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Archive for November, 2012

The Four Key Benchmarks of Digital Video Advertising

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Spending for video advertising, both desktop and mobile, will rise from $2.93 billion in 2012 to $8.04 billion in 2016.

New York, NY (November 30, 2012) – The valuable digital video audience is growing in both number and time spent viewing, and that is compelling more marketers to invest more ad dollars, according to a new eMarkteter report, “Video Advertising Benchmarks: Key Data, Trends and Metrics.”

The latest eMarketer projection shows that by 2014, nearly three-quarters of all US internet users will watch video online at least once per month. Alongside rising viewership, spending for video advertising, both desktop and mobile, will rise from $2.93 billion in 2012 to $8.04 billion in 2016.

As more ad-supported video content is created, the focus shifts to the four basic benchmarks of video advertising: ad metrics, types of ads, spending trends and audience size.

The report answers key questions about these metrics and what they mean for marketers, including:

  • Which metrics best indicate video advertising effectiveness?
  • How will digital video ad spending proceed over the next few years?
  • What are the most salient characteristics of the video audience?

Traditional digital ad metrics include completion rates and brand lift. When a user views a video ad in full, marketers can be more confident that their message got across. One would assume that shorter ads would have higher completion rates, and data from video ad network YuMe supports that assumption. In the first quarter of 2011 and the first and second quarter of 2012, YuMe found that shorter ads saw higher completion rates.

Brand lift, or the overall increase among the various brand health markers, is another important evaluation metric, cited as the video metric that delivered the highest level of success by the most respondents (54%) in a 2012 survey from Digiday and Adap.tv.

But the data gathered from a variety of advertising campaigns during different time periods by several video-ad firms should best be viewed as basic indicators of larger trends. That’s because a plethora of factors will color the results of any single metric, such as completion rate, for a specific campaign. Those factors include everything from the time of day an ad runs to the nature of the creative.

In addition, marketers must also keep in mind who is watching videos and accompanying ads, and when.

At 18.9%, the largest share of the 178.7 million digital video viewers in 2013 will be ages 25 to 34, according to eMarketer estimates. However, while some might get the impression that the digital video audience tilts extremely young, about 50% of viewers in each year of eMarketer’s forecast period will be between ages 25 and 54.

Posted on November 30, 2012.    

Despite Tough Economy, UK Digital Advertising Budgets Continue to Rise

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UK estimated to spend highest worldwide percentage of overall ad budgets on mobile by 2016

New York, NY (November 27, 2012)— While the UK economy remains troubled, a new eMarketer report, “UK Digital Advertising: Spending and Trends” finds the country’s digital advertising market is thriving. Spending on online and mobile platforms will rise 14% to $8.8 billion in 2012, according to the report.

Digital ad spending in the UK is expected to pass $10.7 billion in 2014 and $12.4 billion in 2016.

The UK is now the world’s third-largest market for mobile advertising, according to eMarketer. In 2012, only the US and Japan—with projected mobile ad spending of $2.38 billion and $1.74 billion, respectively—will outrank the UK’s $721 million.

As the UK’s GDP and unemployment rate continue to remain low, many advertisers are in no mood to raise expenditures when most consumers’ spending power is shrinking.

Total media ad spending climbed just 1.8%, to $23.2 billion in 2011, eMarketer estimates. In 2012, the industry got a major shot in the arm from the London Olympics and the UEFA European football championships. eMarketer predicts spending on all measured media in the UK in 2012 will be just shy of $24 billion, a gain of 3.4% over the preceding year.

Digital advertising—including online and mobile—will continue to be the main driver of increases in UK ad spending between 2012 and 2016, eMarketer estimates.

Most research firms have predicted growth of at least 10.3% in UK digital ad spending this year. eMarketer has projected 14% higher spending in 2012 and slightly lower growth (10%) in 2013. The majority of sources expected digital ad spending to be between $8.5 billion and $8.8 billion in 2012 and about $9.6 billion next year. Lower estimates, from Strategy Analytics and ZenithOptimedia, exclude mobile advertising.

One clear reflection of the market’s maturity is the investment advertisers are making to reach UK residents on digital platforms. In 2012, an estimated $188 will be spent, on average, for each web user in the country. Historically, this average has been substantially higher in the UK than in the US or Western Europe as a whole.

