Showing posts with label online advertising. Show all posts
Showing posts with label online advertising. Show all posts

Thursday, February 14, 2008

Yahoo ramps video with Maven

THE air around Yahoo might be thick with anticipation over what Microsoft’s next move might be in its hostile acquisition bid for the company, but that hasn’t stopped it getting on with business.

Yahoo has announced a major expansion in the video content sector, acquiring online video platform provider Maven Networks for US$160 million (A$177 million).

The company said the acquisition gives Yahoo the opportunity to expand both its consumer video services and its video advertising offerings.

“Video is projected to be the fastest growing segment of the online ad market, and Maven will significantly help advance Yahoo!'s strategy, expanding the video opportunity for publishers and increasing the efficiency and effectiveness for advertisers,” said Yahoo Global Partner Solutions executive vice-president Hilary Schneider.

The acquisition better positions Yahoo to take advantage of the growing market for online news and entertainment, and to offer advertising in video bundles. Research group eMarketer estimates the advertising spend on internet video will triple over the next three years to US$4.3 billion.

Yahoo says it already has the largest library of professionally produced legally licensed video content and has video advertising relationships with over 75 per cent of the top TV advertisers. It also has advertising relationships with a growing number of premium publishers including eBay, Comcast, Forbes.com and others.

The Maven platform is currently used to manage, distribute and monetise premium online video content for over 30 major media companies, including Fox News, Sony BMG and CBS Sports.

For more e-Marketing news, click here.



For more Digital Content news, click here.

Yahoo ramps video with Maven

THE air around Yahoo might be thick with anticipation over what Microsoft’s next move might be in its hostile acquisition bid for the company, but that hasn’t stopped it getting on with business.

Yahoo has announced a major expansion in the video content sector, acquiring online video platform provider Maven Networks for US$160 million (A$177 million).

The company said the acquisition gives Yahoo the opportunity to expand both its consumer video services and its video advertising offerings.

“Video is projected to be the fastest growing segment of the online ad market, and Maven will significantly help advance Yahoo!'s strategy, expanding the video opportunity for publishers and increasing the efficiency and effectiveness for advertisers,” said Yahoo Global Partner Solutions executive vice-president Hilary Schneider.

The acquisition better positions Yahoo to take advantage of the growing market for online news and entertainment, and to offer advertising in video bundles. Research group eMarketer estimates the advertising spend on internet video will triple over the next three years to US$4.3 billion.

Yahoo says it already has the largest library of professionally produced legally licensed video content and has video advertising relationships with over 75 per cent of the top TV advertisers. It also has advertising relationships with a growing number of premium publishers including eBay, Comcast, Forbes.com and others.

The Maven platform is currently used to manage, distribute and monetise premium online video content for over 30 major media companies, including Fox News, Sony BMG and CBS Sports.

For more e-Marketing news, click here.



For more Digital Content news, click here.

Yahoo spurns Microsoft offer as too little

GLOBAL Internet pioneer Yahoo has rejected Microsoft’s US$42 billion unsolicited takeover offer, saying the bid was too low and not in the best interests of shareholders.

“The Yahoo board of directors has carefully reviewed Microsoft's unsolicited proposal with Yahoo's management team and financial and legal advisors and has unanimously concluded that the proposal is not in the best interests of Yahoo and our stockholders,” the company said in a statement.

“After careful evaluation, the Board believes that Microsoft's proposal substantially undervalues Yahoo, including our global brand, large worldwide audience, significant recent investments in advertising platforms and future growth prospects,” it said.

The rejection had been largely expected by both the finance and technology community. But in dismissing Microsoft’s initial overtures, the carefully-worded Yahoo statement was in no way antagonistic toward a future, larger offer from Microsoft.

It did not cite anti-trust concerns, not allude to any misgivings about Microsoft’s intentions for the company and its technology.

“The Board of Directors is continually evaluating all of its strategic options in the context of the rapidly evolving industry environment and we remain committed to pursuing initiatives that maximise value for all stockholders,” the Yahoo statement said.

Microsoft issued a statement describing the rejection as “unfortunate,” and left the door open to further pursuit of Yahoo, saying “moving forward to consummate the transaction” was best for all concerned.

