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Archive for September, 2012

Abu Dhabi Media Summit

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October 9-11, 2012 – Abu Dhabi, UAE

eMarketer Chairman Geoff Ramsey will give the opening presentation on Wednesday, October 10, entitled “How Wired?”

About the Abu Dhabi Media Summit

The Abu Dhabi Media Summit is an unprecedented gathering of the people and companies driving the transition to a fully networked new world. The three-day event features a unique combination of high-profile public sessions, closed-door discussions and private conversations, bringing together top-tier global media players and their emerging-market counterparts. Targeted sectors include mobile, broadband, traditional television, print, entertainment, news, music, advertising & marketing, venture capital & equity finance, with special emphasis on the Middle East, the Indian Subcontinent, East Asia and China. Selected entrepreneurs and start-up companies are also featured, bridging the gap between established and disruptive entrants. Simultaneously eclectic, wide-reaching and exclusive, ADMS has quickly established itself as an essential date on the global media leadership calendar.

The Summit is held under the Patronage of H.H. General Sheikh Mohammed Bin Zayed Al Nahyan Crown Prince of Abu Dhabi and Deputy Supreme Commander of the United Arab Emirates Armed Forces.

About eMarketer Chairman Geoff Ramsey

Geoff Ramsey is one of the most exciting visionaries in digital marketing today. As the chairman of eMarketer, Geoff is not only on the cutting edge of research trends and best practices, but he offers a rich understanding and big-picture perspective of the digital landscape and its impact on marketing and media.

A highly regarded speaker, Geoff keynotes at major industry events around the globe, as well as at Fortune 100 corporations including Google, Yahoo! and Visa. He is frequently quoted in The Wall Street Journal, Forbes, BusinessWeek and Advertising Age.

In 2011, Geoff received the ad:tech Industry Achievement Award, which honors individuals in the digital marketing space who have demonstrated consistent outstanding service, generated breakthrough ideas and fostered industry growth. His book, Digital Impact: The Two Secrets to Online Marketing Success (Wiley, 2011), co-authored with Vipin Mayar, has earned critical praise from industry leaders.

Posted on September 26, 2012.    

Announcing eMarketer Visitor Survey Results and New Benefits for Advertisers on eMarketer.com

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There are two exciting developments to announce to eMarketer advertisers today. First, please take a look at eMarketer.com, redesigned and officially launched today. The facelift keeps the site uncluttered – maintaining our focus on the content that consistently keeps our visitors and advertisers coming back for more.

In addition to a beautiful new look and feel, the new site also provides a fresh overview of the eMarketer corporate subscription, featuring examples of why companies rely on eMarketer every day for coverage of major regions around the world. Read more about today’s website updates.

I’d also like to share the results of our annual readership survey, today’s second announcement.

The results indicate that eMarketer continues to provide advertisers with powerful vehicles for reaching a valuable target audience—99% of whom said they found the eMarketer Daily Newsletter useful.

This audience is also very devoted: three-quarters read the eMarketer Daily Newsletter at least three times per week, including 43% who read it daily. Three-quarters are also top executives, including managers as well as members of the C-suite. Four in five readers play some role in their company’s purchase process, and more than 81% said they will either be purchasing or recommending the purchase of advertising- or technology-related products and services for their company in the next year.

The top purchases planned are for paid online media (64%), social media (60%), mobile (54%), email marketing (52%) and web or marketing analytics solutions (51%).

ADVERTISING HIGHLIGHTS:

  • Bigger and better ad units on the redesigned eMarketer.com – 970×90 Super Leaderboard, plus more rich media options including IAB Display Rising Star units, Pushdown and Sidekick.
  • For 2013, we have some exciting new content-related sponsorships. Please call to discuss the options.
  • Thank you to the close to 100 companies who have advertised with eMarketer in 2012 – so far! Check out our updated media kit to see what some of them have to say.

