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Archive for August, 2012

Brick-and-Mortar Retailers Find Opportunities in Showroom Shopping

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Smartphone shoppers more likely than non-smartphone shoppers to make in-store purchase

NEW YORK, NY (August 15, 2012)— A new eMarketer report finds shoppers armed with smartphones aren’t posing the threat brick-and-mortar retailers might think they are. Instead of trying to combat showrooming, progressive retailers are focused on winning customer loyalty by providing exceptional shopping experiences.

The new report, “Adapting to a Showrooming World: How Retailers Are Earning Customer Loyalty,” analyzes findings from dozens of third-party research providers and interviews with industry executives, answering key questions about how retailers can better respond to showrooming, including:

  • What products are most vulnerable to showrooming?
  • How likely is it that a showrooming consumer will purchase in-store?
  • How does offering free in-store Wi-Fi help retailers reduce showrooming?

Showrooming is a natural outgrowth of consumers’ desire to research products and compare prices. And as the number of smartphone users grows, shoppers increasingly have the ability to take their research activity into the store. According to research from InsightExpress, in 2011 59% of smartphone owners said they used their phone to find a better price while shopping in-store, an increase of 19 percentage points over 2010.

“The showrooming phenomenon exposes two potential vulnerabilities for brick-and-mortar retailers. First, brick-and-mortar retailers likely have higher fixed costs than their web-only rivals, making it hard to compete on price,” said eMarketer. “ Second, they are dealing with consumers who are better informed, more demanding, and more aware of alternative sources of goods and services.”

Despite the threat many traditional retailers believe showrooming poses, consumers aren’t necessarily doing in-store smartphone research in order to make a purchase online. In-store shoppers who make a purchase after using a mobile phone to look up product prices usually buy at that store rather than online or from another store, according to a Pew Research survey conducted in December 2011.

Additionally, smartphone shopping dramatically improves in-store sales. A Deloitte study found that shoppers who use a smartphone in-store are 14% more likely to convert in-store than those who don’t, even when those smartphone shoppers use a mobile app or site not belonging to the retailer.

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 August 15, 2012.    

Epublishing Rapidly Expands, Amid Uncertainty

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Ebooks were the most-purchased tablet content by US tablet users

NEW YORK, NY (August 14, 2012)—Sales of ebooks and the devices on which people read them—ereaders, tablets and smartphones—are on a steady upward trajectory, according to a new eMarketer report, “Book Epublishing: The Price of Disruption.”

The new report analyzes findings from dozens of third-party research providers and interviews with industry executives, answering key questions about the opportunities and challenges of epublishing, including:

  • How many people use ebooks and reading devices (ereaders and tablets)?
  • What are the demographics of the ebook reading audience?
  • How will ebook pricing play out?
  • What are the issues affecting the ebook library lending market?

The US adult ereader user base is poised to grow at double-digit percentages this year and next, but in 2014 and 2015 expansion will slow to the 5% range. This reflects cannibalization from tablets, not a loss of interest in ebooks.

And people are using these devices—both ereaders and tablets—to read voraciously. The Online Publishers Association (OPA) has found that tablets encouraged book purchases. In March 2012, 35% of US tablet owners purchased ebooks on their devices—more than the number who bought movies or TV shows, purchased magazine or newspaper subscriptions, or bought single copies of magazines, according to OPA.

Difficulties in the ebook market remain though, and are primarily associated with content delivery and pricing. Although ebook production generates its own set of costs, consumers still feel that ebooks should be cheaper than traditional book formats. Whether or not publishers, distributors, retailers and technology firms agree, they are under intense pressure to meet consumers’ price expectations. And a recent suit by the Department of Justice against Apple and five publishers for ebook price fixing will result in a period of uncertainty over price levels.

Key Takeaways from “Book Epublishing: The Price of Disruption”:

  • The devices on which people read ebooks—ereaders, tablets and smartphones—are hugely popular with consumers.
  • Ebook sales are rising hand in hand with device sales.
  • Despite the success of electronic books and reading devices, the publishing industry is in the midst of a standoff over competing business models.
  • Ebook library lending is another area in which a surge of consumer interest is being mitigated by business disputes.
  • Marketers have an opportunity to participate in the ebook industry through ads on discounted 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 August 14, 2012.    

