Browsing "online advertising"
A flurry of new information released as part of Forrester research predicts a huge change of emphasis from traditional media to online advertising over the next few years. In particular, Search Engine Optimization (SEO) and Pay-Per-Click (PPC) are due to double over the next five years according to the Forrester report.
In the US, digital marketing will become $55 billion industry by 2014, representing 21 per cent of the overall marketing spend. In the UK, online advertising spend already controls over a fifth of the overall advertising market, but the trend predicted by Forrester is that online will continue to flourish while other aspects perish.
The most interesting takeaway from the research is that overall advertising budgets will decline. Yep. With dollars moving out of traditional media toward less expensive and more efficient interactive tools, marketers will actually need less money to accomplish their current advertising goals.”
The message is getting through that online marketing can achieve the same as traditional media for less. A paradigm shift is occurring, with 60 per cent of advertising gurus ploughing money into digital media rather than the normal advertising avenues. Up to 59 per cent of the increase in advertising spend will be allocated to SEO and PPC.
PPC is currently much more prominent than SEO with most companies preferring to invest in paid search. However, as organic search starts gaining more widespread traction, more brands will turn to search engine optimization to drive traffic naturally to their websites. By 2014 the US will spend over $5 billion on SEO according to the Forrester research.
An ex-AOL executive has launched a new online news delivery system in America which hopes to capitalise on the changing trend from traditional print advertising to online advertising.
Advertising spend in traditional media has been on a downward trend for a while now, whereas internet advertising has been a lone bastion of growth in an otherwise declining industry. Newspapers, journals and magazines in particular, the “print” collective, have suffered more than television and radio in terms of incoming advertising revenue.
As traditional journalism fades, the logical step is to move to online journalism and capture advertising space to compliment news articles online. Lewis Dvorkin, a previous writer for the New York Times and Wall Street Journal has formed True/Slant along with former colleagues from AOL News.
True/Slant officially launched some eight weeks ago in April but entered beta testing phase earlier today. The site is a mix of blogs and industry news generation, bringing together professional journalists from the BBC, Boston Globe, New York Times, CNN and other news services to contribute articles.
Adverts run alongside the articles, and contributors are either paid a stipend or a share of the online advertising revenue generated from the article. Mr Dvorkin’s vision is to create the newsroom of the future: “What we’re trying to do is combine traditional standards and values and standards of traditional media with dynamics of the web,” Mr Dvorkin told the Financial Times.
The project was given a $3 million financial backing from Forbes and Fuse Capital. True/Slant hopes to be at the forefront of news delivery online, enabling the internet community to “efficiently find relevant and interesting news culled by contributors they respect.”
When the economy turns sour just about every company starts to cut expenses and usually the first thing that goes is the one service where the perceived value is less. Search engine optimization is one of those services that could be threatened by the recession.
I would strongly caution against cutting back on your SEO for your business. Companies that I’ve seen do that have in the past regretted it. Typically what happens is they’ll see their search rankings decline. After dropping off the first page they’ll see fewer and fewer visitors to their websites and that will result in fewer conversions and less overall sales. Almost always these customers restart their optimization and they have to claw their way back up the search engine ladder to top rankings. That takes longer usually than the drop off and takes more resources long term.
It may seem that a recession is the time to cut expenses, but you don’t want to cut your marketing expenses. It’s really the time when you should be marketing more, not less. If you think of search engine optimization as a part of your overall marketing strategy then that puts it a little more into perspective.
Don’t you think?
The run up to Christmas, 2008 has seen e-commerce become the focus for retailers across the UK.In the light of rising costs and consumers reigning in their spending to save money, the Internet is now seen as the place of choice for consumers, for comparisons and significant savings. Internet marketing for e-commerce sites has become the chosen method of promoting retail businesses.
“With Internet marketing and digital advertising budgets increasing, traditional advertising is being replaced by cost-effective, targeted, digital advertising and marketing campaigns”,
The credit crunch recession has seen closures of retail outlets, both in London and across the United Kingdom, leading to an increase in Internet sales with the Internet being viewed as the buyer’s market.
The UK’s Office for National Statistics (ONS) reported that between May and June 2008, retail sales volumes fell by 3.9%, the largest monthly drop since records began in 1986.
Yet online sales have been strong. In fact, Internet sales may be rising more rapidly than anticipated because hard-pressed consumers are determined to find value for money. Also, the rocketing cost of fuel means many shoppers are cutting visits to brick-and-mortar stores and turning to the Web instead.
Major online retailers are realising that to maintain a presence in the market, they need to offer true multichannel shopping and delivery/return options, as well as value for money. This strategy ensures they will gain and keep their market share in the future. The businesses that are not moving towards Internet marketing, and digital advertising, for whom traditional print or broadcast advertising is now too expensive, are likely to stagnate or go out of business.
