By Mike Walter, VP Strategic ServicesFriday, Feb 01, 2013 3:40 PM EST

In Case You Missed It January 2013

Gracenote’s Ad Replacement System That Personalizes TV Commercials Will Start Trials In 2013

TechCrunch by Josh Constine 12/26/13

Most TV commercials are poorly targeted and show things you’d never buy. But not for long. Gracenote‘s new ad replacement system combines viewing habits with personal info to show you more relevant commercials. Gracenote will demo it at CES and start trials in 2013. The rev-share is still in talks, but higher CPMs could enlarge the $70 billion TV ad market and give Gracenote and partners a nice cut.

A smart TV or set-top box with Gracenote’s ad replacement technology uses video fingerprinting to identify what you watch and when a show is about to go to a commercial. It integrates your viewing habits data with another tech provider like INVIDI’s ad decisioning engine that pulls in public information about your gender, age, income, if you rent or buy your home, if you have a car lease, and other credit profile info. The ad decisioning engine’s algorithms crunch the data and decide what ad would be most relevant to you.

Gracenote will begin live trials with several large TV manufacturers and hopes to be shipping production units to market in 2013. The technology could shift the balance of power in TV ads by giving TV makers a seat at the table with broadcasters and advertisers.

 

Worldwide, More Money Goes Mobile - Mobile search and display advertising up 220% in US alone

eMarketer 1/4/12

Mobile ad spending around the world more than doubled last year, eMarketer estimates, and though growth will moderate this year, double-digit increases in mobile ad spending will continue in coming years as outlays approach $37 billion by 2016.

In 2012, mobile spending was at $8.41 billion, according to eMarketer’s forecast—up from just over $4 billion the year before and $2.34 billion in 2010. eMarketer’s estimates of worldwide mobile ad spending include dollars going toward display and search advertising only, and exclude spending on messaging-based formats. Spending on tablets is also included.

The fastest growth in 2012 came from North America, especially the US, where mobile search and display ad spending was up 220%. Spending doubled in the Middle East and Africa, from a very small base, while growth in the rest of the world’s regions was below average. In Asia-Pacific, spending was up a comparatively small 40%.

 

How Are Smartphone and PC Internet Users Different?

eMarketer 1/8/12

eMarketer estimates that 1.7 billion people around the world will access the internet via a mobile device in 2013. By 2016, there will be a staggering 2.5 billion mobile internet users worldwide.

The most striking difference GfK found was that PC internet users were considerably less social than their smartphone counterparts. PC internet users spent a sizeable 18% of their internet time on social media activities, but on smartphones, social media truly dominated, accounting for a 31% share of internet time - users spent 13% of their computer internet time watching video, while smartphone users spent just 9%.

eMarketer estimates that mobile accounted for 11.7% of daily media time in 2012, compared to about 25% spent online on nonmobile devices.

 

Digital to Account for One in Five Ad Dollars

eMarketer 1/9/12

Worldwide, digital ad spending passed the $100-billion mark for the first time last year, according to new eMarketer estimates, and will increase by a further 15.1% in 2013 to $118.4 billion.

North America accounts for the greatest share of all digital ad spending, at 39% as of the end of 2012. As emerging markets in Asia-Pacific and Latin America up spending, however, North America and second-place Western Europe will lose share slightly throughout the forecast period. By 2016, 36.7% of spending will come from North America, and 23.7% from Western Europe. By the same year, Asia-Pacific will contribute 29.8% of all digital ad spend in the world.

 

Borrell: Online Ads To Surge 31%

MediaPost by Mark Walsh 1/9/13

A new forecast from Borrell Associates suggests 2013 will be a big year for local online advertising. The firm projects revenue will surge almost 31% this year -- from $18.7 billion to $24.5 billion as more small and medium-sized businesses shift ad spending to digital from traditional media.

Total advertising nationally is expected to grow just 7.5% to $157 billion, while overall local advertising -- offline and online -- will increase 8.2% to $89 billion. Online will account for 34% of spending at the national level, or $57 billion, and 25% of local ad spending, or $24.5 billion.

While digital spending is forecast to rise 17.6% nationally in 2013, Borrell projects that dollars going to newspapers and radio will fall more than 1% each, while other segments will see even larger declines: local TV stations (-11.5%), direct mail (-7.3%), directories (-23.9%), and telemarketing (-5.7%).

