make it back through selling more content through the lifetime of the device,” said Noah Elkin, analyst at eMarketer. Read more.

10/6: Reuters – AOL, Yahoo, Demand Media set sights on the ladies
According to eMarketer, the CPG segment is poised to spend almost $2.5 billion in online advertising in the United States this year, more than doubling to $5 billion by 2015. Read more.

10/3: The Wall Street Journal – Facebook’s Brand of Loyalty
Companies have spent the past few years trying to amass Facebook fans for their products and services. Now they’re trying to figure out how to squeeze value out of them. Read more.

10/4: Paid Content – U.S. Mobile Ad Spend To Pass $1 Billion For The First Time
Mobile advertising is still a small and young business when you compare it to how much money goes into digital—let alone offline—advertising and marketing campaigns. But there are some clear signs of it growing up fast: eMarketer says the U.S. is on track to have its first year of $1 billion-plus in mobile ad revenues. Read more.

10/5: TechCrunch – Global Ad Revenues from Social Networks to Reach $5.4B in 2011; $10B in 2013
Ad revenue from social networks worldwide is expected to reach $5.54 billion this year, according to eMarketer estimates, and will double by 2013. Read more.

10/6: CNBC – Apple’s Investors Wonder If Firm’s Best Days Are Over
Last year, Apple held 28 percent of the smart phone market, second only to a rapidly deteriorating Research In Motion at 30 percent and followed closely by fast-growing phones running Google’s Android system with 24 percent market share, according to eMarketer. Read more.

10/4: MarketWatch – Mobile ads to top $1B for first time: eMarketer
Mobile advertising expenditures will top $1 billion for the first time in 2011, and hit $4.4 billion by 2015, according to the latest forecast issued on Tuesday by research firm eMarketer. Read more.

For more of eMarketer’s recent news coverage, click here.

Posted on October 7, 2011.    

Social Network Ad Revenues to Reach $10 Billion Worldwide in 2013

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LinkedIn ad revenues estimated at $140.8 million this year

NEW YORK (Oct 5, 2011)—The rapid growth of Facebook and Twitter will push worldwide social network ad revenues to $5.54 billion this year and nearly $10 billion in 2013, according to a new forecast by eMarketer.

“Social networks have cemented their place in advertising,” said eMarketer principal analyst Debra Aho Williamson. “More marketers than ever believe their brands should be engaging with consumers on social networks—and advertising is an increasingly successful tool for doing so.”

The bulk of these dollars, in the US and around the world, will go to Facebook, while a much smaller share will go to Twitter and other social networks. eMarketer’s first forecast of ad revenues for LinkedIn predicts the site will account for 3% of worldwide social network ad revenues this year. The site has more than tripled its ad dollars in two years, though growth is tapering off.

“Facebook will get nearly seven out of every 10 dollars spent on social network advertising worldwide in 2011,” said Williamson. “Twitter’s share will be around 3%.”

Social network advertising spending in the US will reach $2.74 billion this year, but more rapid growth elsewhere will mean spending outside the country will account for a slightly greater share each year, eMarketer estimates.

By 2013, non-US revenues will make up 51.9% of the total. In the US, social networks will make $4.81 billion from ads that year.

eMarketer had previously forecast in January 2011 that social network ad revenues worldwide would reach $5.97 billion in 2011, up 71.6% from $3.48 billion in 2010. This downward revision is mostly the result of eMarketer’s slightly lower estimate for worldwide ad revenues at Facebook—which comes as some advertisers are still cautious about Facebook’s low clickthrough rates and others feel they can successfully engage consumers without advertising on the site.

“As with eMarketer’s Facebook forecast, the revision should not be taken as a sign that social network advertising in general is losing momentum,” said Williamson.

Social network ad revenues worldwide are expected to grow 55.6% this year, eMarketer estimates, and 8.8% of online ad dollars in the US and 6.9% worldwide will go to social networking sites. By 2013, social network ad revenues will make up 11.7% of all online ad spending in the US and 9.4% around the world.

eMarketer forms its estimates of social network ad revenues based on a meta-analysis of estimates of consumer usage, marketer usage, ad pricing and impressions, as well as revenue estimates from research firms and other sources, and from interviews with industry executives.

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 October 5, 2011.    

US Mobile Ad Spending to Top $1 Billion for First Time in 2011

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Smartphone, mobile internet adoption make mobile audience increasingly attractive to advertisers

NEW YORK, NY (Oct 4, 2011)—Spending on mobile advertising—long a bit player in the digital media mix—will top $1 billion in the US for the first time this year as smartphone adoption and rising mobile internet usage have made the market more attractive to advertisers.

Advertisers will spend nearly $1.23 billion on mobile advertising this year in the US, up from $743 million last year, according to a new forecast by eMarketer. By 2015, the US mobile advertising market is set to reach almost $4.4 billion. This includes spending on display ads (such as banners, rich media and video), search and messaging-based advertising, and covers ads viewed on both mobile phones and tablets.

eMarketer previously forecast in September 2010 that US mobile advertising spending would hit $1.1 billion in 2011, and reach $2.5 billion in 2014. This revision features significantly higher growth levels throughout the forecast period.

“After the consolidation that took place at the end of 2009 and beginning of 2010, this year has been about setting mobile up for significant growth in 2012 and beyond,” said eMarketer principal analyst Noah Elkin.

The rise in mobile spending has been prompted, in part, by the rapid growth of smartphone and mobile internet usage. By the end of this year, 38% of US mobile users will have a smartphone and 41% will use the mobile internet at least once each month, eMarketer estimates.

“The rapidly expanding smart device and mobile internet user populations make advertising on the mobile web and in apps more of an imperative than ever,” said Elkin.

This year, messaging-based formats still take the largest piece of the pie, accounting for $442.6 million in spending. But in 2012, banners and rich media will be even with search, each getting 33% of spending, or $594.8 million. That will put them ahead of messaging, which will fall to just 28.2% of all mobile ad spending next year. By 2015, banners and rich media and search will dominate further, and messaging will have shrunk to 14.4% of the total—though still growing in terms of dollars.

“Even with Android and Apple setting the pace, marketers will still need cross-platform advertising solutions to reach the bulk of smart device users,” said Elkin.

Video is the fastest-growing mobile ad format, but from the smallest base. Mobile video ad spending, at $57.6 million this year, will grow at a compound annual rate of 69% between 2010 and 2015 to reach $395.6 million.

eMarketer bases its mobile advertising spending forecast on a meta-analysis of mobile advertising estimates from research firms, company data from major mobile ad networks and vendors, and smartphone and tablet usage trends. eMarketer also interviewed industry executives about their mobile strategies and spending outlook.

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 October 4, 2011.