As budgets tighten, media such as display ads will come under scrutiny.
There are two schools of thought when it comes to how digital advertising will fare in the grip of a recession. On the one hand, optimists see tight budgets accelerating the shift from less measurable traditional media into more targeted digital channels. The pessimists, however, point out that stagnant budgets affect all marketing, even if digital outlets fare better.
Against this backdrop, experts expect marketers will continue to push for new ways to reach audiences through digital channels. Tried-and-true methods like search marketing look to remain stable, while advertisers pay more attention to getting more solid metrics on how consumers were influenced before they type a query into a search box.
That means old school methods like display ads and microsites will come under pressure. Social media looks set to remain on the top of advertisers’ agendas, as they look to apply the lessons of their early missteps in the area while adding real measurement to what have been experimental forays to date. As the Internet becomes more social, there will likewise be an acceleration of a move from purely technical implementations to using the Web’s emerging social infrastructure to connect on a more human level.
According to researcher eMarketer, online ad spending will climb 8.9 percent next year, from $23.6 billion to $25.7 billion. Back in August, just prior to Wall Street’s meltdown, eMarketer predicted that spending would surge 14 percent in 2009. But the economy is now taking its toll on all segments of media. Here is a roundup of how that spending may pan out:
Display ad blues
The Web has moved well beyond its former role as a place where banner ads and microsites are used to support the real meat of the offline marketing. Nowadays, the most high-profile campaigns are centered on the Web. Take “Whopper Virgins,” the latest Burger King push from Crispin Porter + Bogusky. The centerpiece is a Web film, which is then spliced into components for traditional media. What’s more, the push has relied on the viral buzz of blogs and other digital outlets as much as big-money media buys.
Those type of efforts will put pressure on “traditional” digital efforts like run of the mill banner ads pumped out through ad networks and Flash microsites without any compelling reason for anyone to visit.
Forrester Research expects display ads to come under the scrutiny of tight-fisted marketers uncertain of their effectiveness.
Pricing is expected to rise just 8 percent after several years of uninterrupted, solid expansion. “The financial pressure will be severe,” said Dave Morgan, a former AOL executive. “When you take out big chunks of money, it’s not just the spend that disappears but also the competition.”
Online advertising will continue to grow at a blistering pace, in Canada growing over the immediate future into a $3.4 billion US industry. The public is moving online at home, at work, on their mobile phones, in order to access multi-media content and information.
Online advertising is experiencing unparalleled growth in Canada, passing a 33% growth to $1.3 billion US last year. It’s projected that by 2012, web-based advertising is expected to remain “Canada’s fastest growing segment” growing by an additional 21%.
The fastest projected movers will be keyword searches, classified advertising online, and online video advertising.
The Internet will overtake television as the biggest advertising medium in Britain this year, with over 19 percent of total ad spend, according to a forecast by Enders Analysis.
The main engine for growth continues to be paid search on sites such as Google but Enders said it had also seen early signs that the popularity of online video is now making a small contribution to a shift in advertising from television to the Internet.
Analysts previously said advertising budgets had moved to the Internet at the expense of newspapers in Britain — the most developed online advertising market in the world.
“Rising internet consumption and surging consumer e-commerce continue to drive strong growth in online advertising, particularly paid search, in spite of the deteriorating economic outlook,” the report said.
“Our forecast for 2008 is that online advertising expenditure will grow 26.4 percent in nominal terms to 3.56 billion pounds ($7 billion), overtaking TV ad spend, which we expect to fall 2.5 percent to 3.39 billion pounds.”
The report said Google would remain the biggest beneficiary of the growth in search advertising and predicted it would take 80 percent of UK spend on search advertising, up from 78 percent in 2007.
It predicted growth in online classified advertising, which increased 54 percent in 2007, would slow in 2008 due to declines in recruitment and property listings.
One source of growth is online video, however this could still be hard to develop as many of the most popular videos are short and user-generated clips put on sites like YouTube.
The report said broadcasters and online portals were achieving high CPMs — the all important cost per 1,000 views of an advert and a common industry metric — for in-stream video ads, reportedly averaging around 20 pounds, compared to 6 pounds for television spots.
However it warned that the high prices were a result of limited supply and said they would fall as volumes increased.
“In total, we estimate online video advertising will amount to about 35 million pounds or 1 percent of TV ad spend in 2008, with many advertisers using existing TV spots, the report said.
“Not all this money will come from TV budgets, but there are early signs of a direct shift in spend from TV to the Internet over and above the broader shift to online.”
Enders Analysis provides independent research on Telecommunications, Media and Technology.
Bloggers have become a “very important” target for press releases, according to the Society for New Communications Research (SNCR) study.
