Internet display spending expands amid recession

Internet display advertising grew 4.6% during 2008, making it the fastest-growing of the major media tracked by ad monitoring firm TNS Media Intelligence. By contrast, ad spending in the total measured media marketplace fell 4.1% as the recession took hold, driving advertising budgets down for most of the major media.

In fact, Internet display advertising’s relative performance grew even stronger as the year wore on, while the overall media marketplace eroded even further. During the fourth quarter, Internet display advertising rose 7.0% over the fourth quarter of 2007, while total ad spending across the measured media fell 9.2% during the same period.

While 4.6% is the most tepid growth rate for the online display market since the dot-com crash of 2001, it shows that online advertising is growing despite significant cutbacks in the other major media, meaning that online’s share of the total advertising pie is growing.

In 2008, newspaper ad spending declined 11.8%, while magazines fell 7.5%, and radio was down 10.3%. TV spending was essentially flat, with the overall medium posting a 0.1% gain, but most of that came from cable and Hispanic TV networks. Ad spending on the major broadcast networks fell 0.8% in what was also an Olympics year that theoretically should have brought incremental spending to the broadcast TV marketplace.

The TNS MI data also likely does not reflect the overall strength of online ad spending. TNS MI does not currently measure even faster-growing sectors such as paid search. And recent revised forecasts from Interpublic’s Magna unit show online video advertising growing 32% and mobile …

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Com Score on the Rapid Emergence of Vertical Ad Networks Reaching Engaged, Targeted Audiences.

The study discusses how vertical advertising networks have increased substantially in the past year, from 21.5 percent of the total U.S. Internet audience in March 2008 to 57.1 percent in March 2009.

“comScore research indicates that vertical ad networks are a growing phenomenon in the online advertising space, in part because of their ability to deliver engaged, targeted audiences,” said Lesle Litton, VP, Media at comScore. “As more vertical ad networks prove their ability to effectively reach specific target audiences by aggregating mid-tail publisher sites, the industry will likely give greater consideration to these emerging ad delivery channels.”…

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Auto Insurance Consumers Increasingly Use Internet for Obtaining Price Quotes and Purchasing Coverage

Online the Preferred Channel for Auto Insurance Quotes
The survey, which asked auto insurance consumers how they obtained price quotes when they most recently shopped for auto insurance, found that online was the most commonly used channel by a wide margin. Nearly two-thirds (63 percent) of respondents indicated they went online to obtain price quotes, followed by calling local insurance agents representing a single company (26 percent) and calling local agents representing multiple companies (25 percent).…

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Yahoo! Sites Ranks as Top Display Ad Publisher in March with 43 Billion U.S. Ad Views, According to comScore Ad Metrix

Yahoo! Sites ranked as the top U.S. display ad publisher in March with 42.8 billion ad views (13.2 percent market share) reaching 139 million people online. Fox Interactive Media ranked second with 31.4 billion ad views (9.7 percent), while Facebook.com captured the third spot with 24.8 billion ad views (7.7 percent).

Top 10 Online Display Ad Publishers*
March 2009
Total U.S. – Home/Work/University Locations
Source: comScore Ad Metrix
Total Display Ad Views (MM) Share of Display Ads   Advertising Exposed Unique Visitors (000)
Total Internet 323,647 100.0%   184,002
Yahoo! Sites 42,847 13.2% 138,968
Fox Interactive Media 31,402 9.7% 82,527
Facebook.com 24,847 7.7% 52,931
Microsoft Sites 17,788 5.5% 89,135
AOL LLC 17,380 5.4% 91,272
Google Sites  4,235 1.3% 97,416
eBay 2,811  0.9% 47,991
Viacom Digital 2,367 0.7% 36,876
Glam Media 2,127 0.7% 37,237
CNN 1,984 0.6% 27,616

*Reflects display advertising only, both standard and non-standard IAB sizes; excludes house ads and small ads (<2,500 pixels in dimension)

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Australian consumers trust personal recommendations, newspaper editorial and opinions posted on websites more than any form of advertising, according to new research. 64% happy to draw upon the opinions of people via the internet.

Australian consumers trust personal recommendations, newspaper editorial and opinions posted on websites more than any form of advertising, according to new research.

The latest twice-yearly Nielsen Consumer Survey found that recommendations from people they know was the most trusted form of brand information, with 93% confident the recommendation was trustworthy.

A further 67% trusted the editorial content they read in newspapers, with 64% happy to draw upon the opinions of people via the internet.

Email subscriptions and newspaper advertising fared strongest of any ad platform, with 62% and 60% of respondents saying they trusted these platforms, respectively.

Radio advertising scored a 57% trust rating, the same figure as TVCs.
Brand websites were trusted by 59% of those polled, while magazines and cinema ads scored 54% and 53% respectively.

Despite the growth in mobile phone usage, and accompanying advertising, 88% of people said they didn’t trust text ads on mobile phones. Similarly, online video and banner ads were not trusted by 77% and 81% of people, respectively.

“The explosion in consumer generated media over the last couple of years – Nielsen now tracks over 100 million sources – means consumers’ reliance on word of mouth in the decision-making process, either from people they know or online consumers they don’t, has increased significantly,” says Mark Higginson, director of analytics at Nielsen Online.