Search Critical in Brand-Building Strategies

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63% of US Internet users use search engines daily

NEW YORK, NY (August 10, 2012)—Brand marketers are increasingly using search to leverage their overall branding goals. That’s true even for the many companies that never sell their products online. A new eMarketer report examines six strategic ways brands can improve their overall campaigns by using search marketing.

The new report, “Search for Branding: Tools for Better Campaigns” analyzes findings from dozens of third-party research providers and interviews with industry executives, answering key questions about how marketers can better utilize search to strengthen overall branding, including:

  • Besides increasing awareness and website traffic, how can search marketing help overall branding efforts?
  • When it comes to branding, is paid search more important than SEO?
  • What makes search problematic for brand-oriented goals?

When considering whether or not to weave search into a brand’s total campaign, there is one simple, inarguable reason why brands should use it: Search is where the audience can be found. AYTM Market Research found that as of June 2012, the vast majority of US internet users used search engines either daily (63.5%) or fairly often (21.0%).

“Brands need search—and not just paid ads and higher organic rankings—to help them achieve their overall marketing goals,” said eMarketer. “They also need the search data that can give them unique insights both into their target audience’s interests, intents and perceptions and into their competition’s. And they need to connect all their search activities to their overall branding campaigns.”

Key Takeaways from “Search for Branding: Tools for Better Campaigns:”

  • Brands doing little or no search, must construct an initial plan.
  • Brands that have more fully integrated search into their campaigns need to make connections. Pinpointing the relationship between online and offline helps brands show that each element in their efforts, including search, is part of a holistic process.
  • Since search does not stand on its own, all brands should continually develop a broad range of destinations and content that take advantage of the keywords, key phrases and language the target audience uses.
  • ducation may be needed to overcome resistance from departments within the brand’s organization that might still insist search is merely a direct response channel, not one for branding goals.

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 August 10, 2012.    

Travelers Look to Smartphones as Real-Time Travel Guides

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Brands are slow to seize mobile opportunities outside of booking

New York, NY (August 10, 2012)—A new eMarketer report finds consumers are using smartphones to guide their travels from start to finish, whether that’s for last-minute bookings, connecting to destination-related information or seeking personalized recommendations. But marketers have been slow to take advantage of smartphones as on-the-go travel guides, placing the majority of their attention on mobile booking.

The new report, “The Mobile Traveler: How Smartphones Are Changing the Customer Journey,” analyzes findings from dozens of third-party research providers and interviews with industry executives, answering key questions about the opportunities and challenges the mobile traveler presents, including:

  • How often are consumers booking travel at the last minute through smartphones?
  • How do smartphones solve travel-related customer service challenges?
  • In what ways are consumers using smartphones in transit and once they reach their destinations?

Travelers are taking their mobile devices on the road in ever-increasing numbers, using them to plan travel in real-time.

In a Prosper Mobile Insights study earlier this year, only 2.2% of respondents said they left their smartphones or tablets at home while they traveled. And nearly 80% of those surveyed said they took their mobile device with them and used it “all the time.”

Travelers’ near-constant attachment to smartphones and tablets while on the road provides a unique opportunity to marketers, one that many are neglecting. Nearly 40% of the 9,000 accommodation owners and managers that responded to a 2012 TripAdvisor survey said they didn’t even have mobile marketing in their budgets. And more than one-third of respondents said they devoted less than 5% of their budget to mobile marketing.

The travel and hospitality marketers that are paying attention to mobile tend to place the emphasis on mobile booking. While eMarketer forecasts mobile booking to grow from 11.9 million bookers in 2012 to 36.3 million in 2016, it is a long way from being fully optimized. Marketers risk missing out on unique opportunities for mobile marketing throughout the customer journey if they too narrowly focus on mobile booking.

Key Takeaways from “The Mobile Traveler: How Smartphones Are Changing the Customer Journey:”

  • Smartphone travel booking is a long way from being fully optimized.
  • Personalized mobile travel content in context will become the go-to travel guide.
  • Smartphones will be a windfall for travel marketers.