Online spending is expected to jump 30.8% at the local level, but newspapers will gain just 0.6%, while the budget earmarked for other print media will shrink 2.5%, and radio will fall 5.9% from last year. Conversely, the only category projected to outstrip the growth of online locally will be in-cinema advertising, at 42%.

 

Pandora Expected To Generate $214M In 2013

MediaPost by Laurie Sullivan 1/10/13 

Music lovers tuned into Pandora, the Internet radio service, in December 2012 for more than 1.4 billion hours, up 54%, compared with the prior year. Active listeners also rose 41% to 67 million for the month. And on Dec. 24, Pandora members collectively listened to the equivalent of more than 5,692 years of music.
There are 67 million U.S. users, about 20 million listeners daily. One million are paid subscribers.  The company is on track to generate $424 million in revenue this year, according to Pandora CRO John Trimble.

 

Obama Signs Video Sharing Bill - Netflix to launch social feature this year

Adweek by Katy Bachman 1/11/13

President Obama signed a bill Thursday that frees Netflix to launch in the U.S. a feature that lets users automatically broadcast on Facebook what movies and TV shows they're watching. Netflix has already launched the feature in other countries.

 

Online Poised To Break 25% Budget Milestone, Mobile Fueling Half Its Growth

MediaPost by Joe Mandese 1/11/13

Online advertising will pass a symbolic milestone this year, becoming one out of every four dollars spent by U.S. advertisers, according to new projections from the equity research team at J.P. Morgan. The growth, writes Internet sector analyst Doug Anmuth, is being fueled by advertisers shifting budgets from analogue media to follow consumer time spent with digital media, especially Internet-connected mobile devices, as well as the continuing momentum of social media platforms like Facebook.

That tally, which represents a 17.4% gain over 2012 online ad spending levels, puts online media at 25% of all U.S. ad budgets.

 

Streaming Video Delivers Blow To Paid Cable

MediaPost by Gavin O'Malley 1/11/13

Driven by the rise of streaming video and better over-the-top technology, cable-led paid-TV services peaked in 2011, and are now on track to decline through 2017.

What will really accelerate the demise of pay TV is when consumers adopt new OTT technology -- from Apple and Intel-- as their primary entertainment services, according to Greeson.

Today, 87% of U.S. broadband households currently subscribe to a pay-TV service, a decline of almost five percentage points since 2010, according to TDG.

The majority of cord-cutters (71%) cite the high cost of paid TV as their primary reason for ditching such services, while 28% cite free online video-on-demand services, such as Hulu. In addition, 25% cite paid VOD services services like Hulu Plus and Netflix as reason enough for cutting their cords.

 

Americans Watched More Online Video Ads in December Than in Any Prior Month

Marketing Charts 1/15/13

Americans watched 11.3 billion video ads in December, setting a new peak, and a sharp 10% rise from November’s 10.3 billion, according to comScore data. The 11.3 billion video ad views in December is twice as many as in January 2012, and represents 59% year-over-year growth. Video ads accounted for 22.6% of all videos viewed in December, and 1.9% of time spent viewing video online.

- The American online population watched 38.7 billion online content videos in December.
- The average online content video was 5.4 minutes in length, while the average online video ad was 0.4 minutes.
- Google Sites overtook BrightRoll Networks to rank as the number one video ad property, with almost 2 billion ad views during the month.
- Google Sites, driven primarily by video viewing at YouTube.com, was once again the top online video content property with 153 million unique viewers. Facebook was next with 58.8 million, followed by VEVO (51.6 million), NDN (49.9 million) and Yahoo! Sites (47.5 million).
- For the first time, Fullscreen moved ahead of Maker Studios for the second spot in the YouTube partner rankings. VEVO retained its top ranking.

 

SoundExchange Ends 2012 With $462 Million In Royalty Distributions

FMQB 1/16/13

SoundExchange has announced a new record for 2012, with total year-end royalty payments reaching approximately $462 million (up 58 percent from the prior year). Fourth quarter 2012 distribution also increased with more than 22,000 payments totaling approximately $134.9 million, a nearly 10 percent increase from its Q3 2012 distribution of $122.5 million. The royalties are paid by Internet radio, satellite radio and cable radio services for their performance of sound recordings, and are distributed by SoundExchange to recording artists and record labels.