“However, some of the newer forms of advertising consumers are seeing, such as video ads online or advertisements sent via SMS, are less familiar and therefore cause a certain level of scepticism.”…

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ComScore/dunnhumbyUSA Research Shows Online Advertising on Par with TV Advertising in Growing Retail Sales of Consumer Packaged Goods Brands

Internet Advertising Lifts Retail Sales of CPG Brands by an Average of 9 Percent Over Three-Month Period

RESTON, VA, August 17, 2009 – comScore, Inc. (NASDAQ: SCOR), a leader in measuring the digital world, in partnership with dunnhumbyUSA, an international leader in building sales and brand value for consumer goods and retail companies, today released the results of an early series of studies it has conducted into the effectiveness of online advertising in building retail sales of consumer packaged goods (CPG) brands, revealing that the Internet can be as effective an advertising medium as television advertising.

Over the course of twelve weeks, online ad campaigns with an average reach of 40 percent of their target segment successfully grew retail sales of the advertised brands by an average of 9 percent. This compares to an average lift of 8 percent for TV advertising as measured by Information Resources, Inc. (IRI) and published in their seminal research paper “How Advertising Works.”

Offline Sales Lift from CPG Brand Advertising
Comparison Between TV and Internet
Total U.S.
Source: Information Resources, Inc. and comScore, Inc.
TV (IRI) Internet (comScore)
Sales Lift +8% over 12 months +9% over 3 months
Percent of Campaigns Showing Statistically Significant Lift 36% 80%

 

The comScore dunnhumbyUSA research was conducted by examining the retail purchasing behavior of members of the comScore panel of 2 million Internet users who have given comScore explicit permission to monitor their online behavior. The studies focused on the 200,000 comScore and dunnhumbyUSA panelists who were members of supermarket loyalty programs and whose retail buying behavior …

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Social Networking Sites Account for More than 20 Percent of All U.S. Online Display Ad Impressions, According to comScore Ad Metrix

MySpace and Facebook Each Represent Nearly 10 Percent of Total U.S. Online Display Ads Delivered

RESTON, VA, September 1, 2009 – comScore, Inc. (NASDAQ: SCOR), a leader in measuring the digital world today released a study of U.S. online display advertising on social networking sites in June 2009, based on data from the comScore Ad Metrix service. The study showed that social networking sites accounted for more than 20 percent of all display ads viewed online, with MySpace and Facebook combining to deliver more than 80 percent of ads among sites in the social networking category.

 

Top Online Display Ad Publishers in Social Networking Category
June 2009
Total U.S. – Home/Work/University Locations
Source: comScore Ad Metrix
Total Display Ad Impressions (MM) Share of Display Ads Ad Exposed Unique Visitors (000)
Total Internet : Total Audience 326,899  100.0 188,589
Social Networking 68,927 21.1 12.620
MySpace Sites 30,004 9.2 64,472
Facebook.com 26,813 8.2 67,389
Tagged.com 1,940 0.6 7,422
MocoSpace.com 496 0.2 1,067
Hi5.com 461 0.1 3,459
Bebo 435 0.1 6,350
Classmates.com Sites 400 0.1 9,181
BlackPlanet.com 345 0.1 2,084
GaiaOnline.com 258 0.1 1,859
DeviantArt.com 204 0.1 3,681

 

“Over the past few years, social networking has become one of the most popular online activities, accounting for a significant portion of the time Internet users spend online and the pages they consume,” said Jeff Hackett, comScore senior vice president. “Social networking sites now account for one out of every five ads people view online. Because the top social media sites can deliver high reach and frequency against target segments at a low …

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Social networking and blogs gaining traffic, says Nielsen report

‘Member Communities’ have overtaken email to become the fourth most popular online category, according to a Nielsen Online report.

Comprising both social networks and blogs, ‘member communities’ are now visited by over two thirds (67%) of the global online population and are growing twice as fast as any of the other four largest online sectors (search, portals, PC software and email), according to the ‘Global Faces and Networked Places’ study.

The findings also indicate that time spent social networking is growing at three times the overall internet rate, accounting for almost 10% of all internet time, and that 35 to 49-year-olds are the fastest adopters of member communities.

Australians’ access of member communities lags a little behind global trends – although social networking and blogging activity was up 4.9% in 2008 to 59.9%, it remained around seven percentage points behind the global average, ranking Australia eighth out of the 10 countries surveyed.

“Social networking is becoming a fundamental part of the global online experience. While already two thirds of the global online population accesses member community sites, the vigorous adoption and migration of time shows no signs of slowing, and in Australia we certainly expect strong growth moving forward to bring us in line with global averages,” says Melanie Ingrey, director of market research for Nielsen Online.

According to the Nielsen report, Facebook is visited by three in every 10 internet users every month across the nine markets in which Nielsen tracks social networking use. Orkut in Brazil has the largest domestic online reach (70%) of any social network in …

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70 percent of business’ to use social media in 2010

Despite consumers flocking online, business’ are yet to fully embrace the opportunities that social media presents to them, citing confusion over measuring ROI and fear of negative feedback to Nielsen Online in their latest survey.

Nielsen Social MediaThe Nielsen-Community Engine 2010 Social Media Business Benchmarking Study found that 70 percent of Australian businesses intend to undertake some form of social media for their business, a significant increase from the 40 percent engaged in social media in 2008. This difference has been attributed to responsibility for social media growing beyond the marketing team and gaining increasing traction at board level.…

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HOW TO: Respond when Social Media Attacks Your Brand

For all the praise that brand advertisers have for social media, they must be aware that it’s very much a double-edged sword. And for all the free marketing, advertising and brand promotion via Facebook (Facebook), Twitter (Twitter), Foursquare (Foursquare), and other platforms used to help build an identity and relationship with your customers, it can just as quickly turn on you and your brand.…

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