“As mobile marketing becomes more sophisticated, travel marketers will have unprecedented access to their customers,” said eMarketer. “How those customers respond to this extended relationship will shape the future of travel services and loyalty marketing.”

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 August 10, 2012.    

eMarketer in the News: August 10, 2012

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The New York Times – Google Goes Back to the Drawing Board for Nexus Q
August 8, 2012: Advertisers are expected to spend $64.8 billion on TV this year, compared with $39.5 billion online, according to eMarketer, the advertising research firm. People are spending less time reading print publications or listening to the radio in favor of digital devices, eMarketer said, and they are spending more time watching old-fashioned TV. Read more.

Financial Times – Advertisers Cautious of Move to Mobile
August 8, 2012: Mobile internet use accounted for 10.1 per cent of media use in the US at the end of last year but attracted only 0.9 per cent of the total money spent on advertising, according to US research firm eMarketer. Read more.

USA Today – ‘Temple Run’ Creators Find Strength in Small Size
August 9, 2012: There will be 94.6 million mobile gamers in the U.S. by the end of the year, according to estimates from research company eMarketer. It says that number will rise to 138.3 million by 2015. Read more.

Internet Retailer – Viva La Revolución Del E-commerce
August 8, 2012: But online retail sales in Latin America grew at about 34% to an estimated $29.70 billion in 2011 from $22.23 billion in 2010, says eMarketer, an e-commerce research firm. “Online retailing is a growing phenomenon in Latin America and it’s only going to get bigger,” says eMarketer senior analyst Jeffrey Grau. “It’s an e-commerce market that is still coming of age.” Read more.

Posted on August 10, 2012.    

eMarketer in the News: August 3, 2012

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The New York Times – U.S. Poised to Spend More on Mobile Advertising Than Japan
August 1, 2012: On Tuesday, the company eMarketer released its first projections for ad spending on mobile marketing and found that the total market for advertising in the globally will reach $6.43 billion this year. Advertisers are expected to spend $2.4 billion on mobile advertising in the United States in 2012, up from $1.23 billion in 2011. The company estimates that spending on mobile ads in Japan will reach $1.36 billion in 2012. Read more.

The Wall Street Journal – Big Advertisers Give YouTube a Try
July 30, 2012: YouTube and other online-video rivals, such as Yahoo hope to shift advertisers away from TV. Last year, marketers spent about $60 billion on television advertising in the U.S., dwarfing the $2 billion spent for online video advertising, according to eMarketer. Read more.

Advertising Age – Yelp Sales Top Estimates as Reviews Grow 54%
While Google and Facebook together may control almost 40% of the U.S. online display-advertising market by 2014, Yelp isn’t projected to be in the top five, according to researcher eMarketer. Read more.

USA Today – More Businesses Getting Their Game On
July 29, 2012: Kiip and Popchips are using games as a way to personalize mobile advertising and overcome user resistance to ads on their smartphones and tablet computers. The market for mobile ads is expected to explode, soaring from an estimated $2.6 billion this year to $10.8 billion in 2016, according to research firm eMarketer. Read more.

Bloomberg – Apple Talked With Twitter About Investment, NYT Says
July 28, 2012: Twitter, while still smaller than online rivals Google and Facebook, expects to generate at least $1 billion in sales in 2014, two people with knowledge of the matter have said. Researchers at EMarketer Inc. have said that in 2014 Twitter advertising sales, which account for almost all its revenue, will rise to $540 million from $139.5 million last year. The closely held company doesn’t release sales figures. Read more.

Forbes – Why Apple Won’t Buy Twitter
July 30, 2012: Apple generates billions and billions of dollars in revenue from selling hardware, but few know about its ad business, iAd. That division of Apple has not done so well, and with good reason. Mobile monetization has not been figured out by anyone. Twitter is reportedly going to generate around $259.9 million in revenue this year (according to eMarketer), which is a drop in the ocean compared to Apple’s overall revenue. Read more.

Posted on August 3, 2012.    

Location-Based Marketing Points Consumers in the Right Direction

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41% of US adults use their mobile phones to get location-based information

NEW YORK, NY (August 1, 2012)— The percentage of Americans using mobile phones to find local information is increasing dramatically and the number of people in the US broadcasting their location through geosocial sites is ticking steadily upwards, according to a new eMarketer report.