“A Microsoft-Yahoo combination will create a more effective company that would provide greater value and service to our customers,” Microsoft said.

“Furthermore, the combination will create a more competitive marketplace by establishing a compelling number two competitor for Internet search and online advertising.”

“The Yahoo! response does not change our belief in the strategic and financial merits of our proposal. As we have said previously, Microsoft reserves the right to pursue all necessary steps to ensure that Yahoo!’s shareholders are provided with the opportunity to realize the value inherent in our proposal.”

Reports from the US say one option that Yahoo is exploring is a possible merger with struggling internet firm AOL, a part of the Time Warner media behemoth.

For more e-Marketing news, click here.



For more Digital Content news, click here.

Monday, December 17, 2007

FTC chair attacked over DoubleClick

TWO high-profile privacy advocacy groups have accused US chair of the US Federal Trade Commission of having a conflict on interest in reviewing Google’s planned acquisition of online advertising firm DoubleClick.

The Electronic Privacy Information Centre (EPIC) and the Centre for Digital Democracy (CDD) called on FTC chairwoman Deborah Platt Majoras to recuse herself from the Google/DoubleClick review because of her husband’s involvement in the issue.

In a submission to the commission, the groups complain that DoubleClick has retained a Washington law firm in which Ms Platt Majoras’ husband is a partner to represent it before the FTC.

The submission further complains that Deborah Platt Majoras was also an equity partner in the law firm prior to become FTC chairwoman.

The law firm, Jones Day, is advising DoubleClick on its US$3.1 billion proposed acquision by Google. The companies would combine DoubleClick ad serving technology with Google’s search and cookie expertise.

“While at Jones Day, (Ms Platt Majoras) represented clients on civil and criminal antitrust litigation matters, including mergers and acquisitions, monopolization, price-fixing, distribution issues, and governmental investigations,” a biography on the FTC web site says.

Reports in the US say Ms Platt Majoras is consulting with the FTC’s ethics officer to see whether she should recuse herself from the review.

“As the Chairman of the Commission has previously recused herself in similar matters for similar reasons where there was a lesser conflict of interest, it is clear that she must recuse herself here,” EPIC and CDD said it the submission to the FTC.

For more e-Marketing news, click here.

Tuesday, December 11, 2007

Microsoft bags CNBC advertising

AS competition in the online advertising space ratchets up, Microsoft has announced it will start exclusively serving ads to the popular financial news site CNBC.

The competition between Google, Microsoft and Yahoo is turning into a land-grab for customers.

Google earlier this year announced its intention to acquire display advertising leader DoubleClick – which is still awaiting Federal approval – while Microsoft spent US$6 billion acquiring display online ad specialist aQuantive.

Microsoft will serve up contextually relevant advertising to the more than 2.6 million unique visitors to CNBC.com each month. Microsoft will be the exclusive third-party provider for both display and contextual advertising.

The companies said advanced technology would connect advertisers with CNBC.com users through a combination of graphical advertisments and automated text-based ads targeted to content.

Over time, the technology would also enable the anonymous aggregation of user behavior, the companies said in a statement.

“The addition of CNBC to our syndicated advertising partner sites will help the advertisers that work with Microsoft reach an even broader set of users in this highly strategic audience segment,” Microsoft Online Services Group senior vice-president Steve Berkowitz said.

Microsoft will start serving CNBC.com with text advertising later this month, and online display advertising in March next year.

For more e-Marketing news, click here.

Monday, December 3, 2007

Adobe, Yahoo launch PDF advertising

ADOBE and Yahoo have launched a service that lets commercial publishers run dynamically generated advertising within PDF documents.

The companies say the service opens up a new frontier for the online advertising market, putting contextual advertising that matches the readers interests in PDFs.

Called ‘Ads for Adobe powered by Yahoo’, the service has been launched initially as a beta program.

“By partnering with Yahoo! on this innovative advertising service we are creating opportunities for publishers to build new businesses around unique content that previously was just given away or not available to a mass online audience,” said Adobe senior vice-president for Corporate Development, Rob Tarkoff.

