Archive for the ‘Advertising’ Category

Marketing officers say they’ll spend despite malaise

Wednesday, January 16th, 2008

Even as the r-word gets bandied about the chief marketing officers who spend money to promote global brands say “spend levels . . . (will) . . . be mostly holding steady or trending upward in 2008.”

So says the CMO Council in a press release summarizing the results of main-in surveys from about 800 of the group’s roughly 3,000 members. I consider the results of such surveys more useful in spotting trends rather than getting reassurances about spending so I focused on the following list of priorities displayed by MarketingCharts.com:

“The 12 leading areas of marketing dollar allocation in 2008 are expected to be the following:

  1. Strategy and branding

  2. Events and trade shows

  3. Operations

  4. Direct marketing (including telemarketing, mailings, email)

  5. Sales support

  6. Online marketing (website, SEO, SEM, viral, podcasts/blogs, communities)

  7. Advertising

  8. Market research

  9. Systems

  10. Merchandising and promotions

  11. Public and analyst relations

  12. Customer data integration and analytics”

Look how far down the list falls advertising, the mother’s milk of the beleaguered print industry. Look how high are events and shows. Where does your media business get its revenues?

 

Olympics, elections to offset weak economy, boost ads

Thursday, January 3rd, 2008

The Center for Media Research republished a recent forecast by the GroupM division of WPP that says the Beijing Olympics and U.S. presidential elections will help offset to slow the erosion of broadcast revenues in 2008. If there was any relief in the GroupM forecast for newspapers I missed it. This international report:

“identified television and the internet as the primary engines of global ad growth with 50 percent and 30 percent, respectively, of additional new investment in 2008 . . . (and) . . .  said spending on marketing services such as sponsorship and public relations is growing at a faster rate than it is for traditional advertising.” (editor’s note: this eMarketer article also suggests that ad buyers are looking for new campaigns and not just the same-old, same-old.)

In other highlights the GroupM report (original version here) also predicted that global Internet ad spending will exceed 10 percent of total expenditures for the first time in 2008 and said that in Sweden, net ads are likely to exceed TV ad spending for the first time — with the U.K. and Denmark poised to follow.

In a separate but related report, a J.P. Morgan analyst suggests price increases for Internet display, or graphical, advertising — a boon for big web publishers like Yahoo.

eMarketer says online will boom past subprime

Tuesday, January 1st, 2008

In an optimistic forecast, the online ad-trackers at eMarketer project that their medium will shrug off the mortgage crisis and thrive in tough times on the measurability of pay-per-click media. Here is the lead: 

EMARKETER IS FORECASTING U.S. ONLINE ad spending to reach almost $28 billion in 2008–with the market buoyed by the presidential election and the Beijing Olympics, among other factors. That’s up nearly 29% from this year. ” (read story).

Browsers take food, consumer brands seriously

Saturday, December 29th, 2007

tn_junkfood.jpg

Visits to consumer sites up 10 percent overall as some see traffic soar: why?

A Dec. 11 report from the web-tracking site comScore says traffic at consumer packaged goods CPG) sites rose 10 percent in 2007 compared to the same period a year earlier. The survey suggests that “the average visitor made 3.9 visits to sites within the CPG category, viewing 10.5 pages per visit, spending an average of 9 minutes per site visit.” Food sites dominated the listings.

That’s a fair amount of attention to devote to what strikes me as a pedestrian set of products. What accounts for the traffic? Presumably recipes, contests and special promitions but the comScore press release is silent on the why. In some cases it’s an easy guess. For instance, MyCokeRewards.com attracted nearly 9 million visitors, up from a negligible base the prior year, owing to visits from a contest that was cross-promoted with other media.

My interest has to do with how to draw traffic to an established site, with a pre-existing brand. And I want more than looksey-loosey visitors: I want visitors will leave registration information, or email accounts for followups. It is not at all clear from the comScore reports whether these visitors did any more than browse and depart.

I would be grateful if anyone know of a resource that ranks registered visitors to sites. It is NOT necessary that registrants pay for any service or good. I am simply trying to find out what constitutes success in terms of asking visitors to disclose their identity, and what tactics achieve these results. Thanks.

North American ad sales growth lags world totals

Tuesday, December 11th, 2007

tn_world-ads.jpg

Global ad spend recap, forecast reflect U.S. mortgage doldrums

ZenithOptima, a division of the global advertising firm Publicis Group, has released a free summary of a global advertising report that reveals many of the same trends apparent in the United States — the rapid loss of ad sales by newspapers and radio; a mild uptick in television and outdoor ad spending; and continuing strong growth of Internet advertising (click here to read) summary.

I chose one of the charts (see above) and ran it through a spreadsheet to see the comparative growth rates, historical and projected. The percentages shown on the right are from my calculations.

As would be expected North American, the largest market, grows the slowest, versus the emerging advertising frontiers in Central Europe or Africa, the Middle East and ROW (rest of world?). Of course there may be issues with the water in some of these rapidly-growing geographies.

One of the reasons I parked this number here is that at some future date I want to figure out whether global ad spending matches the ratio I have previously computed  for the U.S., of roughly 2.2 cents of advertising for every dollar of Gross Domestic Product. I just don’t have world GDP handy and don’t have time to look for it today.

Meanwhile, if you have another moment to spare, this Economist article solved one mystery about Internet advertising, only to create another. The piece, “Many ways to skin a cat,” explains why previous Web advertising metrics such as hits and page views are passee as measures of effectiveness (hits inflated activity because every graphic registered; page views had been a better choice but the AJAX technology of Web 2.0 weaken it as a measure).

