Mobile Advertising Revenue Grows
Advertising in the media must adapt to survive in 2009
Broadcasters, distributors and media buyers believe that because we now live in a video on the world in which consumer demand control what they watch and when, the model of radio advertising is broken. And while the media industry is still sorting through their situation on television, perhaps most troubling of news is that due to difficult economic conditions in the world will face in 2009, all indications are that online ad spending will dip this year next. What can media companies and advertisers to wade ad in this ecosystem? The short answer: they will change the way advertising is bought and sold, measured and delivered.
Traditional viewers is eroding. In October, the four largest networks Mailing reported declines in public between the ages of 18 and 49. Many analysts believe that the eyes move to online television. Advertising Age, in a study on social networks and its impact on television, found that 25% of users of social networking sites like Facebook said they spent less time watching television because of the time they spent online. And over a third of all 12 to 64 YEARS online indicated that they use social networking sites regularly. With the public being diverted from television, and use time-shifting digital video recorder (DVR) like TiVo technology to place ads while watching TV, advertising revenues to be in the broadcast media are declining.
Thus, media companies should simply follow their audience online, right? The image is unclear. The current economic climate is the erosion of advertising spending in all areas. TechCrunch says that in the third quarter, Google, Yahoo, Microsoft and AOL are collectively drew their only increased by 0.6% in the fourth quarter of online advertising revenues by quarter. MediaPost.com reports that while online advertising revenues grew 11% year to date, compared to last year's growth of 26%, growth has almost stagnated in 2008. They predict that 2009 will be flat in the first year of online ad spending since 2003. Others offer more opportunities darker. In a survey of participants at AdTech New York private equity firm Halyard Capital is most budgets Digital marketing is 10-20% in 2009.
And even worse news for media companies: the rates that advertisers pay for digital advertising space, as measured by cost per thousand impressions (CPM), are declining. According to a study by Morgan Stanley, the average CPM a banner was dropped from $ 3 to 1 over the last ten years. A consensus seems to be is because of the proliferation stocks (places on the Internet to view these announcements). In China, advertisers pay as little as $ 0.05 CPM because of the rapid explosion of stocks. And MediaPost expects that this drop in rates advertisers pay to extend the online video advertising in 2009, which is an area that has received peak two years of CPC.
But what about those social networks where viewers are being developed? Are they offer hope? Halyard Capital has revealed that 68% of respondents think social networks are in the "strong position to expand" between alternative marketing channels over the next two years. Advertisers see the vast potential of social networks as a channel in which to better target advertising to consumers because of all the personal information is shared. And content providers see opportunities to connect traditional media and social networks. Broadcasters are beginning to integrate their functions in the community of readers online video. Companies like Joost are draw in social networks like Facebook for social video sharing.
At first glance, then, social networks seem promise as a haven of advertising downturn. Sites like Facebook, MySpace and YouTube provide a very large number of pages viewed, number above average page views per user, and a time average over the site. In a world based on CPM, this massive pool of pageviews is a treasure trove of "inventory" because of the multiplicity of eyeballs. The problem, however, is that the data show that performance Real ads on these social networks is absolutely pathetic. The CTR on these sites are 10 to 100 times lower than the average for banner ads who were already in the range of 0.1 percent to 1 percent.
According to Dr. Augustine Fou, senior vice president of digital strategy at MRM Worldwide, a digital marketing agency, the nature of social networking sites makes them unsuitable for traditional advertising:
"While most major Web 1.0 sites (Yahoo, CNET, New York Times, etc.) were the content sites that aggregated the massive public and supported many page views, the largest Web 2.0 sites are social networking sites. The nature of these two types of sites is very different. Users go to the Web 1.0 sites and portals to read the content or do e-mail by themselves. Users go Web 2.0 social networks to interact with others and are generally so immersed in their socialization are even less likely to see, much less act, ads, despite the large number of pageviews generated per session. This may explain in part the click through rate significantly lower for ads on social networking sites. "
Ted McConnell, general manager of interactive marketing and innovation at Procter & Gamble Co., posits that social networks are not only ineffective channels for advertising, they are totally inappropriate places market that attempts to do away consumers. McConnell raises the question for advertisers: "What in heaven's name made you think that you could monetize real estate in which someone is upset with their girlfriend? "He notes that" media social "is not really" media "at all. Media is a one-way communication that contains spaces that are for advertising inventory. Social networking is a dialogue between consumers, where advertising is disruptive. Consumers did not intend to create media they intended to speak to someone.
