Global Advertising Spend to Increase by 4.9% in 2012 to Over $465 Billion

Strong global growth in ad spend in this mention by Strategy Analytics.



Global Advertising Spend to Increase by 4.9% in 2012 to Over $465 Billion


Online advertising to increase by 12.8%; TV by 5.0%; print by 0.5%


BOSTON, MA - February 27, 2012 - Following 3.8 percent growth in 2011, global advertising spending is expected to grow by 4.9 percent in 2012 to $465.5 billion, according to the latest Global Advertising Forecast from Strategy Analytics.


Although total US advertising spending is expected to increase by less than the global rate, at 2.7 percent this year - to $152.1bn – it is a significant improvement on the 0.6 percent growth in 2011. The US also underperforms Europe as a whole, which is expected to grow by 3.7 percent to $136.3bn in 2012. (See Chart 1)


Ed Barton, Strategy Analytics’ Director of Digital Media Strategies, explains, “Major global-impact events led by the Olympics, the US Presidential Elections and the European Football Championships, as well as Japan’s continuing recovery from the earthquake, combine to paint a brighter picture globally in 2012 for advertising spending overall. Furthermore, we expect that total ad spend will surpass half a trillion ($500bn) dollars in 2014.”


Global advertising by media type
Looking at spend by media type reveals that global TV advertising is expected to grow by five percent in 2012 to $188.5bn, equivalent to 40 percent of all global spending. Global print advertising is expected to grow by half a percent, accounting for a 26.4 percent share. Other traditional formats including cinema and radio will grow by approximately four percent.


In contrast, global online advertising is expected to grow 12.8 percent to $83.2bn in 2012, accounting for 18 percent of global ad spending (See Chart 2).


Barton says, “Online advertising will continue along its growth trajectory fuelled by strong growth in emerging markets and increased spending volumes on social networking and online video advertising.”


US/Europe advertising by media type
It is a similar picture in the US with online advertising leading the way. Online is expected to grow by 6.7 percent this year to $27.4bn compared to 3.7 percent for TV and 2.9 percent for other traditional formats. Print is expected to decline by 1.5 percent.


In comparison, online advertising across Europe is expected to grow by 11.7 percent this year compared to 3.4 percent for TV and 2.4 percent for ‘other traditional’ advertising. Print is expected to decline by 0.1 percent.


Chart 1

Barton notes, “The US continues to be a leader in terms of the share of revenue generated by TV advertising - its share in the US this year will be approximately 41 percent compared to 35 percent in Europe and 24 percent in the UK. In contrast, Internet advertising tends to have a smaller share of spending than in other markets. However, the share of advertising dollars allocated to the Internet continues to grow and is projected to overtake print advertising in the US in 2016 – a year ahead of when this is expected to happen for the total global market.” 


Chart 2

Barton concludes, “Europe presents the sternest challenges to forecasting: structural macroeconomic issues based on unsustainable national and household fiscal deficits and the ever-present threat of a major shock in the form of a Eurozone default mean that the region is one defining incident away from all forecasting outlooks effectively being rendered irrelevant in a single stroke.


However, assuming that the Eurozone can build its way out of the current uncertainty, we are likely to see a situation characterized by some territories suffering a long term zero-to-negative growth environment where spending will remain very low (Spain, Greece, Italy, Portugal). Stronger Western European economies (UK, Germany, France) will grow slowly with the occasional boost from one off drivers such as major sporting events. Growth, albeit from lower spending volumes, is likely to come from Eastern and Central Europe (Turkey, Russia) and the ongoing growth trajectory of online formats, in particular online video and social networking.”

Valpak Local Coupons and Deals "All About Coupons Infographic"

Great infographic on the coupon space and usage.

Valpak Local Coupons and Deals "All About Coupons Infographic"

Will a woman consider a man to be cheap if he uses printable coupons? Not really. In fact, some 90% of surveyed women said they'd go on a second date with a thrifty Timothy who pulled out a coupon to pay for dinner on the first date.

Coupons have had a profound impact on the lives of generations of Americans - ever since 1887, when an Atlanta businessman printed the first-ever coupon to get people to try his new product, Coca-Cola.

If you doubt the value of coupons today, consider that coupon use was set to climb 150% from 2009 to 2014, while the redemption value of coupons will jump an ever higher percentage.

Read more about the fascinating world of coupons in our coupon infographic below.

