December 8th, 2010
Are You In The Know? Display Spending Begins to Catch Up with Search
Growth in spending on online display ads will outstrip that for paid search through 2014, eMarketer forecasts, though search will continue to take the greater share of dollars.
In 2010, both search and display will see increases greater than the rise in total US online ad spending, estimated by eMarketer at 13.9%. But between 2011 and 2014, eMarketer projects online display spending will grow faster than overall online spending, while search spending will lag slightly behind.
The increase in display advertising will be driven partly by the dramatic rise predicted in online video advertising, set to grow by at least 34% every year through 2014. Banner ads will experience more moderate gains of between 7% and 16.2% annually, while rich media spending will stagnate.
In 2010, eMarketer estimates US advertisers will spend $12.37 billion on paid search, compared with $8.88 billion on online display ads. Search will still get the most dollars in 2014, at $18.84 billion, but display will have closed the gap somewhat and reach $15.92 billion in spending that year.
“The growth of display doesn’t necessarily mean that advertisers are spending less on search,” said David Hallerman, eMarketer principal analyst. “Much of the display ad spending gains are new dollars coming online—which is part of a bigger trend towards more spending on branding, rather than spending focused on direct response alone.”
Display ads like static banners have a bad reputation for low clickthrough rates but still serve an important branding purpose. “Banner ads today mainly have subliminal effects on the audience,” said Hallerman. “That makes banners difficult to measure directly. However, the uptick in search results due to banners from the same advertiser is a long-standing pattern seen by sophisticated digital marketers.”
Source: eMarketer
My Two Cents
I agree that much of the display ad spending gains are new dollars coming online but you must also note that display advertising also carries a higher price tag than search advertising. Especially video or rich media advertising.
With rich media you also have to pay a third party to serve the ads which increases your overall cost. Not to mention additional costs incurred on the production side of it. I am a firm believer in running parallel display and search campaigns to maximize your overall web exposure to convert a higher ROI.
November 15th, 2010
Environmental-lie?
The other day I was driving home flipping through the radio channels and I heard John Tesh drop one of his pearls of wisdom. He said that several thousand “environmentally friendly” products had been evaluated for their level of environmental friendliness and ninety-percent had been caught in a big fat lie. I hit the brakes as the full meaning of that statement hit me. He was saying that the vast majority of products marketed as eco-friendly were not offering any benefits to the environment whatsoever. They were frauds.
I was stunned. So many people have embraced the mantra: reduce/reuse/recycle. They go far out of their way and spend a considerable amount of extra money to help the planet. And now these bastions of earth friendliness, the caring companies with a corporate conscience who are entreating us to join in and enable them to save the planet have become the enemy.
Now who can you trust? It seems unthinkable to keep providing money to the lying SOBs but what’s the alternative? Stop supporting green (or faux green) living altogether? I honestly don’t have the answer.
November 10th, 2010
Move Over Thursday Night
Thursday nights are down 17% in the new TV season, and now rank behind Sunday and Monday. Sunday is the top night, anchored by NBC’s Sunday Night Football.
The top networks are averaging a 13.6 in 18-49s on Thursdays, down 17% from a 16.4 rating in the first seven weeks of last season. On Sunday, the Big 4 average a 17.0 (down a hair from a 17.2 last season, collectively; NBC is up 24% on that night). Mondays are averaging a 14.3, down from last year’s average of 15.5.
ABC’s Particular Struggles
ABC is having a particularly tough time on Thursdays, and is down 35% while it struggles to find an 8pm show that works. Its first try, My Generation, lasted just two weeks.
But despite its challenges, ABC has won on Thursday nights seven weeks in a row. Last week, Grey’s Anatomy was tops in the 9pm hour in 18-49s, giving it status as the No. 1 series in the slot for the 7th week in a row. The show topped second-place CSI (on CBS) by 30%, NBC’s comedies (The Office/Outsourced) by 34%, and Fox’s Fringe by 139%, according to TV by the Numbers.
CBS is down just 7% for the night, thanks in large part to its popular The Big Bang Theory which was moved from Monday to Thursday. CBS also has a strong Monday lineup with popular shows like How I Met Your Mother, Rules of Engagement and Two and a Half Men as well as new shows Mike & Molly and Hawaii Five-O.
November 3rd, 2010
Are You In The Know? Key Consumer Trends in 2011
According to a compilation and analysis of current studies, Mintel predicts nine key consumer trends for the year ahead, examining how long term behavior has been impacted and created a new way of life. In 2011, consumers are living for the long term with attitudes inspired by a changed value set.
1. Renewed emphasis on prevention will drive consumers to think defensively. In the UK, 43% of consumers say “trying to add to my rainy day savings/emergency fund” is a priority for this year, up 15% from last year. In the US, a third of consumers say they’re using debit rather than credit, and debit transactions are forecasted to rise nearly 60% between 2000 and 2010. Consumers want to know what they’re getting themselves into. So, 2011 may see the need for brands to demonstrate how a product or service delivers long term benefits or prevents problems down the road.
2. For brick and mortar retailers, discounting is a no-win battle against the internet. In the US, 35% of consumers say their choice of store is determined by special offers or discounts. In 2011, brands need to offer more than just retail, and be a venue, not just a shop. Exclusivity and environment may be key aspects to engage consumers with real life, not virtual, shopping experiences.