If television advertising revenue is down, spending digital advertising on the whole tends to decline, and social networks can not keep their promise of reaching consumers, which can advertisers and media companies do to weather the storm? Advertisers should ensure they get the best return on investment they can about their advertising dollars remaining. Instead of paying for the greatest number of eyeballs they can, they should focus on advertising best placed to make a conversion. Online, it probably indicates a required change from a CPM model, where advertisers pay for the number of people who will see an ad, to actions based on performance. A model based on ad performance would advertisers pay only for clicks or other target consumer actions.
McConnell predicted that the economy deteriorates, the fortune of the performance-based advertising increase as the models based printing weaken. "Spray and pray is a little harder to do when you are under economic pressure, he said. "So the performance-based advertising will gain market shares in MMC."
And according to Mr. Bishop, "the Web 2.0 landscape advertising, many advertisers have already exceeded the cost per thousand impressions (CPM) model at a more measurable and accountable per-click (CPC) model (eg Google Adwords), in which they pay only when users click, no matter how many times the ad is displayed. Some are even went to the next stage of cost per action (CPA), where the advertiser does not pay until the user does the desired action, for example, make a purchase. "
How media companies can meet the demand for performance-based advertising? It is not enough to simply make the inventory available now, these companies must ensure that the ads will be effective. This means that it will more important than ever to target the right ad to the right consumer at the right time. And media companies will be working directly with advertisers to ensure that advertising is tightly integrated with the content in a way that ensures the proper context and timing for the message.
A channel that offers some interesting promises for the targeting of mobile content. 62% of participants ADTECH surveyed cited by halyard as the mobile advertising platform that will be the strongest growth over the next two years. Mobile has the potential to target consumers at the right time and right place. Imagine walking into a drug store and receive a coupon via text message on your mobile phone for a nonprescription analgesic. It is the power advertising based on location, made possible by the proliferation of global positioning systems (GPS) on mobile phones, which allows suppliers to know exactly where you are. This is not science fiction – companies like Loopt and NAVTEQ have already begun to serve ads based the location on a handset near you.
And while social networks may not be the Holy Grail by providing a channel for advertising, their vast potential for understanding and targeting consumers may still be the key to effective advertising in a world based performance. Dr. Bishop says that "By redefining social networks as" conversations and collective actions of customers, as evidenced in line "Advertisers can instead use social networks as places to do research-for example, test messages with real clients in a real environment, listen how customers describe their products or services to their peers, or get ideas for new products or how to improve products current. And finally, advertisers can identify influencers, gurus or "heavy" on social networks (those who are most active in speaking, advertising or sharing) and let them beta test and write about their product or service. "
Not only social networks can help advertisers better identify, understand and influence their goals, they have the potential to extend their reach exponentially. According to Advertising Age, it is "new evidence that the mapping relations among online consumers – to create what is called social graphs – can be just as valuable as traditional targeting and segmentation to predict how people will respond to marketing messages "idea. is not only to your target market of consumers identified, but the market for other people in the social network that consumer. The theory is that advertisers should involve "consumers who are already connected and share common values and beliefs, a concept called homophily. "Yahoo and several small start-ups are beginning to prove this theory.
Finally, there may still hope for television. In early November, Dish Network has an agreement with technology advertising firm Invidi which involves the creation of "receptors peak" capable of "targeted advertising" and "dynamic insertion commercial. "Advertising Age, what it means is" Ather [r] to bomb millions of viewers with ads for the same things much of them can not be looking to buy, advertisers could within two to three years pass different ads for different households – ensuring, for example, Procter & Gamble did not pay for ads Pampers monitored by a childless couple wee tykes and General Motors would not show ads for its Hummer vehicles in front of a room full of fans Prius. "Experts estimate that if consumers are presented with highly relevant advertising, they are much less inclined to ignore the announcement of their DVR.
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