Americans streamed 43.5 billion videos in December 2011

Video marketing continues to climb in terms of consumer engagement.

comScore Says 105 million Americans Now Watch Videos Online Every Day

February 09, 2012 -- By Michael

Nearly one in three Americans watches online videos daily. That’s according to the latest comScore report, which shows that Americans streamed 43.5 billion videos in December 2011. That figure represents a 44% increase year-over-year.

comScore’s 2012 US Digital Future In Focus report indicates that 105.1 million Americans watch videos online every day, which is substantially more than the 73.7 million online video watchers documented in 2010.

YouTube, not surprisingly, remains the driving force behind the popularity of online video consumption.

Other notable finds from the comScore study include:

• The average length of videos watched has increased from 5 minutes to 5.8 minutes.
• The average viewer consumes 239 videos on a monthly basis.
• A staggering 4.8 trillion display ad impressions were delivered across the U.S. web in 2011 as brand advertisers continued to shift dollars to the digital medium.

“2012 promises to be an exciting year for the digital media industry as the explosion of available content and proliferation of web-enabled devices drive the evolution of the digital consumer, creating new opportunities and challenges for the entire digital ecosystem,” said Linda Abraham, comScore CMO and EVP of Global Product Development. “In order to be successful in this new paradigm, digital marketers must understand the key trends shaping the current marketplace and what that means for the future of their businesses.”

Mobile web vs app usgae

Interesting eMarketer article on mobile web vs app usage by consumers.  The important item is that usage around shopping is that mobile web wins out.

App or Browser? Depends What Consumers Are Doing

FEBRUARY 9, 2012 

Apps preferred for navigating and information gathering; mobile web for entertainment, searches

Mobile is more and more a go-to channel to reach consumers. With more than 75% of the US population now subscribing to a mobile phone service, according to eMarketer, and nearly 114 million consumers expected to access the internet via mobile this year, mobile is a no-brainer for marketers.

But since many marketers are just launching mobile programs, uncertainties abound, including whether consumers prefer mobile apps or the mobile web. While the debate rages over that question, a Jumptap study of ad requests served over the past year shows a slight lead for the mobile web. But ads served to both the web and mobile apps are growing at a similar rate.

In a press release, Jumptap points out that for marketers trying to decide whether to build an app or mobile site, the answer clearly depends on the audiences they’re looking to target: “One thing to remember is you don’t have to have either to advertise—even if an advertiser doesn’t have an app or a mobile website, they can still have a mobile landing page.”

A study by Yahoo! and Ipsos presents a different answer to the question of whether consumers prefer apps or the web. Their findings show that it depends what activity consumers are performing.

People overwhelmingly use a mobile browser for shopping, searching and accessing entertainment via their smartphones. But when they are navigating or acquiring information, apps are preferred.

US Mobile Ad Spend $2.61 Billion in 2012

Great summary below by eMarketer on the growth in mobile ad spend. Smartphone penetration, tablet growth, and geo-targeting driving spend.

US Mobile Ad Spending Soars Past Expectations

JANUARY 26, 2012 

Advertisers will spend $2.61 billion on mobile this year

  

The US mobile advertising market is growing far faster than expected, driven by the rapid ascension of Google’s mobile search advertising business, advertisers’ growing attraction to display inventory on tablet and smartphone devices, and the growing roster of mobile ad networks such as Google’s AdMob, Apple’s iAd and Millennial Media.

eMarketer estimates mobile advertising spending in the US reached $1.45 billion in 2011, up 89% from $769.6 million in 2010. This year, US mobile ad spending will grow 80% to $2.61 billion.

eMarketer previously forecast US mobile ad spending would grow 47% to $1.8 billion in 2012, up from $1.2 billion last year. The significantly higher revision is the result of several factors, most notably a stream of new market data made available in the past few months from major advertising publishers and research firms.

“Right now there are many researchers out there basically looking at nearly the same empirical data about the mobile marketplace and drawing completely disparate conclusions,” said Noah Elkin, eMarketer principal analyst.

“In order to form the most complete picture possible about the mobile ad market, we think it’s essential to evaluate multiple information sources, rather than a single set of survey data—especially as the market remains immature,” added Elkin.

eMarketer estimates US mobile search advertising more than doubled in 2011, when spending grew to $652.5 million, up from just $253.2 million in 2010. This year, advertisers will spend $1.28 billion on mobile search ads in the US, eMarketer estimates. eMarketer previously forecast mobile search advertising would reach $349.4 million in 2011 and $594.8 million in 2012. The revisions have helped put search in first place among mobile formats, with 49% of total mobile spending this year.

eMarketer estimates US mobile display ad spending, which includes spending on banner and rich media ads, will grow 93.5% to $861.7 million in 2012, after reaching $445.4 million in 2011. Spending on mobile video advertising will grow an estimated 122% to $151.5 million this year, up from $68.2 million in 2011.

eMarketer forms its forecast for mobile advertising spending through a meta-analysis of estimates from research firms that track mobile ad spending and impressions, reported data from major mobile advertising publishers, and other sources. eMarketer also conducts interviews with executives at agencies, brands and mobile advertising publishers who provide perspective on the development of the mobile advertising business as a whole, as well as the revenues for individual companies.

