Tag Archives: technology

DSPs Stole Ad Networks’ Thunder In Q4, At Least On Retail Sites

Highly recommend this reading that highlights the importance of marketing technologies and ROI improvements.

“It’s a golden opportunity for retailers, as in theory and in practice, marketing technologies help drive conversion which drive sales, which is what retail is all about,” Herman said. “The benefit is better consumer experiences, better conversion rates, and a more modern retail construct.”

Read more http://www.adexchanger.com/data-nugget/dsps-stole-ad-networks-thunder-in-q4-at-least-on-retail-sites/

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Android Is The Number One Mobile Target For Malware.

What’s in your pocket?

As Android grows in popularity, so do attacks from malware on Android phones. A new report fromMcAfee says Android is now the number one mobile target for malware. Apple’s iOS is targeted so little that it’s not even in the McAfee report. Read more here http://bit.ly/oHhWIh


Why Smartphones Make DOOH Better

The rapid growth of smartphone adoption in the North American market means that very soon, the majority of mobile users will be walking around with very small, always connected laptops in their pockets and purses. Naysayers suggest this spells the end for many other forms of media. While that overstates matters, smartphone usage will invariably change the way media consumed. But suggestions from some quarters that digital place-based media is rendered immaterial by smart handsets are simply wrong.

There’s no end of screens and devices looking for your attention the moment you head out the door of your home or office. There’s good news. All that technology is evolving, adjusting and converging into what’s called location-based media.

Smartphones, geo-based mobile services, proximity devices and place-based digital advertising screens have evolved into a powerful opportunity for brand marketers to reach, influence and engage consumers at just the right moments, meaning,throughout their day. Read more here http://bit.ly/qOpzka


CES 2010

I was not able to make it to Vegas this year so I am relaying on the posts from Dave Morgan from MediaPost.

Early Report From CES
by Dave Morgan, 8 hours ago

I’m in Las Vegas today, attending the Consumer Electronics Show. The city is crawling with folks fascinated with the latest in consumer devices, from gadget geeks that hang on every word of the Wall Street Journal’s Walt Mossberg, to the digitirati trying to find the next big thing. The show officially kicked off last night with a keynote from Steve Ballmer touting Microsoft’s tablet PC software — and it will be in high gear for the next several days, starting with the opening of the exhibit floor this morning. It’s still early to know what big stories will come from this year’s show, but here are some of the themes that have been buzzing around so far:



Internet Ad Spending Increase Stands Alone in 2009 Forecast

According to a new release and ad spending forecast by ZenithOptimedia, current ad expenditure forecasts predict a steeper decline in North America and Western Europe, with all regions joining in the general decline. The report forecasts global ad expenditure to shrink by 6.9% over the course of 2009.

Entering Q2, 2009 says the report, there is limited long-term visibility in the market as most advertisers wait until the last moment to confirm their spending commitments. Many are treating advertising as a discretionary expense, and one they find convenient to cut. Unprecedented economic problems and events affecting the predicted 6.9% decline in global ad expenditure in 2009 include:

  • Lack of quadrennial events (Olympics, elections) creates tough year-on-year comparisons for markets like the US
  • Poor corporate confidence means very limited visibility in the market
  • Consumers are putting off big purchases and shifting consumption from premium to value products, opening opportunities for advertisers with value to offer
  • Consumers are spending more time at home, consuming more media, particularly television and the internet
  • Search is driving internet growth as consumers use it to find bargains
Advertising Expenditure By Region (newspapers, magazines, television, radio, cinema, outdoor, internet; US$ million, current prices)
2007 Y/Y Chg % 2008 Y/Y Chg % 2009 Y/Y Chg % 2010 Y/Y Chg % 2011 Y/Y Chg %
North America

$188,300

2.7%

181,269

-3.7

166,299

-8.3

163,811

-1.5

165,768

1.2

USA only

2.5

-4.1

-8.7

-1.7

1.1

Western Europe

120,177

6.0

118,894

-1.1

110,875

-6.7

112,090

1.1

115,835

3.3

Asia Pacific

99,583

6.8

102,584

3.0

99,071

-3.4

101,704

2.7

108,480

6.7

Central & Eastern Europe

31,634

22.4

35,071

10.9

30,190

-13.9

31,559

4.5

34,547

9.5

Latin America

26,422

16.3

29,676

12.3

29,070

-2.0

31,128

7.1

32,969

5.9

Africa/M. East/ROW

15,931

22.6

19,241

20.8

17,750

-7.7

19,664

10.8

23,069

17.3

World

482,047

6.7

486,734

1.0

453,254

-6.9

459,956

1.5

480,668

4.5

Source: ZenithOptimedia, April 2009

Ad expenditure correlates strongly with corporate profits, acknowledges the stuey, and the ad market is unlikely to start its recovery until profits start to pick up again. The current barriers to recovery include lack of trust in the credit markets, and low confidence in prospects for short-term growth. In addition:

  • Consumers are spending less, saving more, and spending more time at home. Consumers are putting off the purchase of big ticket items and shifting their consumption habits from premium products to budget brands
  • In the retail sector premium stores are bringing in value lines and advertising their presence
  • In the finance category, corporate advertising has fallen off quite sharply, but consumers’ increased appetite for saving and risk aversion means that savings accounts and certain types of insurance are still growing
  • Spending by CPG advertisers has generally held up well; There has been a clear shift from premium to value products as companies respond to consumer demand
  • The automotive industry is suffering from long-term problems that the downturn has exposed and exacerbated, but not caused. Regulations, high labor costs and other structural problems left auto manufacturers with very thin margins. In France and Germany, however, government incentives have led to increased sales in the short term, and increased automotive advertising. Smaller, generally foreign, brands have managed to gain market share by promoting their value proposition
  • Businesses have cut back their travel expenses, causing a large drop in premium traffic for airlines. But leisure travel is still popular to countries where exchange rates now look very favorable to consumers spending in euros or US dollars. Airline advertising to consumers is still active in markets with strong exchange rates

Globally, some of the ZenithOptimedia ad expenditure projections include:

  • Ad expenditure to shrink by 8.3% in North America in 2009
  • All the major markets in Western Europe are expected to grow in 2010 with the exception of Italy, expected to shrink another 0.8%
  • Asia Pacific is expected to drop by 3.4% in 2009, though expecting growth in ad expenditure in China, India, and Indonesia, counterbalanced by sharp falls in Taiwan, Singapore and South Korea and a 5.0% fall in Japan, which still contributes 38% of the region’s ad expenditure
  • Central and Eastern Europe is expected to suffer the sharpest drop-off in 2009, of 13.9%. Large drops seen in markets like Russia, Turkey and Ukraine are felt to be one time corrections by international advertisers as they reassess the long-term growth potential of these markets, and expect to see a return to growth in 2010.
  • Most markets in Latin America are still growing, but the region is dragged down by Brazil and Colombia.

In considering global advertising expenditure by medium, the report concludes that, as consumers are saving money by spending more time at home, media consumption is increasing, particularly of television and the internet.

US Advertising Expenditure By Medium (US$ million, current prices)
2007 ($x000) 2008 2009 2010 2011
Newspapers

$128,553

121,636

107,005

102,651

102,866

Magazines

57,789

55,136

49,046

47,549

48,155

Television

178,169

183,277

173,158

179,146

186,573

Radio

38,198

37,361

33,621

33,204

34,041

Cinema

2,287

2,421

2,336

2,472

2,675

Outdoor

30,546

31,395

29,276

29,914

31,792

Internet

41,352

49,994

54,298

60,438

69,695

Total

476,894

481,219

448,740

455,373

475,797

Source: ZenithOptimedia, April 2009

The internet is the only medium expected to actually attract higher ad expenditure in 2009, thanks to its accountability and innovation in ad formats, says the report.

Most of this growth will come from search advertising, concludes the study, as consumers considering a purchase are using search more as they seek out the very best deals. In the US, the report predicts search advertising to grow 9.0% in 2009, while classified grows just 1.8% and traditional display shrinks 1.8%. Internet video and rich media is forecast to grow 29.8%, internet radio 29.7% and podcasts11.9%, but these represent only 12% of US internet expenditure between them.

The study expects television ad expenditure to fall 5.5% in 2009, but this represents an increase in market share from 38.1% to 38.6%, followed by a record 39.3% share in 2010. Advertisers that cut budgets across the board will often cut television last, since they know it best and are convinced of its effectiveness, concludes the report.

Please visit ZenithOptimedia here for more details about the forecast.


The Paradigm of Transformation

We are going through a period where media and communication models that have been used to deliver messages to consumers at eroding at a rapid pace. That in combination with the transfer of control from marketers to consumers has left traditional media and the echo system they support wondering what to do next. The shift is taking place among all segments of the population. This is both a tread and an opportunity for companies that develop new communication models and understand the role consumers play in a brand’s strategy under the new paradigm. There is no magic potion but the answer lays on a good understanding of the basics: know your target and how your product or service satisfies a specific need in the target.

Confronted with these changes, marketers can not use the same strategies they have used for the last 30 years. It is not about old or new media, it is about the role consumers have taken as creators of content whose distribution is facilitated by technology. This content can be in the form of a consumer complaining about your product and notifying the entire network in Facebook or all their followers in twitter. So brands listen up to what consumers have to say and use the same technology to empower your brand evangelizers.

The common denominator here is that the same technology consumers use to communicate is available to brands and they can identify trends and truthfully engage audiences in a conversation. You may not have the entire resources in house and need to bring them on board or outsource. There is no single formula for success. What can make a difference is the preparation of your internal resources along with a strategy that was derived from research and arrives at the intersection of a clearly defined consumer profile and how your product or service satisfies a specific need.


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