All digital ad formats will attract greater spending by UK advertisers during the next four years. Search and display will grow more rapidly than email and lead generation, which claim quite small slices of the digital spending pie.

Spending on paid search ads will rise by 15.3% in 2012, and amount to $5.2 billion, or 58.5% of all UK digital spending, eMarketer predicts. Within four years, search is expected to reach $7.1 billion—though its share of the total will slide to 57.1%.

In 2012, some $2.0 billion—about 23% of all UK digital ad spending—will go to display advertising such as banners, rich media, video and sponsorships, eMarketer predicts. Overall, video will be the main force behind higher display investment in the next four years, as spending on online video ads in the UK rises from a projected $273 million in 2012 to $1.37 billion in 2016, according to eMarketer estimates. The rise of real-time bidding (RTB) for ad placements will also encourage display ad spending growth. Expenditures on classified ads will account for an estimated 16% of the digital total in 2012, and rise by at least $110 million per year during the forecast period.

Mobile advertising growth, pegged at 120% for 2012, is expected to remain above 50% until 2016, when mobile ad spending in the UK will approach $3.5 billion.

As a percentage of total media ad spending in the UK, mobile is still tiny—just 3% of all ad expenditures in 2012, according to eMarketer calculations. The UK is the clear mobile leader in Western Europe, though, where no other country will see mobile ads accounting for anything like that proportion of advertising this year. In the US, mobile is expected to constitute less than 2% of the total ad market in 2012.

By 2016, 12.6% of all UK ad budgets will be spent on mobile platforms, according to eMarketer, the highest percentage worldwide.
Mobile is projected to account for 8.2% of UK digital ad spending in 2012, and 27.9% in 2016.

Most people on the go use their mobile phones to seek out information—about local restaurants, stores or transport options, for example—so brands tend to focus their mobile ad spending on search.

Overall, an estimated 74% of UK mobile ad spending will go to search in 2012, compared to 26% spent on display. eMarketer anticipates that the clear dominance of search will continue through 2016, though spending on video formats will register the most dramatic gains during the forecast period.

The full report, available to eMarketer coporate subscription clients only, also addresses the overall ad spending market in the UK, digital ad spending breakdown by industry, and the role of social networks in overall UK digital advertising trends.

eMarketer forms its forecast through an analysis of estimates from other research firms; survey results from brands, agencies and media publishers; digital and mobile ad spending 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 November 27, 2012.    

eMarketer Chairman Geoff Ramsey Speaks About the Influence of Millennials at the Monaco Media Forum

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Geoff Ramsey, Chairman of eMarketer, spoke with Colleen Fahey Rush, EVP and Chief Research Officer at Viacom; Miles Beckett, Co-founder and CEO at EQAL; Damian Burns, Director, Global Agency Sales at Google; and Josep Hernandez, Senior Director, Communications Planning, Mondelēz International at the 2012 Monaco Media Forum in Monte Carlo.

The presentation and roundtable discussion, “The Next Normal,” focused on the millennial generation and what marketers can expect from these digital natives in the coming years.

As millennials constantly adapt their spending habits to the latest digital trends, brands must make sure their marketing efforts keep up. eMarketer provides brands with the most complete view of digital marketing available, including these recent articles featuring data on millennials:

Clients, log in to access these exclusive eMarketer reports and forecasts:

Posted on November 26, 2012.    

Millennial Grocery Shoppers Favor Deals Over Brands

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More than six in 10 used their smartphone to compare prices in a grocery store

New York, NY (November 19, 2012) – Millennials’ grocery shopping habits are a mixed bag, according to a new eMarketer report, “Millennials in Aisle 2.0: Keeping Young Supermarket Shoppers Engaged with Brands.” The weekly stock-up shopping trip is falling by the wayside as young adult consumers mix trips to farmers’ markets and specialty food stores with grocery buys at mass retailers, drug stores and, increasingly, online retailers.

The report offers important insights about how millennials shop for CPGs and answers key questions including:

  • Are millennials that much different from other shoppers?
  • How have mobile and digital technologies affected millennials’ path to purchase?
  • How are millennials using mobile phones when grocery shopping? How are they using brand websites?
  • Can digital technologies make grocery shopping more fun?
  • Do millennials favor one digital shopping strategy over another?

Meanwhile, the path to purchase has fragmented and brand loyalty is diminishing, creating myriad challenges for CPG brands. Shoppers are increasingly adept at using digital channels for grocery shopping, whether to speed the process, educate themselves about products, save money, or just to make the task more fun.

