In Case You Missed It January
Tuesday, Jan 31, 2012 10:00 AM EST
By Mike Walter, VP Strategic Services
Streaming expected to unseat display as radio’s largest digital revenue generator.
BIA/Kelsey forecasts online revenue will jump 15.1% in 2012. But the digital media mix will change, with in-stream audio ads emerging as radio’s most lucrative digital channel this year, eclipsing display advertising for the first time. Propelled by a 129% increase over 2011, streaming audio revenue will put $157 million on radio’s books in 2012, up from $64 million last year, according to Borrell Associates. Pureplay webcasters will bill more than twice that, about $418 million.
Read More: www.insideradio.com
What’s Coming In 2012: Digital Advertising, Up Close And Personal
PaidContent.org 12-30-11 by Ingrid Lunden
According to figures from ZenithOptimedia, global advertising revenues will reach $486 billion in 2012, a rise of 4.7 percent compared to 2011. With wider economic pressures bearing down on the overall ad market, digital ad spend is still seeing healthy growth: it will account for slightly more than one-fifth of all ad spend, but more than half of all growth, as advertisers become more confident in digital media metrics, and the ad industry gets more sophisticated in what it offers to brands and publishers in the name of digital advertising—which will remain a key way of funding digital content, as media companies continue to tinker with other charging models.
Here are some specific areas to watch in this space:
1. Social media and advertising.
2. Ads get a bit more personal.
3. Consolidation: small, medium and large?
Analyst: Netflix Now the 15th Most-Watched TV 'Network' in U.S.
Hollywood Reporter 1-4-12 by Georg Szalai
Netflix would now be the 15th most-watched TV "network" in the U.S. and could be the second most-watched in Netflix homes, BTIG analyst Richard Greenfield wrote in a blog post Wednesday…subscribers streamed more than 2 billion hours of TV shows and movies in the fourth quarter.
...Greenfield estimated that "Netflix is actually number 15 with 666 million hours monthly or 2 billion per quarter — our prior analysis estimated number 25." That would on average equate to 1,905 minutes of Netflix viewing per month per subscriber, or 64 minutes per sub per day, or 32 hours per sub per month.
Digital To Get Bigger Slice Of Ad Budget Pie
MediaPost 1-9-12 by Aaron Baar
In 2012, 60% of marketers’ digital advertising budgets will be devoted to online branding, according to a survey conducted by ad tech company Vizu. It found that 64% of markets will increase their online brand advertising budgets, with more than a fifth saying they planned to increase them by 20%. (Comparatively, only 56% of marketers said they planned to increase their online direct-response budgets.) Similarly, 60% said they were re-allocating dollars away from direct-response and into brand initiatives.
“Brand advertising is becoming a bigger and bigger part of the digital experience,” Jeff Smith, chief marketing officer at Vizu, tells Marketing Daily.
Smith gave three reasons for the increases.
1. First, more consumers are migrating online.
2. Second, many marketers are being asked about their “social media strategies"
3. Finally, Smith says, the space offers better measurement than many previous brand advertising channels.
Hulu Reports $420M in 2011 From Ads and Subscriptions
ClickZ 1-12-12 by Christopher Heine
Hulu's revenue totaled $420 million in 2011, a year-over-year increase of 60 percent, the online video service reported on its blog today. That sum represents a staggering 4X growth since 2009, according to privately owned Hulu, which also stated it has 1,000 brand advertisers in the fold.
In 2011, Kilar's firm picked up around 1.2 million subscribers to Hulu Plus to bring the subscription business to more than 1.5 million total users.
If Hulu got 100,000 new subscribers each month to reach the total of 1.5 million by year's end, Hulu would have generated about $90 million in subscription revenue in 2011.
Study: Movement to mobility is at full throttle.
Inside Radio 1-13-12
Nearly half of U.S. tablet and smartphone owners (45%) have downloaded a music application in the past 30 days, making it second only to games as the top app category, according to Nielsen.
...just over half (51%) of U.S. consumers say they’re okay with receiving advertising on their devices if it means they can access content for free.