Inforgraphic: Optimize Your Tweeting for Click-thrus

Useful infographic via ReadWriteWeb and methods to optimize your tweets for retweeting.

[Infographic] Increase Click-Through Rates For Your Tweets

By Dave Copeland / January 25, 2012 

HubSpot's resident social media scientist Dan Zarella released a new report on how to get the highest number of click-throughs for your tweets.

Some of the information (presented below in a handy infographic) is stuff we already knew: Tweets between 120 and 130 characters tend to get retweeted more often than longer and shorter tweets and tweeting links at a slow rate gets more clicks, for example. But other findings - including click-through rates for tweets containing the word "daily is out" by paper.li users - were surprising.

Facebook IPO: Morgan Stanley's Deal Trophy

Great Wall Street Journal article on Morgan Stanley's big coup: to lead the Facebook IPO.

Hunting for Big IPO Game

Already-Dominant Morgan Stanley Tech Team Sets Sights on Facebook Deal

By ANUPREETA DAS

Last year, Morgan Stanley's technology bankers got wind that some directors of Pandora Media Inc. were wary of hiring the bank to lead the online radio company's public offering.

Michael Grimes, co-head of global tech banking at Morgan Stanley, and his team wore concert T-shirts of their favorite bands from their Pandora profiles, including the Rolling Stones and Black Sabbath, under blue blazers when making their pitch. A person present at the meeting said Mr. Grimes assured Pandora that his team only makes suggestions to clients and doesn't dictate what they should do. The bank got tapped for the deal.

Bloomberg News

Michael Grimes of Morgan Stanley

Now, with the chance to lead the much-anticipated IPO of Facebook Inc., Morgan Stanley's tech team is going after a much bigger prize. The offering is expected to raise as much as $10 billion in what could count as one of the largest U.S. public debuts ever.

For the past year, Morgan Stanley and rival Goldman Sachs Group Inc. have been viewed as leading contenders for the coveted "lead left" spot in Facebook's IPO prospectus, which goes to the bank with the most responsibility for the offering. Goldman was presumed to have an upper hand after arranging a private offering of Facebook shares last year, though its odds were seen as declining amid a flub in that process that led the bank to limit the deal to non-U.S. investors. After that, executives at the social-networking company became less enamored with the bank, according to people familiar with the matter.

Morgan Stanley and Goldman Sachs declined to comment.

View Interactive

Often referred to as a boutique inside a big bank, Morgan Stanley's tech team helped take public roughly half of the 23 Internet companies that listed in the U.S. last year, according to Dealogic. It ranked tops for global and U.S. Internet and technology initial public offerings last year.

The $115 million it made in fees for U.S.-listed Internet IPOs last year was nearly twice the amount earned by its nearest competitor in terms of fee revenue, Deutsche Bank AG.

Facebook is expected to file initial documents for its offering soon. Bankers—who help companies decide how to price shares, tell the company's story and allocate shares to investors—have been waiting for word that they will get a role. Together, these financial advisers are expected to reap fees of as much as $220 million from the Facebook deal, though the company could negotiate lower fees because the deal is such a trophy.

More

• Morgan Stanley Names Fewer Managing Directors

The tap from the social-networking company to lead the deal could prove a boost for Morgan Stanley, which, like many of its rivals, has been struggling amid an upheaval in the trading operations and new regulations that have crimped profits.

The tech team's importance to Morgan Stanley came through during the bank's recent cost-saving moves. Though the firm laid off 1,600 employees in recent weeks and slashed bonuses for many others, its tech bankers are largely going to be spared, according to a person familiar with the matter.

Beyond fees, a thriving IPO business can help a bank attract brokerage clients and win business advising on mergers.

Enlarge Image

A lead role in a deal can put a bank in a prime position to get wealth-management business from newly enriched company employees.

For Morgan Stanley, a Facebook coup also could prove a boon for retail brokers and clients of Morgan Stanley Smith Barney, the brokerage joint venture Morgan Stanley owns with Citigroup Inc.