We’d love your feedback on the new site and welcome the opportunity to talk with you in greater detail about our survey results and about how we can work together in the coming months. If you don’t receive the eMarketer Daily Newsletter, please sign up today.

– Crystal Gurin, VP and Publisher

Posted on September 25, 2012.    

eMarketer: Magazines to See Positive Ad Spending Growth in 2012

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Newspapers not so lucky as declines continue

NEW YORK, NY (September 25, 2012)—Although both newspaper and magazine publishers are encouraged by positive trends in device adoption and consumer behavior, the continued growth of digital ad revenues has not yet made up for declines in print ad revenue for newspapers.

But it has for magazines.

According to new estimates from eMarketer, US ad revenue growth at magazines is expected to increase from 1.9% in 2011 to 2.6% this year, as revenue reaches $18.33 billion.

Print ad revenues at magazines will increase marginally to $15.19 billion in 2012 from $15.15 billion in 2011, according to eMarketer. In the same period, digital ad revenues are expected to grow to $3.14 billion from $2.72 billion.

The new forecast for 2012 US magazine ad revenue is marginally down from eMarketer’s previous estimate of $18.65 billion from January 2012—a result of slightly slower growth than previously expected.

At newspapers, the picture isn’t quite as rosy. US newspaper print ad revenues are expected to drop significantly in the coming years, slipping to $16.4 billion in 2016 from $19.14 billion in 2012. Digital revenues, which include all digital platforms, will edge up to $4 billion from $3.4 billion, so they will not cover losses from print.

eMarketer previously projected in January that US newspaper ad spending would reach $23.1 billion this year. The new forecast has been revised slightly downward based on faster-than-expected declines reported by eMarketer’s benchmark source, the Newspaper Association of America, for which the last full year measured was 2011. The newspaper figures include classifieds, national and retail advertisements.

eMarketer forms its estimates through an analysis of various elements related to the newspaper and magazine ad spending market, including macro-level economic conditions; historical trends of the advertising market; historical trends of each medium in relation to other media; reported revenues from major ad publishers; estimates from other research firms; consumer media consumption trends; and eMarketer interviews with executives at ad agencies, brands, media publishers and other industry leaders.

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 September 25, 2012.    

eMarketer Redesigns Website

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After a few days of testing, we officially launched a new look today for eMarketer.com, and now it’s easier than ever to learn how eMarketer can help your business.

The new site features examples of eMarketer’s rapidly expanding coverage of major regions and fast-emerging markets around the world, including the United Kingdom and Europe, China, Brazil, India, Indonesia, and dozens more.

Get an overview of eMarketer’s coverage, or explore sample coverage of specific regions:

Asia-Pacific
Eastern Europe
Latin America
Middle East & Africa
North America
Western Europe

You can also read about eMarketer’s expanding, dedicated coverage of vertical categories such as:

Automotive
Consumer Products
Financial Services
Healthcare & Pharma
Media & Entertainment
Retail
Travel

In addition, you can get a better sense of how companies use information from eMarketer, and understand why corporate subscribers—which now include two-thirds of Fortune 500 brands—rely on eMarketer every day. If you’re curious how companies access this information, check out the eMarketer corporate subscription platform. It’s incredibly easy to use, and the most convenient way to build your knowledge of the digital marketplace—anytime, anywhere.

The site also now has several new opportunities for advertisers in the Articles section of the site, including bigger and better ad units on the redesigned eMarketer.com – 970×90 Super Leaderboard, plus more rich media options including IAB Display Rising Star units, Pushdown and Sidekick. Sign up for the eMarketer Daily Newsletter for a free inside look at our coverage of digital marketing and media trends. Read more about eMarketer’s audience and advertising opportunities.

If you need a refresher on what eMarketer is all about, take 60 seconds to get up to speed in our updated About section. Corporate subscribers can log in to our client website here.

— Cerelle Centeno, Director, Digital Marketing

Posted on September 25, 2012.    