In a separate global study by management consulting and tech services giant Accenture, about one third of 18-34 year olds use streaming music services, compared to 20% of consumers aged 35+ and 25% of the total population.
Read More: www.insideradio.com
CD Players Make Slow Exit From New Cars
Chicago Tribune 1-17-12
Cars without CD players will become the norm in the next five years, according to Automotive News.
Around 331,000 cars will be sold without CD players by the end of this year, said to John Canali, an analyst for the research company Stratacom. Canali expects that number to jump to 12.1 million vehicles by 2018.
Consumers are using their CD players less often and are instead opting to use their smartphones to play music. In turn, automakers want to get rid of optical drives because they're expensive and mainly appeal to older motorists, Canali says.
A record year for royalty collections.
Inside Radio 1-18-12
...SoundExchange says 2011 was a record year. It distributed $292 million last year, up 17% from a year earlier.
Pandora is estimated to be on the hook for $130 million in 2011 royalties and Sirius XM Radio contributes about $150 million a year —however satellite radio subscribers are charged a monthly $2 fee to help defray those costs.
Read More: www.insideradio.com
ComScore Study Confirms What We Already Knew: You're Wasting Money on Ads No One Sees
AdAge 1-18-12 by Jason Del Rey
One of the not-so-secret realities of the display-ad world is that a decent chunk of online ads are never viewed by web visitors. They either appear below the dreaded fold, or a user scrolls past them before they load.
One of the key findings: 31% of the 1.7 billion ad impressions were never in view.
The study found that 72% of the campaigns had some ads running alongside content that wasn't "brand safe" -- an admittedly squishy term.
The software can only be used to track display ads on computers, and not on tablets or mobile phones, Mr. Abraham said.
US Online Ad Spend to Close in on $40 Billion
US online ad spending will post growth well above 20% again this year to reach nearly $40 billion, eMarketer estimates...
Double-digit growth is expected through 2014, when US online ad spending will reach $52.8 billion. In 2016, eMarketer expects advertisers to spend $62 billion online.
Fast growth has put online ahead of some traditional media, especially print newspapers and magazines. This year, US online ad spending will exceed the total spent on print magazines and newspapers for the first time, at $39.5 billion vs. $33.8 billion.
Overall, eMarketer expects total media ad spending to grow 6.7% this year to $169.5 billion, boosted by national election campaigns and gains in mobile spending.
Millennials Remain Difficult To Reach
MediaPost 1-24-12 by Laurie Sullivan
Digital ads will become more creative in 2012 to motivate a generation often characterized as "stimulation junkies," as marketers focus on capturing 79 million U.S. consumers born between 1981 and 2000. It turns out that 93% of those ages 18 to 34 -- the Millennial generation -- are Internet users, compared with 88% of adults ages 35 to 54, and 42% of adults age 55 and older, according to a new report.
Overall, influencing millennial-generation consumers through an ad remains far more difficult compared with other generations because of the low immediate and delayed recall rate. The study indicates that millennials have 43% immediate recall and 24% delayed recall of an ad, compared with 50% and 23% for Generation X, 54% and 21% for baby boomers, and 54% and 18% for seniors, respectively. The study suggests that it is important to show the product longer, make the brand name more visible, and have more mentions throughout the campaign.
Millennials Trust People, Not Brands, When Buying
MediaPost 1-26-12 by Laurie Sullivan
Marketers that are trying to connect with millennials ages 18 to 34 to promote products and services related to love and Valentine's Day might want to consider tapping social influencers who produce user-generated content (UGC). This generation trusts people rather than brands, and values the opinions of like-minded strangers as much as people they know, according to a new study scheduled for release Monday titled "Talking to Strangers."
About 51% of millennials are more likely influenced by UGC produced and posted by strangers, compared with recommendations from friends, family and colleagues, but only 34% of boomers agree.
In fact, 84% of millennials report that UGC from strangers has some influence on what they buy.
Seventy-three percent of millennials believe other consumers care more about their opinions than companies do; that's why they continue to share their opinions online. They view companies that include customer feedback on their Web sites as honest, at 66%, and credible, at 53%.