“As advertisers look to touch new audiences, readers can look forward to some exciting Adobe PDF content coming their way.”

Yahoo! Publisher Network senior vice-president Todd Teresi said the partnership created a previously untapped opportunity for advertisers to connect with qualified audiences, while opening new revenue streams for publishers.

Particpants in the beta program include IDG InfoWorld, Wired, Pearson’s Education, Meredith Corporation and Reed Elsevier.

For more Digital Content news, click here.

Friday, November 16, 2007

Europe extends DoubleClick scrutiny

REGULATORS in Europe have intensified its scrutiny of the proposed Google-DoubleClick merger, saying its initial investigation had revealed competition concerns.

The European Commission issued a statement this week saying it had opened an in-depth investigation into the proposed acquisition under EU merger regulation.

“The Commission’s initial market investigation indicated that the proposed merger would raise competition concerns in the markets for intermediation and ad serving in online advertising,” the statement said.

It now has 90 working days to make a final decision on whether the transaction would impede effective competition.

The Australian Competition and Consumer Commission (ACCC) is also looking at the possible impact of the proposed acquisition.

The further Commission investigation will look in particular at whether DoubleClick would have grown into an effective competitor of Google in the market for online ad intermediation if the acquisition did not take place.

It will also investigate whether the merger, which combines the leading providers online advertising space and intermediation services, with ad serving technology, could lead to anti-competitive restrictions and harm consumers.

For more e-Marketing news, click here.

Facebook sells users to corporates

WILDLY popular social network Facebook is to test the loyalty of its 50-million-strong user base, unveiling a new advertising system that targets its users based on their personal preferences.

The company is also announced plans to allow corporations to launch dedicated brand pages on the service, saying it had already signed deals with dozens of companies, including Coca-Cola, Blockbuster and eBay.

Facebook Ads would allow marketers to become “part of the conversation,” Facebook founder and chief executive Mark Zuckerberg told a conference in New York.

The highlight of the system is that “users can now learn about new businesses, brands and products through the trusted referrals of their friends,” the company said.

The Facebook ad system was expected, but its invasiveness has surprised some users. Groups have already appeared on the service protesting the use of personal information by the system.

Facebook’s corporate blog said the Facebook Ads system improved the service for its users. It promised its pages would remain clean-looking, and that users would not see any more advertisments than they see now.

The company also said the service would allow its users to keep in closer contact with the brands they feel “passionate” about.

Mr Zuckerberg said the social network’s role in advertising was becoming increasingly powerful.

“Social actions are powerful because they act as trusted referrals and reinforce the fact that people influence people,” said Mr Zuckerberg said.

“It’s no longer just about messages that are broadcasted out by companies, but increasingly about information that is shared between friends. So we set out to use these social actions to build a new kind of ad system,” he said.

For more e-Marketing news, click here.

AOL in advertising acquisition play

MASS market internet services pioneer AOL is to acquire New York-based online advertising specialist Quigo, the latest online giant to make an equity play in the ad market.

AOL competitors Google, Yahoo! and Microsoft has all spent billions this year buying online advertising companies, most notably Google’s acquisition of DoubleClick – which is still to be approved by federal antitrust regulators – and Microsoft’s acquisition of aQuantive.

The deal gives AOL contextual advertising capabilities, allowing it to match advertising to the content of Web pages. The companies did not disclose the financial terms of the deal.

The company has more than 500 premium publisher relationships, including a recently finalized deal with Time, and has a broad network of roughly 3,000 advertisers.

Quigo's AdSonar technology lets advertisers purchase ads on websites based on specific pages, sections, topics or keywords. Quigo offers a variety of pricing models including text, display and video ads bought on a cost-per-click, cost per impression, or cost per time basis.

“We will be able to offer advertisers and publishers the most advanced set of tools, including contextual and behavioural targeting, superior analytics, and access to the largest display network in the marketplace.” said AOL chairman and chief executive Randy Falco.

“And by offering advertisers the ability to target ads based on the content of Web pages using Quigo's AdSonar technology, we will be able to maximise the value of publishers' ad inventory,” he said.

For more e-Marketing news, click here.