Clients say one plus for Morgan Stanley's team, based in Menlo Park, Calif., is that it has been largely unchanged since the mid-1990s, after veteran deal-maker Frank Quattrone left for a rival shop in 1996, taking with him a team of bankers. The 45-year-old Mr. Grimes, who had joined a year earlier, helped rebuild Morgan Stanley's tech team through the dotcom boom and bust.

In 2005, Mr. Grimes was appointed a co-head of global tech banking, along with Paul Chamberlain, 48, another veteran of the bank.

"They've been in the same jobs, not leaving for other firms, not moving to New York, they've decades of experience and seen every tech cycle… that carries a lot of weight with clients," said Egon Durban, a managing partner at private equity firm Silver Lake Partners.

While Wall Street banks often group coverage of telecommunications, media and technology together, Morgan Stanley breaks out tech separately, which clients say gives the Morgan Stanley team focus.

At Qlik Technologies Inc., Lars Bjork, chief executive of the business-software company, said two Morgan Stanley bankers came calling on Qlik about five years before the company's 2010 IPO, long before their rivals. "There was no shortage of bankers," so when it came to choosing the lead underwriter, it boiled down to "who is spending enough time with you and knows you so well that they can tell your story as well as you can," Mr. Bjork said.

Morgan Stanley's track record isn't perfect. LinkedIn Corp. shares more than doubled on their first trading day, raising questions whether the bank had underpriced the company's stock. The opposite question has hovered around online game developerZynga Inc., whose stock price has largely remained below its $10-a-share initial offering price.

Mr. Grimes, a fast-talking and energetic California native with a degree in electrical engineering and computer sciences, is known to clients and colleagues as being passionate about technology—someone who Is never too busy to drive over to meet a young client for coffee, according to a former colleague. "He has a love of the game, and it comes through," the person said.

Clients say they appreciate the personalized attention they get. Early last year, Mr. Grimes flew around the country with Michael Smerklo, chief executive of software company ServiceSource International LLC, to meet potential investors before the company's IPO, said Mr. Smerklo, himself a Morgan Stanley banker a dozen years ago. When the stock popped 22% on the first trading day, "we were thrilled," he added.

—Aaron Lucchetti and Randall Smith contributed to this article

Write to Anupreeta Das at anupreeta.das@wsj.com

4 Billion Per Day: YouTube Views

Wow. Video streaming growth undeniable in this The Next Web article below. Opportunities to monetize will only grow with time.  


YouTube hits 4 billion daily video views, a 25% increase in the past eight months 
23RD JANUARY 2012 by PAUL SAWERS


YouTube is now streaming more than four billion online videos each day, representing a 25% increase in the past eight months, reports Reuters.

This figure is across all platforms, including PC and smartphones, and the company has said that around 60 hours of video is uploaded to YouTube every minute, compared to 48 hours a minute last May.

Whilst that’s an impressive figure, most of the 4 billion videos streamed each day don’t make Google a lot of money, with only three billion YouTube videos monetized in any way each week. YouTube, however, does offer a valuable opportunity for Google to drive revenue outside of Search, and it is looking to ramp up its efforts to broadcast more professional-grade content.

The video-streaming site is now beginning to showcase specialized “channels” based on different kinds of content, and in late 2011 YouTube announced one hundred original video-programming deals with media partners including Madonna, Jay-Z, Deepak Chopra, Tony Hawk and Rainn Wilson. Women’s interest channel KinCommunity was one of the first to be given a makeover:

Back in May 2011, we reported that YouTube was seeing two days worth of video uploaded every minute to the service, resulting in 3 billion views per day. The figures coincided with YouTube’s sixth birthday, and represented a 37% increase on the previous six months and 100% on the previous year.

Digital Coupon Innovation

Digital coupon innovation is progressing at light speed.  I help lead innovation efforts at Valpak (that familiar blue coupon envelope that arrives in your mailbox each week). Some of the the more interesting innovations Valpak has already brought to market include augmented reality campaigns with Martha Stewart and leveraging the Junaio app to feature Valpak local savings offers via mobile devices.  


Additionally, Valpak has launched several QR code sweepstakes promotional campaigns and now integrates QR codes as a mobile engagement mechanism for advertisers that utilizes print media to drive to mobile. 