Google to Become US Display Ad Leader

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Strong growth for Facebook and Google expected as others see shares shrink

NEW YORK, NY (September 20, 2012)—Google will earn more US display advertising revenues than any other company this year, topping the market with 15.4% share, according to new estimates by eMarketer.

The milestone means Google now holds more share than any other company in each of the US search, display and mobile advertising markets.

Google is expected to take home $2.31 billion in US display ad revenues this year, up 38.5% from $1.67 billion in 2011, eMarketer estimates. Facebook, by comparison, will earn $2.16 billion in US display ad revenues this year, up 24.4% from $1.73 billion last year. Yahoo!—the longtime leader before Facebook topped it last year—will see its share fall further.

This year, the overall US display ad market will grow 21.5% to $14.98 billion from $12.33 billion in 2011, eMarketer estimates, driven by the expansion of both Google and Facebook as advertising platforms; the continued health of banner spending due to expansion of inventory, aided by mobile growth; and increased spending on digital video advertising, especially YouTube.

Behind the Numbers

The overall forecast for display has been slightly reduced from the previous forecast to reflect the mix of lower prices for display advertising on ad networks combined with the reluctance of some major brands to make extra-large investments in digital display advertising. Display figures released by the IAB/PwC for the full-year 2011 also came in slightly lower than expected.

There are several factors underpinning Google’s ascent to market leader, including the continued strength of its ad network, video advertising on YouTube and mobile display advertising on AdMob.

However, the company’s newfound lead also comes as Facebook ad revenues have fallen short of expectations set in February, when eMarketer predicted US display revenues at Google would trail Facebook just slightly this year. eMarketer cut its ad forecast for Facebook earlier this month.

Still, it’s important to keep in mind that display growth at both companies is strong—and far stronger than other major display sellers. Combined, Google and Facebook will represent just below 30% of total display ad revenues by the end of 2012. This is expected to climb to 37% in 2014 as the two companies shut smaller platforms out of the market—despite a fragmented display marketplace, especially among mobile ad publishers and networks.

Yahoo! will account for 9.3% of total display ad revenues this year, while Microsoft and AOL will each make up less than 5% of the total, eMarketer estimates. These three companies will decrease in share as Google and Facebook expand.

eMarketer bases its estimates for US display advertising spending and market share on an analysis of reported revenues from company releases; estimates from other research firms on advertising revenues, pricing, impressions and other factors; usage trends at major ad publishers; eMarketer interviews with executives at ad agencies, brands, online ad publishers and other industry leaders; and figures from the Interactive Advertising Bureau and PricewaterhouseCoopers, its benchmark source for overall digital advertising revenues, for which the last full year measured is 2011.

These figures represent net US display ad revenues after traffic acquisition costs to partner sites and publishers have been factored out, and include advertising that appears on desktop and laptop computers as well as mobile phones and tablets.

Display Formats

This year, display ad spending growth will outpace that of paid search ad spending, driven by digital video advertising and sponsorships. At a 46.5% growth rate, digital video ad spending will continue to post the strongest gains—though it is starting from a much smaller base. Online and mobile video viewing are becoming increasingly popular. According to eMarketer forecasts, more than half of the US population will view video content through desktop or mobile devices in 2012.

The growth of rich media ad spending has also surpassed eMarketer’s earlier predictions and has been increased to 10.1% from 4.1%. Many marketers view rich media as more fitting for mobile platforms than on desktop and more effective than banner or video advertising on mobile devices.

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 September 20, 2012.    

US Digital Ad Spending to Top $37 Billion in 2012 as Market Consolidates

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Google alone to account for 41.3% of total US digital ad revenues in 2012

NEW YORK, NY (September 20, 2012)—eMarketer estimates that marketers will spend $37.31 billion on digital advertising in 2012. Digital ad spending will rise 16.6% this year, and will experience double-digit growth through 2014.

Combined, Google, Yahoo!, Microsoft, Facebook and AOL will take in $23.9 billion in ad revenues, representing nearly two-thirds of total digital ad spending this year.