The new report, “Location-Based Marketing: Driving Sales in a ‘What’s Around Me?’ World,” analyzes findings from dozens of third-party research providers and interviews with industry executives, answering key questions about the opportunities and challenges location-based marketing presents, including:

  • Where does commerce fit in the local-social-mobile nexus?
  • Where are location-sharing platforms headed and will the check-in survive?
  • What tactics are marketers using to drive local commerce?
  • What is “geofencing” and how does it work?
  • How can marketers address privacy concerns?

Forty-six percent of adult mobile phone owners, including 74% of smartphone owners, accessed location-based information services as of February 2012, according to the Pew Internet & American Life Project. These percentages were up significantly from the previous May, when 55% of smartphone owners and 28% of mobile users overall sought such services.

To put these figures into perspective, 41% of US adults used their mobile phones to get location-based information in February 2012, nearly double the number that did so just nine months earlier.

And consumers are putting that information to good use. Half of mobile searchers surveyed by Google in March 2012 said they visited a store after searching for local information and 26% made an in-store purchase.

“Shoppers are increasingly asking themselves, ‘What’s near me?’ because they know geosocial and location-based services on their mobile devices can provide answers and find nearby deals instantly,” said eMarketer. “Marketers that sharpen their focus on location-based marketing tactics can successfully connect these location-minded consumers to businesses in their immediate vicinity.”

Key Takeaways from “Location-Based Marketing: Driving Sales in a ‘What’s Around Me?’ World:”

  • Research suggests local search is successfully guiding consumers to stores and increasing sales.
  • Social networks are making it easier for businesses to broadcast deals and recommendations across a wider network of users in real time with improved location and mobile targeting.
  • Implicit and explicit location and behavioral data from social networks is being mined to establish purchase intent. In turn, such data is being used to target deals, messages and advertisements that drive foot traffic and sales.
  • Opt-in messaging campaigns and location-aware apps are attracting new customers and inspiring loyalty through location-targeted (and increasingly behaviorally-targeted) offers.

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 August 1, 2012.    

China Emerges as Global Ad Spending Juggernaut

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New eMarketer forecast highlights Asia’s growing advertising footprint

NEW YORK, NY (August 1, 2012)—China is not just the largest country in the world by population, but also an ad spending juggernaut that is helping Asia-Pacific achieve milestone after milestone in both total media and online ad spending, according to a new global advertising forecast by eMarketer.

Next year, eMarketer predicts, ad spending in China will reach nearly $53 billion, surpassing total spending in Japan for the first time, to make China the No. 2 country in the world in terms of ad spending. The US will remain far ahead, with more than three times as many ad dollars, but rising spending in China will narrow that gap in coming years.

Key takeways from eMarketer’s new global ad spending forecast:

  • China is set to become the world’s second-largest advertising market in 2013, and the second-largest digital advertising market the following year, behind the US.
  • The strength of ad spending in Asia-Pacific, combined with the Olympics, will help buoy total ad spending growth to 7.4% in 2012, despite economic concerns in Europe.
  • Digital advertising, as expected, will take a record 20% share of total ad spending this year.

According to the new forecast, one in five ad dollars spent globally now go to internet advertising. eMarketer estimates online ad spend worldwide will reach $107.33 billion in 2012, up from $88.47 billion last year.

Despite continued economic uncertainty in Europe, total ad spending will reach an estimated $542.27 billion worldwide this year as strong spending in China, India, Japan and the US propel growth to 7.4%.

The Olympics will help bump up ad spending in 2012, and growth will slow slightly next year to 6.4%. Latin America and Asia-Pacific will be the fastest-growing regions throughout the forecast period, with spending growing at about double the worldwide rate. Eastern Europe will also see higher-than-average growth.

China is also quickly growing the online portion of its ad spending, which is set to reach $7.36 billion this year. Rapid growth in China will help push Asia-Pacific past Western Europe to become the No. 2 region in the world for online ad spending in 2013. In 2014, this growth will make China the second-largest online ad market in the world, as it surpasses the UK and remains behind only the US.