Murdoch dumps WSJ fees

MEDIA magnate Rupert Murdoch says News Corporation will drop the subscription model used by the online site of its latest masthead The Wall Street Journal in favour of free access.

Mr Murdoch said the company hopes to generate at least 10 to fifteen times as much traffic to the WSJ site by making it free. The company will make more money by attracting more readers, he said.

News Corporation is expected to complete its acquisition of WSJ owners Dow Jones – announced last month – by the end of the year.

Speaking at the annual News shareholder in meeting in Adelaide, Mr Murdoch said: “We are studying it and we expect to make that free, and instead of having 1 million (subscribers), having at least 10 million to 15 million in every corner of the earth.”

The WSJ.com site is one of the few internet sites to have successfully introduced a subscription model – charging its million readers an annual fee of US$50 (A$55).

After spending much the nineties as an online sceptic before ultimately becoming a big investor, Mr Murdoch told the meeting the internet was now generating US$1 billion a year for the company

While not expressing surprise at the size of the internet revenue, he did remark it was somewhat unsual given it came from a sector that “didn’t exist” as recently as a few years ago.

“I'd like to be able to say it was great prescience on my part but there's a certain amount of luck to it,” he said.

For more e-Marketing news, click here.

Online ad spend to double by 2011

SPENDING on online advertising in the US will grow to more than US$21 billion ($22.6 billion) this year, and double to US$42 billion in 2011, according to research firm eMarketer.

The company said generally gloomy industry forecasts for traditional advertising – a result of concerns about the US economy – were unlikely to hurt online advertising as badly as the rest of the media.

“Even as the credit crunch pulls ad money off the total media table, the internet looks to be more resistant to economic turmoil,” said eMarketer senior analyst David Hallerman.

“To put the obvious into figures, online advertising contributes more and more to the total ad spending universe every year.”

“That share will be 7.4 per cent this year, approach one in ten dollars next year, and will likely reach at least 13 per cent by the end of 2011,” Mr Hallerman said.

The average ad spend per internet user is also growing, eMarketer reports.

In fact, 2007 marks the first year that marketers will spend more than US$100 to reach each person online. And, by 2011, advertisers will be spending nearly US$200 per user.

For more e-Marketing news, click here.

Monday, November 5, 2007

Privacy groups target net cookies

THE battle lines have been drawn in the brewing fight between privacy advocates and online advertisers with a proposed “Do Not Track” register likely to be a flashpoint.

A group of nine privacy and advocacy groups in the US have applied to the Federal Trade Commission for the creation of register that would let users ‘opt-out’ of the internet advertising practice of tracking, storing and using details of consumers’ online habits.

The No Not Track register would operate in the same as way as the Do Not Call register, which stops telemarketing companies from calling their home phones numbers.

It is the Federal Trade Commission that operates the Do Not Call register in the US. In Australia, a Do Not Call register was introduced earlier this year, operated by the Australian Communications and Media Authority (ACMA).

Privacy has become a frontline issue in online advertising and marketing, with billions of dollars at stake. Online search giants Google, Yahoo and Microsoft have all spent billions this year acquiring online advertising firms – with the aim of using demographic and preference data acquired through the search process and applying it to advertising.

The US FTC on Wednesday held a ‘Town Hall’ meeting to hear consumer concerns about online advertising and marketing. Groups engaged in lobbying for the Do Not Track register include the Electronic Frontiers Foundation, the World Privacy Forum, the Center for Democracy and Technology, and the Consumer Federation of America.

From the internet to mobile devices and beyond, consumers leave behind a vast amount of behavioural information that is tracked and targeted by advertisers and marketers without their knowledge. This “behavioural tracking” – the practice of collecting and compiling a record of individual consumers' activities, interests, preferences, and communications over time – places consumers' privacy at risk, and is not covered by law.

“If you look back at the Do Not Call list, it was at one time managed by industry. But it didn’t gain widespread acceptance until the FTC took it over,” said World Privacy Forum executive director Pam Dixon.

“The industry has had seven years to prove they can manage online opt-outs. It is time to move toward something structured like the Do Not Call list to address the problems we are seeing, and have now seen for seven years.”