At $15.41 billion, Google’s ad revenue alone will account for 41.3% of total digital ad revenues in 2012. Google will see slightly slower growth than eMarketer estimated earlier this year, as the company’s ad revenues for the first two quarters of 2012 were a bit lower than expected.

Despite this factor, Google’s growth will reach 20% in 2012 and remain in the double digits through 2016. By 2014, marketers will spend more than $20 billion on Google advertising, while digital ad revenue at Yahoo!, Microsoft and Facebook will each total just over $3 billion.

Overall US Digital Ad Spending

Based on the Interactive Advertising Bureau’s (IAB) data for the first quarter of 2012, and because the digital ad spending market is approaching maturity faster than expected, eMarketer has lowered the projected rate of increase for US digital ad spending slightly from its earlier forecast of 17.7% in 2012. However, eMarketer’s outlook remains optimistic—despite slower percentage gains, big dollar growth will continue.

By looking at the estimates of multiple research firms projecting US digital ad spending, digital advertising is indisputably becoming a bigger part of total media ad spending. Most research firms forecasting US digital ad spending for 2012—including eMarketer—agree revenue will exceed $35 billion this year, though many have varying definitions and methodologies.

US Digital Ad Spending, by Format

Search continues to be the leading digital ad spending format, although its share will begin to drop this year as the shares of rich media, sponsorships and video increase.

Display ad spending, which includes banner ads, video, rich media and sponsorships, will rise from 40.2% of total digital ad spending in 2012 to 45.6% of the total in 2016. Search’s share of total digital ad spending will decrease from 47.1% in 2012 to 44.2% in 2016. Combined, spending on paid search and display advertising will account for more than 87% of all US digital ad spending this year.

This year, display ad spending growth will outpace that of paid search ad spending, driven by digital video advertising and sponsorships. At a 46.5% growth rate, digital video ad spending will continue to post the strongest gains—though it is starting from a much smaller base. Online and mobile video viewing are becoming increasingly popular. According to eMarketer forecasts, more than half of the US population will view video content through desktop or mobile devices in 2012.

Ad Revenues at Major Ad Publishers and Networks

Managerial changes, new company focus and adequate results in the first two quarters of 2012 have led eMarketer to raise the forecast for Yahoo! from a 4.7% decline to 1.7% growth for 2012. Growth will remain relatively flat through 2014. Yahoo! holds the second-largest share of digital ad revenues, at 8.4% of the total. Its share will decline throughout the forecast period as the shares of Facebook and Microsoft increase.

Despite Microsoft’s growing share of digital ad revenue, its Online Services Division, which manages digital advertising (including Bing and MSN), has reported an operating loss for 17 quarters in a row. While Microsoft’s increasing search ad revenue share is an indication of shifts in the overall search advertising market, it is a less accurate depiction of the company’s overall performance in the digital space.

Facebook will experience the fastest growth of digital ad revenue this year, though eMarketer has cut 2012’s forecasted growth in half, to 24.4%, from its earlier estimate. Facebook underperformed eMarketer’s expectations in both Q1 and Q2, and questions have been raised about the effectiveness of some of the site’s ad products—especially its Premium ad offerings—as some high-profile brands have dropped their efforts on the site.

Methodology and Definitions

eMarketer bases its estimates for US digital advertising spending and market share on an analysis of reported revenues from company releases; estimates from other research firms on advertising revenues, pricing, impressions and other factors; usage trends at major ad publishers; eMarketer interviews with executives at ad agencies, brands, online ad publishers and other industry leaders; and figures from the Interactive Advertising Bureau and PricewaterhouseCoopers, its benchmark source for overall digital advertising revenues, for which the last full year measured is 2011.

The figures for individual companies represent net US ad revenues after traffic acquisition costs to partner sites and publishers have been factored out, and include advertising that appears on desktop and laptop computers as well as mobile phones and tablets.

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 September 20, 2012.    