Future innovations in the space by a host of large and niche players in the space include: gesture-based sharing, nearfield communication (NFC) tie-ins, leveraging gamification modeling, increased LBM (location-based marketing) reliance, social commerce, deep social graph integration, markerless (natural object) augmented reality,  interactive video and media platforms, and touch-screen technology to distribute savings offers and engage consumers looking for coupons and deals, just to name a few. 


Below is a Mashable article that speaks to some shorter term opportunities for the digital coupon space.

What’s Next for Digital Coupons?

 by Jeff Hudson

Couponing had seen unprecedented growth in the past decade due to a combination of factors — one of which was the economic recession in the U.S., combined with an increased consumer interest in mobile technology and devices.

Because of this, marketers began to heavily fund digital platforms. The coupon industry, specifically, saw record growth within the digital realm, and by 2010, SavingStar estimated that “49 million people used printable or digital coupons.”

The benefits digital interactions offer coupon companies are vast. For starters, online couponing allows for great promotion and wider distribution for brands. It also provides companies with better reach and the ability to track consumer preferences and patterns. Data from Leo J. Shapiro and Associates determined that the digital coupon consumer base was primarily comprised of young married couples with disposable income. Grouponhas targeted this demographic, lending digital couponing a social reputation.

Daily deal couponing continues to be a popular tool among consumers and marketers, and many major companies have implemented their own version of the trend.

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What Business Owners Need to Know About Daily Deal Couponing

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Although intriguing for consumers, daily deal platforms like Groupon have not always been beneficial for business owners, who often see a spike in business but little customer retention.

A Rice University study found that 66% of the 150 businesses surveyed reported that Groupon promotions were profitable. However, more than 40% of the organizations said that they wouldn’t run a Groupon offer again.

Daily deal platforms have revealed the social nature of contemporary couponing. For example, Cornell University reported that many Groupon users see themselves as “marketing mavens,” and “on the front edge of market trends and price information.”

Additionally, users claimed in the survey that they would not have tried a restaurant or store without a coupon offer. Contemporary couponing has highly influenced social branding, greatly increasing the popularity of daily deals.

1. Social Leads to Social Sharing

The social, daily deal strategies made popular by sites such as Groupon and Living Social have certainly spawned many copycat initiatives within the digital couponing realm.

One such example is SocialTwist, a platform that states it “allows users to share in order to receive a better bargain.” Basically, consumers can turn a $1 coupon into a $4 coupon simply by sharing it with four other people.

This method will likely continue to increase in popularity in 2012 — we already saw evidence late November 2011, when Foursquare announced it would incorporate a new “social sharing” button on its site.

2. Getting Mobile-Ready

Given these newer strategies, companies are mobilizing their virtual and physical platforms to better reach and retain these social, mobile customers. Most companies are aware that their mobile presences have to be dynamic and user friendly. With roughly 91% of the population using mobile devices and 26.3% accessing the Internet, it is important to have a mobile site for on-the-go reading and utilization.

Additionally Google reported that 95% of smartphone users have searched for local information, proving that location-based, deal searching is vital to digital couponing.

The same study found 38% would use a mobile device to find a store location, 34% to compare prices, 28% to research deals and coupons, and 27% to find a product review.

3. Resolving Mobile Couponing’s Redemption Pitfalls

Mobile couponing, an obvious extension and result of digital distribution, has been popular despite its “mechanical” issues. With the rise of digital coupons, there was also a surge in consumers who used their mobile devices to reference coupons visually on their smartphones. Unprepared for this development, the redemption process, such as the scanning of digital coupons on mobile devices, has proven difficult until recently.

“Mobile coupon redemption has always struggled with ensuring a seamless experience at the point of sale,”says reporter Steve Smith. So, business giants like Walgreens are “retraining salespeople to handle the process and equipping stores with hardware that can recognize 2D codes on LCD displays.” This nationwide initiative was just launched and underwent testing during the 2011 holiday season.

Walgreens released an app for iOS, BlackBerry and Android, which includes a new coupons section that issues up two to three new exclusive weekly deals for customers using the mobile apps.

Rich Lesperance, head of digital marketing and merging media for Walgreens, told Media Post that “the program is the largest deployment of in-store mobile coupon scanning of which he is aware.”

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Looking Ahead to the SoLoMo Strategy

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In short, the “social-local-mobile” trend is the next cutting edge move for digital businesses, and a necessary consideration for coupon brands. SoLoMo gets specific when it comes to targeting your ideal market and allows your ideal consumer to find you. The combination is a win for both parties, as well as the logical next step for consumer activity based on current digital engagement.

Image courtesy of iStockphoto, trekandshoot, Flickr, Joe Pemberton