The Do Not Track list springs from consumer protection principles on the internet already enforced by the Commission, and builds on its experience as the lead law enforcement agency in the fight against and prosecution of spyware abuse.

The Do Not Track register would require advertising entities that place persistent tracking technologies on consumers’ computers to register with the FTC all domain names of the servers involved in such activities.

Developers of browser applications would be encouraged to create plug-ins allowing users to download the Do Not Track list onto their computers. Having the list accessible via a browser application would allow users to prevent any site from tracking behavioural data.

“Online opt-outs should be as well-known and as easy as the Do Not Call list,” said Consumer Federation of America research director, Mark Cooper.

For more e-Marketing news, click here.

Sunday, November 4, 2007

Google jumpstarts TV business with Nielsen

GOOGLE has taken a next step in furthering its ambitions for TV advertising distribution, entering a strategic relationship with The Nielsen Company, a ratings specialist in the US.

The companies said as a first step, the relationship involves using Nielsen’s experience in television audience measurement to bring demographic data to the Google TV Ads advertising platform.

By combining the Nielsen data with aggregated set-top box data, Google says it can give advertisers better information to help them create more targeted ads.

The companies did not disclose the financial terms of the relationship.

Google TV Ads is an online platform for buying, selling, measuring and delivering television ads. It has been operational since May.

Google has been pushing a pay per click model. It says the key benefit of the Google TV Ads platform is the ability to report second-by-second set-top box data so advertisers can evaluate the reach of an ad and only pay for actual set-top box impressions.

Data derived from Nielsen’s representative television ratings panels will provide Google TV Ads advertisers with the demographic composition of the audience. The companies say this is the first time advertisers would have access to this level of detailed measurement from a single source in such a large scale.

“As we continue to expand our TV advertising program, it is important that we provide advertisers and agencies with data that will help them reach their target demographic with the right ad,” said Google chief executive officer Eric Schmidt.

“Working closely with Nielsen, the industry leader, improves our measurement capabilities by adding a demographic layer on top of existing set-top box data. We’re pleased that Nielsen is working with us in this endeavour,” Mr Schmidt said.

For more Web Applications news, click here.

Thursday, October 4, 2007

Microsoft acquires Jellyfish shopping site

MICROSOFT has quietly acquired a comparative shopping search engine company Jellyfish.com, a start-up that seeks to give its customers a cut of retailers’ online advertising each time they make a purchase.

Microsoft announced the acquisition in a three sentence statement on its Live Search blog, and gave few details of its intentions for the Jellyfish technology.

“Jellyfish has done some really innovative work in comparative shopping engines,” the Microsoft blog said.

“We think the technology has some interesting potential applications as we continue to invest heavily in shopping and commerce as a key component of Live Search.”

The site works by advertisers nominating the level of commission it will pay Jellyfish for sales made through its site. Jellyfish then commits to rebate at least half of that commission to the customer as a rebate.

It is not clear what Microsoft will do with the Jellyfish technology. The company is known to have been working on its own comparative search for its own ecommerce offerings.

For more e-Commerce & e-Finance news, click here.

Friday, September 21, 2007

Microsoft acquires online ad platform

MICROSOFT has continued its push into the electronic marketing space with the acquisition of AdECN, a real-time online advertising auction site.

AdECN’s technology serves as a hub where advertising networks can come together in a neutral, real-time auction marketplace for buying and selling display advertising.

The technology delivers targeted display advertising to specific demographics in real time.

As a user clicks to an AdECN member’s site, the technology will instantly trawl the user’s demographic details and conduct an auction to see who gets to send the user a display ad – all in milliseconds.

The deal is a key component of Microsoft’s strategy to develop a comprehensive search and display advertising platform helping advertisers and publishers to maximise return on investment (ROI) on their digital advertising investments.

Financial terms of the deal were not disclosed.

“Both Microsoft and AdECN have a deep commitment to creating the technologies and platforms that enable advertisers and publishers to maximise their ROI in the digital marketplace,” said Microsoft platforms and services president Kevin Johnson.