Savvy Shoppers Drive Robust Online Holiday Sales

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Online holiday shopping will account for nearly a quarter of retail ecommerce sales for 2012

NEW YORK, NY (September 14, 2012)—Despite an economy that continues to be tough for many consumers, another strong US online holiday shopping season is taking shape, finds a new report from eMarketer. Consumers will turn to the internet to stay within their budgets, locate hard-to-find gifts and avoid crowded stores.

The new report, “Online Holiday Shopping Forecast and Trends,” analyzes findings from dozens of third-party research providers and interviews with industry executives, answering key questions including:

  • What is the sales outlook for the 2012 online holiday shopping season?
  • How are shoppers and retailers extending the online holiday shopping season?
  • What percentage of online holiday shoppers researches purchases online before buying in-store?

US retail ecommerce holiday sales (excluding travel) will reach $54.5 billion in 2012, up 16.8% over last year, according to eMarketer estimates.

This will be the fourth consecutive year that online holiday sales (defined as sales in November and December) post annual growth in the mid-to-high teens, after plummeting 8.2% in 2008 during the depths of the Great Recession.

Overall ecommerce retail sales for the year will be disproportionately influenced by the holiday season. eMarketer expects online holiday sales to account for nearly a quarter (24.3%) of the $224.2 billion in US retail ecommerce sales forecast for all of 2012.

“To reach price-driven and less loyal consumers during the peak season, retailers are offering limited-time branded sales events, in addition to event days like Cyber Monday,” said eMarketer. “Large discounts can generate word-of-mouth on social networks, and retailers can stoke this excitement by promoting these events and even offer exclusives to their fans via Facebook and Twitter.”

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 September 14, 2012.    

Consumers Take Control of Food and Beverage Content Online

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Brands Leverage User-Generated Content for Greater Engagement

NEW YORK, NY (September 7, 2012)— A new eMarketer report finds that consumers turn to digital media when they want to share food and drink experiences, and it’s also where they look for meal inspiration and solutions from people like themselves. Brands that want to connect with users on a more human scale can leverage this naturally occurring behavior.

The new report, “User-Generated Food and Beverage Content: Satisfying a Hunger to Create and Share,” analyzes findings from dozens of third-party research providers and interviews with industry executives about how food and beverage brands can better harness user-generated content for consumer engagement, answering key questions such as:

  • What types of food and beverage content are users creating and seeking?
  • Why are real people important in food and beverage marketing?
  • How can brands leverage user-generated content?

What was once niche—taking photos of food and writing about meals online—is transforming into a mainstream activity. In May 2012 Compete found that food was by far the leading topic category for interactions on image-sharing site Pinterest.

For a substantial number of users, discovery led to conversion: 25% overall had bought a product after discovering it on Pinterest, and surprisingly, considering Pinterest’s reputation as a female stronghold, 37% of male users were spurred to buy, compared to just 17% of female users.

In addition to photos, user-generated recipes are one of the most sought-after pieces of food content online, and recipe sites are also highly influential on purchase decisions. Allrecipes.com, a site that mixes user-submitted recipes with ones from brands conducted a survey that found that 58.3% of internet users favored dedicated recipe sites when looking for recipes online. And when asked to choose one cooking aid for life, websites took the top spot (44%) over cookbooks, parents and recipe cards from family and friends.

Also according to Allrecipes.com, 65% of females who regularly used recipe sites bought branded ingredients called for in the recipes at least sometimes. Twenty-one percent said they “usually” did this. Additionally, recommendations from online recipe sites were the biggest online driver of food purchases among both food bloggers and general internet users in a 2012 BlogHer survey.

Marketers can leverage this user-generated content by tapping into the latest social sharing trends, such as Instagram and Pinterest, and incorporating consumer content with their own posts. Contests utilizing the brand’s products, such as bake-offs or themed dinner parties draw consumers in while highlighting all the ways in which the product can be used.