When trying to reach today’s millennials, a highly diverse group, defined as those ages 18 to 34, CPG brands can take advantage of this generation’s likelihood to be smartphone users and early adopters of new technology.

In grocery stores, millennials seem to be spending as much time looking at their phones as they are at the products on the shelves. According to an August study by Sprint that examined how millennial smartphone users used mobile devices at various types of retailers, 61% used their smartphones to compare prices of items while in a grocery store. Other popular activities included finding coupons (57%), accessing a shopping list (54%) and finding recipes (51%).

Millennials’ biggest priority is to save money. The lingering effects from the recession, as well as rises in the cost of food due to drought this past summer, continue to put pressure on consumers’ wallets. Millennials, many of whom are still gaining a foothold in the workforce, are especially aware of the cost of each item going into their shopping cart.

SymphonyIRI’s Q2 report found that item price was the biggest influence on brand selection for millennial shoppers, with 87% of respondents saying it played a factor in determining what brand they bought. Coupons and shopper loyalty discounts were also a deciding factor for 68% and 53% of millennial shoppers, respectively.

Rebecca Kane, vice president of brand management and customer-specific marketing at Ahold, said the grocer has found that “[millennials] are savvy shoppers. They get a lot of information so that they can make very smart choices, before they even get to the store.”

Posted on November 19, 2012.    

eMarketer in the News: November 16, 2012

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New York Times – The New Algorithm of Web Marketing
November 15, 2012: Clark Fredricksen, the vice president for communications at eMarketer, a data company, said that publishers were “going to have to double down to prove the value of their inventory as they compete with other, cheaper inventory.” Read more.

Advertising Age – Real-Time Bidding to Account for 25% of Display-Ad Spending by 2015: eMarketer
November 14, 2012: A quarter of all display-ad spending in the U.S. will occur via real-time auctions for ad impressions by 2015, according to research firm eMarketer’s first forecast of the growing ad-buying trend. Read more.

Reuters – Facebook Offering E-retailers Sales Tracking Tool
November 16, 2012: “The path to purchase” is not as direct on Facebook as it is on Google’s search engine, said Debra Aho Williamson, an analyst with research firm eMarketer. But she said that providing information about customer sales conversion should help Facebook make a stronger case to online retailers. Read more.

Marketplace – ‘Like’ to Find a Job? Facebook Has an App for That
November 15, 2012: Today Facebook launched a new app. Not for playing farmer or remembering birthdays, but for finding a job. This, of course, is not just about Facebook helping you find a job, says Clark Fredricksen at eMarketer. Read more.

Forbes – Is Your Brand Trust Worthy?
November 13, 2012: 86% of US internet users had been misled by videos that appeared to be content but turned out to be sponsored ads, said eMarketer. Read more.

Posted on November 16, 2012.    

Take Two Apps and Text Me in the Morning

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Smartphones and tablets become essential tools for the healthcare community

November 16, 2012 (New York, NY) – Smartphones and tablets are integral to many healthcare professionals’ (HCPs) daily routines. In short order, they have become essential tools for drug and medical reference, access points for clinical information, visual aids for educating patients and time-savers for managing increasingly burdensome administrative tasks. A new report from eMarketer examines the myriad ways mobile platforms are changing the healthcare industry.

The new report, “Take Two Apps and Text Me in the Morning: How Smartphones and Tablets Are Changing the Way Healthcare Practitioners Work,” examines emerging mobile trends in the healthcare industry and answers key questions including:

  • How are healthcare professionals using smartphones and tablets in daily practice?

  • How are these devices fundamentally changing the way healthcare professionals practice?

  • How is mobile marketing to HCPs evolving?

Already today’s physicians, nurses, pharmacists and other clinicians are heavy mobile users, with doctors leading the pack.

According to MedPage Today, in March, 70% of US physicians used a smartphone as part of their medical practice, and a variety of other studies have pegged physician ownership or professional use of smartphones at over 80%. Smartphones are followed closely by tablets, which have also been adopted at a faster pace by HCPs than by the general population.

Health professionals tap their mobile devices for a range of professional activities that run the gamut. According to WebMD’s vice president of professional services, Dr. Steven Zatz, medical professionals most often use smartphones and tablets to access reference information—“to look something up”—either at the point of care or between patient consults.