Overall, online ad spending worldwide will grow 21.3% this year, slightly faster than last year’s rate of 21.1%, with growth slowing to 10.4% by 2016. The Middle East and Africa has the highest regional growth rate throughout the forecast period, but from an extremely small base—spending will not reach $3 billion by 2016. Latin America, Eastern Europe and Asia-Pacific will post above-average growth through 2016, while growth in North America and Western Europe will remain robust but more moderate.

eMarketer forms its estimates for total media and online ad spending worldwide through a meta-analysis of various elements related to the ad spending market, including macro-level economic conditions, historical trends of the advertising market, estimates from other research firms and consumer internet usage trends.

eMarketer benchmarks its online ad spending projections for France, Germany, Italy, Spain and Russia against the IAB Europe/IHS Screen Digest data for which the last full year measured was 2010.

eMarketer benchmarks its UK online ad spending projections against the IAB UK/PwC/Warc data for which the last full year measured was 2011. eMarketer benchmarks its Mexico online ad spending projections against the IAB México/PwC data for which the last full year measured was 2010.

eMarketer benchmarks its Australia online ad spending projections against the IAB Australia data for which the last full year measured was 2010. eMarketer benchmarks its Canada online ad spending projections against the IAB Canada data for which the last full year measured was 2010. eMarketer benchmarks its US online ad spending projections against the IAB/PwC data, for which the last full year measured was 2010.

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 August 1, 2012.    

US to Top Japan as World’s Biggest Mobile Ad Market

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Global mobile ad spending to reach $6.43 billion in 2012

NEW YORK, NY (August 1, 2012)—Spending on mobile internet advertising in the US will top all other countries in the world for the first time this year, helping drive mobile ad spending worldwide to $6.43 billion in 2012, according to eMarketer’s first-ever forecast for worldwide mobile advertising spending.

Until this year, Japan was the world’s largest market for mobile advertising, with spending reaching $1.36 billion in 2011, up from $1.01 billion in 2010.

Mobile advertising is more mature in Japan, which means growth is far lower than in North American markets. eMarketer estimates spending on mobile internet ads in Japan will grow 27.2% to $1.74 billion in 2012, versus 35.4% growth in 2011.

Mobile internet advertising spending in the US, by comparison, will grow 96.6% to $2.29 billion in 2012, up from $1.16 billion last year, according to eMarketer. As a result of this rapid growth, North America is also poised to surpass Asia-Pacific in 2013 as the world’s largest regional market for mobile advertising.

Asia-Pacific is still an exceptionally strong mobile advertising market, particularly in South Korea and Japan, keeping it far ahead of Europe in mobile spending. Mobile ad spending in Asia-Pacific will reach $2.56 billion in 2012, according to eMarketer, while mobile advertising spending in Western Europe and Eastern Europe will reach $1.3 billion and $121.1 million, respectively, this year.

“Mobile is an exciting, fast-growing category, but it’s still a very small piece of the overall ad pie,” eMarketer says. “Mobile advertising accounted for less than 1% of total ad spending worldwide last year—and it will be a long time before it challenges other mainstay global advertising channels like TV, print and internet ads.”

Key takeaways from the forecast:

  • Spending on mobile advertising in the US will top all other regions in the world for the first time in 2012
  • Mobile, despite rapid growth, accounts for just 1% of total ad spending worldwide
  • The mobile advertising market in Asia-Pacific remains far bigger than in Europe
  • Mobile advertising, though just 2.3% of total ad spending in the UK, is expected to take a record share by 2016, reaching 11% of total ad spending

eMarketer forms its estimates for mobile advertising spending worldwide through a meta-analysis of various elements related to the ad spending market, including macro-level economic conditions, historical trends of the advertising market, estimates from other research firms and consumer mobile usage trends.

Note: Mobile search ad spending includes advertising on search engines, search applications and carrier portals. Mobile display ad spending includes banners, rich media and video on WAP sites, and mobile HTML sites and embedded in-application/in-game advertising.

eMarketer benchmarks its Canada mobile ad spending projections against the IAB Canada data for which the last full year measured was 2010 and its UK mobile ad spending projections against the IAB UK/PwC data for which the last full year measured was 2011.

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 August 1, 2012.