“We believe the addition of AdECN to the Microsoft portfolio is a perfect fit and will create more efficiency for the industry by forming a more robust marketplace between advertisers and publishers, aggregating more supply and demand. This is good for the whole advertising industry,” Mr Johnson said.

For more e-Marketing news, click here.

Monday, July 16, 2007

Feds approve Redmond online ads acquisition

MICROSOFT’s US$6 billion acquisition of online advertising firm aQuantive has cleared a major hurdle, receiving Federal Trade Commission approval.

Without the approval of the FTC, which governs anti-trust issues in the US and has overseen a decade of Microsoft-Government anti-trust clashes, the acquisition would almost certainly have been scuttled.

The FTC enforces a waiting period after a company announces an acquisition to review potential anti-competitive issues that arise out of large mergers.

But in a filing with the Securities and Exchange Commission, aQuantive said the mandatory waiting period had passed without the FTC requesting any additional information.

A special meeting of aQuantive shareholders is now scheduled for the second week of August to vote on the Microsoft offer.

Like Microsoft, aQuantive is based in Seattle.

The acquisition was announced in May, just weeks after Google said it would pay US$3.1 billion for the online ad giant DoubleClick. Microsoft has complained that the Google/DoubleClick deal is anti-competitive.

For more Digital Content news, click here.

Monday, April 23, 2007

Google tightens search ad grip, profit soars

INTERNET search giant Google boosted profits in first quarter by nearly 70 per cent, continuing its domination of the paid search segment.

While Yahoo! this month announced a profit slide – despite a still health share of search users – Google posted net income for the quarter of US$1 billion (A$1.2 billion), compared to US$595 million for the year ago quarter.

Revenue jumped to US$3.7 billion compared to US$2.3 billion for the first quarter last year.

Google chief executive Eric Schmidt said the strong revenue and profit result reflected the strength of the company’s core search and ad sales business, and the fact that it had successfully built on its partnership program in the past year.

“We continued to expand our worldwide footprint, adding important new partners and growing our platform to increase our ability to deliver targeted and measurable ads” Mr Schmidt said.

“The ongoing expansion of our network allows us to improve the user experience through new opportunities and programs.”

Revenues from outside of the United States totaled US$1.71 billion, representing 47 per cent of total revenues in the first quarter of 2007, compared to 42 per cent in the first quarter of 2006 and 44 per cent in the fourth quarter of 2006.

Google’s Golden Goose remains its search advertising revenue. According to research group eMarketer, Google owns about 75 per cent of the total search ad market in the US, compared to Yahoo’s 16 per cent.

The company is now seeking to diversify its revenue spread by applying its search expertise into other advertising areas. In the past month the company has signed agreements with satellite television and networked local radio stations to place advertising using more targeted advertising techniques.

Google has also announced a plan to buy online display advertising specialist DoubleClick for US$3.1 billion, though the deal is facing some opposition from competitors and privacy groups saying it gives the company too much market power.

For more e-Marketing news, click here.

Monday, April 16, 2007

Google tightens grip on online ad market

GOOGLE continues to shift away from its search origins, tightening its grip on the electronic advertising market through the acquisition of DoubleClick for US$3.1 billion (A$3.7 billion).

Google walked away as the winner from a fierce three-way bidding war for DoubleClick between Google and its rivals Microsoft and Yahoo.

The US$3.1 billion cash deal nearly triples the US$1.1 billion DoubleClick commanded when it was taken private in 2005 by San Francisco-based private equity firm Hellman and Friedman.

Google enterprise vice-president and general manager Dave Girouard is a keynote speaker at the CeBIT Connect Keynote series on May 1.

Google was already the largest internet advertising company in the world, with the DoubleClick deal further cementing that role as an advertising giant.

In addition to leveraging the DoubleClick corporate rolodex of ad advertisers, advertising agencies and advertising buyers and publishers, the company will use DoubleClick technology to expand beyond simple text ads into multimedia formats.

Google immediately moved to reassure users that the acquisition would not change the company’s policy of ensuring a clear distinction between sponsored links, advertising and search results.

In a statement posted to the company’s corporate blog, Google product management vice-president Susan Wojcicki told users the company had “tirelessly pursued, the idea that serving relevant unintrusive ads would best serve our advertisers in the long term” and that goal would not change.