Health professionals tap their mobile devices for a range of professional activities that run the gamut. According to WebMD’s vice president of professional services, Dr. Steven Zatz, medical professionals most often use smartphones and tablets to access reference information—“to look something up”—either at the point of care or between patient consults.

A November 2011 study by UBM Medica bears this out. It found that 80% of US HCPs used mobile devices to look up drug information, and more than 54% used them to look up treatment or diagnosis-related information.

In the coming years, technology advances will only accelerate mobile adoption and bring about more coordinated and complex HCP use of portable electronic devices in healthcare practice.

“Continued migration to electronic health records will drive greater demand for secure mobile access,” said eMarketer. “And patients, similarly empowered by technology, will partner with their providers in new care models that make use of therapies that incorporate mobile tracking and monitoring, data analysis and individualized coaching and feedback.”

Posted on November 16, 2012.    

Real-Time Bidding Poised to Make Up Quarter of All Display Spending

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NEW YORK, NY (November 14, 2012)—Real-time bidding (RTB) will account for 13% of all US display advertising spending this year, more than triple its share in 2010, according to new estimates by eMarketer. Over the next few years, RTB will continue to gain momentum and share of ad dollars as more media buyers and publishers benefit from its efficiencies.

This year, the overall US display ad market will grow 21.5% to $14.98 billion from $12.33 billion in 2011, according to eMarketer estimates from September. Growth in RTB display ad spending, by comparison, is expected to reach 98% in 2012.

Research firms estimate US RTB digital display ad spending will total between $1.1 billion and $2.1 billion this year, driven by improvements in RTB technology and increased investment from both media buyers and publishers. eMarketer forecasts RTB ad spending will reach $1.9 billion in 2012 as both publishers and media buyers continue to adopt RTB technology at a steady clip. Beyond 2013, those growth rates will slow as the programmatic buying landscape settles and matures and awareness and general understanding of RTB technology become ubiquitous. Even still, by 2016, US RTB ad spending will climb to $7.1 billion.

eMarketer forms its forecast through an analysis of estimates from other research firms; survey results from brands, agencies and media publishers; digital and mobile ad spending trends; and eMarketer interviews with executives at ad agencies, brands, media publishers and other industry leaders. eMarketer’s estimates include all display formats, including banners, video and social served to all devices.

This is eMarketer’s first-ever forecast for US real-time bidding digital display ad spending. eMarketer’s estimates are slightly more conservative in their projections for growth than some other firms. eMarketer is confident programmatic buying for mobile and video will contribute significantly to future RTB ad spending growth, but for now those ad types will account for relatively small shares of overall RTB dollars. As media buyers increasingly invest in RTB and big publishers like Facebook continue to enter the market, eMarketer forecasts 72.4% growth in US RTB ad spending for 2013.

There are four key influences that will determine the growth of RTB: the maturation of Facebook’s ad exchange, FBX, an expected influx of video and mobile inventory, an anticipated greater availability of premium ad inventory and an overarching demand for better transparency for all of digital display, not just RTB.

Though the industry remains confident all of the above influences will in fact result in additional ad spending dollars moving to programmatic buying, how quickly each of these four developments evolves to produce its effect is less certain.

Facebook’s recent launch of its private ad exchange, FBX, will play a role in driving future RTB ad spending growth, though, for now, how much of a role is difficult to determine. FBX only came out of beta testing in September 2012, and although Facebook spoke positively about the exchange’s performance in its Q3 2012 earnings call, company COO Sheryl Sandberg described FBX’s current revenue impact as “small.”

Yet even slight adoption on the part of Facebook advertisers could yield significant growth for the real-time buying market, considering that Facebook will have an estimated 15% share of total US display ad spending in 2013.

An influx of brand dollars as national and global brands look to programmatic buying to more efficiently identify and reach their target audiences for brand-lift measures is also expected to fuel RTB ad spending. Anticipated advancements in display ad placement transparency and in-view accountability, as well as a rise in the amount of premium inventory made available through exchange channels, will help pave the path to entry for some branding-conscious marketers.

Definitions:

Real-time bidding (RTB) is a digital advertising technology that lets marketers buy and publishers sell display ads dynamically, in real time, on an impression-by-impression basis.

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 November 14, 2012.    

Monaco Media Forum

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November 14th – 16th, 2012

eMarketer chairman Geoff Ramsey will be  participating  in the session titled “The Next Normal – Millennials think different.”