More than two thirds (67.7 per cent) of firms rated reaching bloggers as “important to very important” less than six per cent below the number that held traditional media in the same regard.
The research also indicates that small to medium-sized enterprises are increasingly attempting to engage bloggers with press releases and become part of the online marketing conversation.
Just under one quarter of those issuing online press releases were small businesses.
SNCR research fellow, Dr Michaela Vorvoreanu, the results suggest the standard press release has become an important “news release” targeting the public “directly”.
She explained: “News releases are not just for the Fortune 500, but have become a valuable tool for smaller businesses to increase their sales and create publicity.”
However, affordability remains an issue for many firms taking this approach. Perhaps search engine optimization (SEO) would be a better option?
Came across this blerb in Winnipeg
New media is proving to be a slippery fish, and the fat cats heading our media empires are approaching the Internet the way a 16-year-old virgin approaches a bra that clasps in the front.
The world is changing faster every moment, and small, independent media companies that used to be able to adapt are now great lumbering leviathans that don’t even know how many arms they have. These archaic money factories are suddenly feeling like the rug is being pulled out from under them as newsprint costs rise, distribution models fail, DVRs strip away ads, and pockmarked kids use the Internet to wreak havoc with broadcasting and copyright laws.
According to TNS Media Intelligence, U.S. Internet advertising revenue passed that of radio in 2007, meaning the web has knocked off one of the big three that had been coasting along since the days of Orphan Annie decoder rings – and don’t think the suits in print and TV aren’t feeling a few beads of sweat running down their greasy backs.
And so what are our media companies doing to keep up with the times?
Simply put, many are stupidly devaluing their products in clumsy, base attempts to suck in more dollars.
For example, many print outlets are butchering their online content with pop-up ads that appear after you start reading and actually obscure the text. They trick you into looking at them, and they’ll only disappear after a certain amount of time unless you can locate the tiny ‘close’ button hidden oh-so-carefully in the ad.
And here’s where great journalists such as Edward R. Murrow roll over in their graves.
On the surface, all this may seem petty. You just wait for the ad to leave and you read the story. But if you really think about it, you’re now being forced to view advertising, and you’re seeing what I consider actual proof that media outlets no longer care about their content.
Think about it like this: if 9/11 happened today, you might go online to read breaking updates from Ground Zero.
“America is in shock after one of the worst.” the story might start – and then comes the pop-up ad some publisher believes is more important than critical news.
I think this kind of advertising is a sign of things to come. Print has already sold out with ads that purposely blur the lines between advertising and news, and TV and radio are wastelands of product placement, infomercials and sponsor tags. I’m sure we’re only a few years away from DVDs that force you to watch previews and commercials.
I don’t like being forced to do anything, and I think it’s a truly dark day when journalists roll over and allow their work to be covered up by an ad, even if those in charge parrot lines such as “ads pay the bills.”
Advertising dollars may indeed pay the bills, but media does not exist for its clients. Media exists for people, and outside of the Cannes Lions and the Super Bowl, no one goes looking for ads. Ads are secondary to actual content, and when that content is cheapened or eliminated, the product is worthless and ultimately unmarketable.
Good writing sells papers; advertising does not.
Our media empires should realize that before it’s too late.
You have a product no one else has. You know everyone will want one. You have a stocked warehouse, delivery mechanisms in place and a staff ready to blow the roof off the industry. Now, how do you get the message out?
Conventional wisdom says to hire an ad agency and let them spend thousands of your dollars on dated marketing materials like print ads, broadcast spots and posters that no one will even see. Sure, it will look nice and be colorful but you need buyers not admirers and if you want to succeed in today’s digital world you need a web site and you need that site optimized to its fullest potential.
Consider the costs of producing even a one page print ad and placing that in the few magazines and newspapers that still circulate. You’re virtually at the mercy of media directors who don’t have the time for you media buyers who try to get deals for their agencies not you, media planners who think of you as a number and a creative team that likes to follow their instincts, not your vision. You could be looking at six figures, minimum… and that’s before anything has even been done. And how often do you hear people talk about a print ad they saw? Exactly. Now, for a fraction of that cost you could completely optimize your entire web site so search engines from Google, MSN and Yahoo among many others will hone in on your site, rank you near the top of searches and expose you to the millions of people who matter most: the consumers.
Ad agencies don’t want you to know this because it could make them obsolete. Everyone loves creative ideas and quality work but if it’s not getting you any customers then what are you spending your money on? Save your capital and your time by riding the wave of the future, search engine optimization. Through keyword density, custom content and creative programming a talented SEO can do in an hour what it might take and ad agency months to produce and your results will be seen online instead of waiting even more months for a tracking report on whether or not anyone saw your ad in a newspaper. Don’t waste valuable time. Get online and get optimized today.