“Sponsored information served by Google has always been, and will always be, clearly distinguished from objective content available via our search results and across our partner network,” Ms Wojcicki said.

“We want you to find the information that you are looking for—be it in an ad or elsewhere—quickly and without hassle. We know that our collaboration with DoubleClick will serve and advance this goal,” she said.

Google co-founder and technology president Sergey Brin said in a statement that it remained the company’s intention “to make Internet advertising better – less intrusive, more effective, and more useful.”

“Together with DoubleClick, Google will make the internet more efficient for end users, advertisers, and publishers.

Google chief executive Eric Schmidt said “DoubleClick's technology is widely adopted by leading advertisers, publishers and agencies, and the combination of the two companies will accelerate the adoption of Google's innovative advances in display advertising.”

For more e-Marketing news click here.

Thursday, April 5, 2007

Internet ads will overtake radio in 2008

MORE money will be spent globally on online advertising than on radio in 2008, with the internet overtaking radio a year earlier than previously forecast, new research from ZenithOptimedia.

The company said the internet advertising spend would grow six times faster than traditional media between 2006 and the end of 2009 and increase its share of the advertising market from 5.8 per cent to 8.7 per cent.

Online advertising is expected to account for more than 10 per cent of total advertising spending on all media in Australia in 2009.

Global adspend on all media will grow 5.2 per cent in 2007, matching long term trends, though it will grow faster in 2008 as a result of the Olympics and elections.

ZenithOptimedia predicts that internet adspend will grow 28.2 per cent in 2007, while the rest of the market will grow at 3.7 per cent.

While the internet would account for about 9 per cent of global adspend in 2009, it would reach double digits early next decade.

“The internet already attracts more than 10 per cent of adspend in three markets – Norway, Sweden and the UK – and by 2009 we expect it to do so in eleven markets (including Australia, Canada, Japan, South Korea and the United States),” the ZenithOptimedia report said.

The UK leads the world in online advertising, where 16.6 per cent of total advertising spend is now on the internet.

The report downgrades its previous forecasts for newspapers and magazines as publishers – eyeing the growth rates of internet advertising – have decided to invest more in their online products and less in print.

“Ad expenditure is still growing in (newspaper and magazines), in nominal terms at least, but after adjusting for inflation newspaper expenditure is essentially stagnant, as readers and advertisers migrate to the internet,” the report said.

Ad expenditure in Asia Pacific is accelerating in the run-up to the Beijing Olympics in 2008, when growth should reach 7.7 per cent. We then expect growth to slip to 4.9 per cent in 2009 when the one-off Olympics activity drops out.

For more e-Marketing news, click here.

Monday, March 19, 2007

Online ad market: More blistering growth

ONLINE advertising revenue in the US jumped 34 per cent in 2006 to US$16.8 billion, continuing four years of record growth, a report from the Interactive Advertising Bureau and PricewaterhouseCoopers found.

Internet advertising has continued it run of quarter on quarter growth started in mid-2002, with growth rates accelerating in the past two years.

The report put advertising revenue for the fourth quarter last year at US$4.8 billion, a 15 per cent increase over the US$4.15 billion achieved by the industry in Q3.

“Results for 2006 confirm a very healthy environment for online advertising,” said PricewaterhouseCoopers partner David Silverman.

“All signs point to a steady increase in the level of spend by traditional advertisers that are using online advertising as an important part of their media mix.”

“The continued growth in Interactive advertising is clearly based on marketers' recognition that they connect with consumers most effectively through interactive media,” IAB chief executive Randall Rothenberg said.

“The increase underscores marketers' understanding that Interactive advertising can engage consumers, build brands and sell products and services.”

PricewaterhouseCoopers director Peter Petrusky said “online advertisers continue to test how to use the internet with other media to leverage a combination of consumer touch points across different media.”

The 2006 fourth quarter and full year online ad revenue figures were estimated by surveying and aggregating data from the top 15 online ad sellers. The IAB sponsors the Internet Advertising Revenue Report, which is conducted independently by PricewaterhouseCoopers.

For more e-Marketings news click here.