About Monaco Media Forum

The Monaco Media Forum brings together leaders of new and traditional media for two and a half days of high-level discussions about the future of online, broadcast and print communications. Aggressively global in outlook, the invitation-only gathering focuses on emerging opportunities in media technology, distribution and content, with special emphasis on advertising, marketing & finance. Now in its seventh year, MMF is a unique meeting place for architects and builders of the next-generation media landscape.

 

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 November 12, 2012.    

eMarketer in the News: November 9, 2012

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New York Times – Advertising Relearned for Mobile
October 28, 2012: Google earns 56 percent of all mobile ad dollars and 96 percent of mobile search ad dollars, according to eMarketer. The company said it is on track to earn $8 billion in the coming year from mobile sales, which includes ads as well as apps, music and movies it sells in its Google Play store. But the vast majority of that money comes from ads, it said. Read more.

Financial Times – Publishers Can Survive Digital Kryptonite
October 31, 2012: Analysts even predict that magazine publishers are about to start growing again. eMarketer, a research firm, sees US print advertising budgets staying steady, slightly above $15bn, between 2010 and 2016. Read more.

Financial Times – Washington Post Company Boosts Earnings
November 2, 2012: Newspaper ad revenues are expected to drop 5.9 per cent this year to $22.5bn as publishers cope with a shift to digital and dwindling circulations, according to research firm eMarketer. Read more.

Reuters – AOL Ad Sales, Strongest in Seven Years, Boost Profit
November 6, 2012: That compares with the overall U.S. display ad market, estimated to grow more than 20 percent to $14.98 billion this year, according to research firm eMarketer. Read more.

Bloomberg – AOL Climbs After Posting Profit on Higher Advertising Sales
November 6, 2012: AOL’s U.S. advertising business ranks fifth among major competitors behind Google, Yahoo, Facebook Inc. and Microsoft Corp., according to research firm eMarketer. Read more.

Bloomberg – Priceline Buys Kayak for $1.8 Billion Expanding in Travel
November 8, 2012: “These are two of the largest online-travel companies, and both are consistently in the top five or top 10 of traffic in the United States,” said Dan Marcec, an analyst at EMarketer. “It makes sense that these two companies would want to work together, of course, because they do have different strengths and different objectives.” Read more.

USA Today – Apple Misses Estimates with Fourth-Quarter Results
October 25, 2012: The brand new lineup of computers covers the spectrum of price points and functions as it heads into the holidays, says Noah Elkin, an analyst at eMarketer. Read more.

Posted on November 9, 2012.    

What Brands Need to Know Before Tackling the World’s Largest Ecommerce Market – China

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In China, ecommerce opportunities abound, but challenges remain

New York, NY (November 7, 2012) – Online sales in China are flourishing. Consumers are embracing the internet’s ability to offer comparison shopping and product research, and marketers are eager to expand operations beyond flagship stores in established markets. A new eMarketer report, “China Ecommerce: A Developing Market Begins to Boom,” examines the opportunities and challenges for brands entering this growing market.

The report answers important questions for marketers looking to expand their ecommerce efforts in China, including:

  • What are the main drivers of ecommerce in China?
  • Who are China’s lower-tier online shoppers?
  • Is Taobao the only platform you need to know?
  • What role will mobile commerce play in the market’s future?

Already established as the world’s largest internet market in terms of sheer users, China has also become the world’s largest ecommerce market.

Westerners mostly shop online for convenience, but in China the kick for the click is driven much more by availability and value. Shopping online means access to brands and goods otherwise not available beyond Tier 2 cities. The country offers enormous opportunities for marketers to build brands without having to invest in expensive physical locations across hundreds of cities.

A number of additional factors are driving ecommerce growth, such as virtual flagship stores on platforms like Alibaba’s Tmall, an offshoot of the eBay-style auction site Taobao. Ecommerce also has strong support from China’s government, which believes online sales growth will help develop domestic sales across China’s entire value chain.

Despite the optimism, China’s ecommerce industry still has hurdles to overcome, including issues with privacy, counterfeiting, user data protection, payment systems and distribution. Advertisers should also realize that working with local platforms can be difficult. China’s ecommerce websites would rather please customers than brand owners and operate at a faster pace than the average ecommerce platform in the West.

Posted on November 6, 2012.