The article goes on to talk about new measures in the works, such as time spent with media, and it struck me that the Internet ad sellers have no firmer idea of the effectiveness of their message delivery than their mass media predecessors. They simply have more meaningless metrics in their sales kits because everything is trackable on the Web. That doesn’t mean the numbers reveal any useful trtend. But if you are an ad buyer at a major brand those numbers must tell you that nobody gets fired, nowadays, for moving a larger share of their budget to the Internet.

  

Nokia redefines mashups: circular entertainment

Wednesday, December 5th, 2007

Nokia must be doing something right. The cell phone maker is a leader at the cutting edge of electronics, the distribution and servicing of handheld electronic  devices. So when it publishes a study, “A Glimpse of the Next Episode,” it seems wise to assume that the report is somewhat self-serving and that the company has released that which it wants us to know and kept back some of the spice it discovered so as to better mix its own secret sauce.

That being said, Nokia predicts that within five years, one-quarter of entertainment ”will have been created, edited and shared within their peer circle rather than coming out of traditional media groups.” In short, life will be a big mashup, viewed often no doubt on mobile devices.

I found two distillations of the Nokia findings (from MobileCrunch and Daily Connect) but not a link to the report.  And unless I glossed over it in my reading, I don’t know how the survey arrived at the 25 percent figure — by dollars spent, bytes transmitted or elapsed time of perusing what fruits arrive from the entertainment shift. (We are told that 9,000 persons were involved in 17 countries.)

But I’m not hung up on the numbers. What strikes me as interesting and plausible is the direction in which this study leads our thinking. We all add a little top spin when we tell a story. We add an adjective or a frown to indicate what we think about whatever — to influence or impress our listeners. What Nokia is talking about is the technological equivalent. Say you’ve just downloaded an interview with a celebrity you love or detest. What if you could add a halo or a pair of horns over the head and pass it to a friend? Isn’t that what the Web is about? Take the peer-conscious nature of youth culture; provide a device to easily share thoughts and impulses; and a way to modify the original content. And you have the making of many minutes of merriment. Wanna put your girlfriend’s head on Lindsay Lohan’s body? Can do. What fun!

Well, not for me but then that is the point. I belong to the generation who read. Soon I will put my false teeth into the cup beside my bed and not long after that me and my cohort will die, leaving behind many problems from a warmer world to the nettlesome issues of how to accommodate this playfulness. For instance, will Nokia be responsible for allowing the proliferation of softwares that would make it easy, for instance, to alter copyrighted text? Or will it close its platform to such alterating effects and insist that mashers do their mashing on other devices and only deliver their copyright infringements over Nokia’s net? Or maybe the copyright fundamentalists in Hollywood will get over their bad selves and allow that the universe of fair use must expand? Why are you shaking your heads? It could happen.

One last thought along these lines is aimed at Americans. Today we imagine ourselves the center of popular culture and that may be true, especially as regards movies and perhaps music — pop culture is hardly my forte. But as in every other realm of affairs any U.S. advantage is evaporating more rapidly than the worth of the dollar. Nokia, for instance, is based in a country that clings by its fingernails to the appelation of being a Western nation. And many of the insights and trends that will influence this mobile, mashup world of “circular entertainment” are already coming from Asia, notably trendy Japan and hot-on-its-heels South Korea.  

Here’s one last kick in the ass to American complacency: this study was done for Nokia by a UK outfit called The Future Laboratory. I visited its web site this morning to see who are these hot zeitgeisters and I learned that they have a patented form research called “cultural triangulation.” What  is that? Why they ask questions, watch the respondents and then use their intuition! Can you imagine that? All three human actitivities performed by one market research firm and protected by patents. Why even if anyone else thought of using their ears, eyes and brain all at the same time, they’d be prevented by international patent law. Want to be really impressed. Visit The Future Laboratory web site and watch it load — it’s cool, and I hope they markup their work an extra 15 percent for the entertainment value of that click, over and above the premium already charged for their cultural triangulation patent.

 

Ads glom onto videos as media disruption accelerates

Monday, November 26th, 2007

tn_measurement1.jpg What we can measure becomes important

Mediaweek reports that, come December, MSNBC.com will join ABCnews.com, Heavy.com and Video Egg in serving advertisements attached to specific video downloads and move away from its current sponsorship model for monetizing attention to video. The article quotes an advertising executive as saying that certainty of attention is what makes the new pricing method advantageous to the spenders. “Once that commercial or video is initiated on the computer, it’s an actual impression, not an estimated one,” Jeff Ratner of MindShare Interaction tells Mediaweek.

Article writer Shahnaz Mahmud notes that the certainty that a specific ad has been downloaded, and presumably viewed, differentiates the online ad from the broadcast version, in which the buyer must accept that some fraction of the audience actuallyviewed any given advert.

The prime target for these linked-video adverts appears to be the young male of whom, we are told 70 percent told one survey team they had viewed a download within the last seven days.

The Mediaweek piece does not refer to behavioral targeting but it cannot be long before the video advert can be linked to a behavioral profile inferred from the cookie on the viewers’ computer. Imagine that so-and-so has been tracked as viewing a succession of boating shows; are they a candidate for a speedboat advert? That is the stuff of which advertising dreams are made.

Alas for the journalist this is hardly good. The watchword is boobs — which could refer both the intended audience and the physical trait most likely to fetch its attention (In an earlier posting, Hot Zones vs Hot Tubs, I lament about the anti-news bias in pay-per-impression versus general sponsorship advertising.)