“When it comes to making product decisions, consumers will always trust people like themselves over faceless corporations,” said eMarketer. “So investing in user-generated content is a sound way to humanize food and beverage brands—no Jolly Green Giant or Aunt Jemima necessary.”

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 September 7, 2012.    

eMarketer: Twitter Tops Facebook in US Mobile Advertising Revenue

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Google dominates $2.61 billion US mobile ad market with 54% share

NEW YORK, NY (September 5, 2012)—Twitter will take home more US mobile advertising revenues this year than its larger cousin, Facebook, according to a new forecast by eMarketer.

Twitter will earn $116.8 million in mobile advertising revenues this year in the US, eMarketer projects. Facebook, which rolled out mobile ads for the first time this year, will come in at just over half that amount, at $72.7 million in the US.

Both companies earn far less mobile revenue than companies with more established mobile ad platforms like Google and Pandora, though growth in mobile revenues at both social networks is expected to remain high throughout the forecast period.

The increasing focus on mobile by both Twitter and Facebook, as well as other major digital advertising publishers, will contribute to growth in the overall US mobile advertising market, which eMarketer estimates will reach $2.61 billion this year. By 2016, the US mobile advertising market is expected to near $12 billion, according to eMarketer.

eMarketer bases its estimates for mobile advertising revenues on an analysis of reported revenues from company releases; estimates from other research firms on advertising revenues, pricing, impressions and other factors; usage trends at major mobile advertising publishers; and eMarketer interviews with executives at ad agencies, brands, online ad publishers and other industry leaders. eMarketer’s estimate for overall US mobile advertising spending in 2012 is unchanged from the previous forecast. This is eMarketer’s first forecast for mobile advertising revenue at Twitter, Facebook and Pandora.

Driving Factors for Mobile Ad Growth at Facebook and Twitter

There are several factors underpinning the growth of Facebook and Twitter’s mobile businesses.

As users increasingly access Twitter via mobile devices, eMarketer believes that the tight integration between the company’s ad products—particularly Promoted Tweets—and core user experience has made the subsequent shift toward displaying mobile advertisements relatively simple. Twitter CEO Dick Costolo has reported that, on most days, the service generates more ad revenues from users on mobile devices than it does from viewers of Twitter.com.

Facebook, by comparison, only rolled out Premium advertisements in the Newsfeed—part of its core user experience for both mobile and desktop—earlier this year. eMarketer estimates that Facebook earns more than 60% of its revenue from its Marketplace advertising platform, most of which is generated by ads that display on the right-hand side of Facebook’s desktop experience. Such ads do not appear on Facebook’s mobile platform.

Still, mobile is a long-term play for Facebook, and by next year, eMarketer expects the social networking giant to beat out Twitter by a significant margin, taking in $387 million on mobile in the US. By 2014, Facebook’s US mobile revenues will reach $629.4 million, compared to $350.9 million at Twitter—making Facebook the second-highest mobile ad earner of all companies after Google, which has a significant lead.

Net US Mobile Search, Display and Overall Ad Market Share

Google currently dominates the overall US mobile ad market, with a 54.5% share of net revenues projected for this year, dropping slightly to 54.1% by 2014 as more competitors enter the market. Online radio service Pandora, which is expected to earn 8.7% of US mobile ad revenues this year, will maintain the No. 2 position until next year.

Much of Google’s dominance of the overall mobile market is a result of the company’s strong position in the mobile search ad market, in which eMarketer estimates Google maintains a 95.4% share of revenues—leaving just 4.6% of the $1.28 billion advertisers will spend on US mobile search ads this year for competitors like Microsoft.

Competition among major players will be healthier in the US mobile display ad market, which eMarketer estimates will grow 102% to $1.1 billion this year.

On a net basis, Pandora Media has emerged as one of the strongest US mobile display ad sellers, and its share of the total US mobile display market is expected to reach 20.5% in 2012. Google, which sells mobile display ads through its network and on its own sites, is expected to earn an 18.4% share of US mobile display ad revenues this year. eMarketer estimates Millennial Media will earn $84.1 million in net US mobile display revenue this year, compared to Apple, which will earn $75.1 million.

One key change from the previous forecast is that these figures represent net revenues after companies pay traffic acquisition costs to partner sites. eMarketer previously forecast gross US mobile revenues for major ad networks.

This change in definition has led to a reduction in share for mobile display ad networks owned by Millennial Media, Apple and Google, each of which pay back a significant portion of their gross revenues to ad publishers and partner sites. eMarketer believes mobile display growth at these companies is still very strong—and each will maintain an outsize footprint in the marketplace despite taking home a smaller piece of the net revenue pie.

Despite the growing focus from major ad publishers, mobile remains a relatively small portion of the overall US ad market—with mobile representing roughly 1% of total US ad spending in 2012, according to eMarketer—and mobile media buys will remain smaller than those on other digital platforms, particularly as small screen sizes force many display ad publishers to serve fewer impressions per mobile page view.

Still, growth rates for mobile display, as well as search, are expected to remain very strong over the next few years as more advertisers develop infrastructure to support larger mobile ad buys and publishers develop more sophisticated offerings.

Spending on rich media ads drives a commanding portion of mobile display growth, though mobile banner advertising remains a relatively strong contributor too. Mobile video advertising—accounting for just 5.8% of all mobile ad dollars spent in 2012, according to eMarketer—will remain a small piece of the mobile ad market throughout the forecast period.

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 September 5, 2012.    

eMarketer: Twitter Worldwide Advertising Revenue to Maintain Double-Digit Growth through 2014

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Twitter to top Facebook in US mobile ad revenue for 2012

NEW YORK, NY (September 5, 2012)—Twitter is continuing to grow at a rapid pace, eMarketer estimates, with 106.7% growth predicted for this year as the company reaches $288.3 billion in global ad revenues.

Out of all of the social networks included in eMarketer’s September US ad spending forecast, Twitter will experience the steepest growth. eMarketer has raised its expected growth rate significantly for 2012 from 75% to 94% in the US alone. Between 2012 and 2014, Twitter’s US ad revenue will climb from $259 million to $638 million.

The social network’s rollout of a self-serve advertising platform, rapid international expansion and Twitter’s success at signing big-name advertisers to longer-term ad packages have led to faster-than-expected growth. It is also expected that in late 2012 or early 2013, the social network will release an Ads API as well as begin distributing TV and video content, opening up more revenue streams. Mobile revenue will also be a main driver of Twitter’s growth. Mobile clickthroughs will be higher because many users are more active on the site via mobile devices than desktops.

Throughout eMarketer’s forecast period the microblogging service is expected to maintain worldwide growth in the high double digits, reaching $807.5 million in ad revenues by 2014.

Much of the company’s growth is driven by its mobile presence. Twitter will earn $129.7 million in mobile advertising revenues this year in the US, eMarketer projects. By 2014, Twitter is expected to earn more than $444 million in US mobile ad revenues alone.

eMarketer estimates that 55% of Twitter’s ad revenue will come from online advertising, this year while the other 45% will come from mobile. This large share illustrates the strength of mobile advertising for Twitter. By 2014, Twitter’s mobile revenue share will surpass the company’s online revenue, at 55%, eMarketer estimates.

As users increasingly access Twitter via mobile devices, eMarketer believes that the tight integration between the company’s ad products—particularly Promoted Tweets—and core user experience has made the subsequent shift toward displaying mobile advertisements relatively simple. Twitter CEO Dick Costolo has reported that, on most days, the service generates more ad revenues from users on mobile devices than it does from viewers of Twitter.com.

eMarketer bases its estimates for Twitter advertising revenues on an analysis of company reports; estimates from other research firms on advertising revenues, pricing, impressions and other factors; usage trends at major mobile advertising publishers; and eMarketer interviews with executives at ad agencies, brands, online ad publishers and other industry leaders.

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 September 5, 2012.