3. With smartphones becoming the dominant mobile force, Quick Response and app technology will provide portals into unique experiences and improve our quality of life. In the US, sales of smartphones grew 82% from 2008 to 2010. As consumers are empowered, 2011 will see people take a deeper interest in where they are. Geography and status can be redefined through retail, presenting brands with an opportunity for increased location based services, promotions and solutions.
4. Economic uncertainty has changed the workplace and the meaning of job security for the foreseeable future. As a result consumers will continue to question higher education’s ROI and alternative channels for learning will gain credibility. In 2011 we may see more lifelong learning in the workplace, corporate sponsored degrees and companies investing in employees through education and training rather than salary or benefits. And, learning while doing, rather than learning in a lecture hall, with DIY education gaining steam.
5. Women are earning and learning more than men, creating new gender roles in business and consumerism. In 2011, age is no longer an easy marker for lifestage. 2011 may see a counter trend to the ‘metrosexuality’ of men in a ‘masculinization’ of women. Implications for how brands market to women will be big, especially in sectors such as automobiles and sports. With men helping around the house more than ever, there may be an opportunity for brands to cater household products, as well as retail experiences. In the US in 2008, 27% of men reported being the sole cleaner in their household; in 2010, that number jumped to 32%.
6. People are working beyond retirement. With half of Americans having no retirement account, the number of over 65s working will reach nearly 20% by 2014. In the UK, 77% of over 55s plan to continue working after retirement age “in order to enjoy and prolong a better standard of living.” In 2011, this group may prove an untapped market, affecting a number of consumer sectors. Vitality, energy and longevity will become key product qualities in the food and drink sector, while health and beauty messages may need to center on anti-aging properties.
7. Attitude toward weight is polarizing, pitting the rise of the super-healthy against the eternal appeal of indulgence. In the UK, almost a quarter of women wear clothes in sizes 18 and over, more than 30% of UK children are now classed as overweight, and 34% of US adults age 20 and over are obese. 2011 may see a wider array of products from portion control and more info on packaging to low-cost healthy fare and products to firm and salve chaffed or sagging skin.
8. Modern city dwellers have a growing love of gardening and a need for nature and with fresh, organic produce. In the US, 26% of internet users purchased vegetable seeds in past year, 19% bought vegetable/flower garden fertilizer and 27% said they like to grow vegetables at home. In the US, 40% of people with a garden agree “growing fresh food to cook with” is important. In 2011, rural tourism, working farm holidays and garden leisure may benefit, while rising food and commodity prices may see a boost for seed sales as this trend develops.
9. In an ever more digital era, automated technology machines are replacing people, creeping into new territories, including hospitals, libraries, pharmacies and the home. 2011 may see certain jobs permanently displaced by technology, including service jobs, not just manual or factory work.
Source: Research Brief From The Center For Media Research
October 26th, 2010
Gartner Identifies the Top 10 Strategic Technologies for 2011
Technology research firm Gartner recently released their list of the top 10 strategic technologies for 2011. Gartner defines ‘strategic technologies’ as those that have just matured or are still emerging.
I was struck by the fact that at least six of the technologies have already, or will, impact brand strategy and communications planning. Many of these are already being employed at some level.
Listed below are the six technologies with a brief explanation taken from the Gartner press release.
Mobile Applications and Media Tablets
Gartner estimates that by the end of 2010, 1.2 billion people will carry handsets capable of rich, mobile commerce providing an ideal environment for the convergence of mobility and the Web. Mobile devices are becoming computers in their own right, with an astounding amount of processing ability and bandwidth. There are already hundreds of thousands of applications for platforms like the Apple iPhone, in spite of the limited market (only for the one platform) and need for unique coding.
The quality of the experience of applications on these devices, which can apply location, motion and other context in their behavior, is leading customers to interact with companies preferentially through mobile devices. This has lead to a race to push out applications as a competitive tool to improve relationships and gain advantage over competitors whose interfaces are purely browser-based.
Social Communications and Collaboration
Social media can be divided into:
- Social networking —social profile management products, such as MySpace, Facebook, LinkedIn and Friendster as well as social networking analysis (SNA) technologies that employ algorithms to understand and utilize human relationships for the discovery of people and expertise.
- Social collaboration —technologies, such as wikis, blogs, instant messaging, collaborative office, and crowdsourcing.
- Social publishing —technologies that assist communities in pooling individual content into a usable and community accessible content repository such as YouTube and flickr.
- Social feedback – gaining feedback and opinion from the community on specific items as witnessed on YouTube, flickr, Digg, Del.icio.us, and Amazon.
Gartner predicts that by 2016, social technologies will be integrated with most business applications. Companies should bring together their social CRM, internal communications and collaboration, and public social site initiatives into a coordinated strategy.
Video
This is not a new media form, but its use as a standard media type used in non-media companies is expanding rapidly. Technology trends in digital photography, consumer electronics, the web, social software, unified communications, digital and Internet-based television and mobile computing are all reaching critical tipping points that bring video into the mainstream.
Over the next three years Gartner believes that video will become a commonplace content type and interaction model for most users, and by 2013, more than 25 percent of the content that workers see in a day will be dominated by pictures, video or audio.
Next Generation Analytics
Increasing compute capabilities of computers including mobile devices along with improving connectivity are enabling a shift in how businesses support operational decisions. It is becoming possible to run simulations or models to predict the future outcome, rather than to simply provide backward looking data about past interactions, and to do these predictions in real-time to support each individual business action.
Social Analytics
Social analytics describes the process of measuring, analyzing and interpreting the results of interactions and associations among people, topics and ideas. These interactions may occur on social software applications used in the workplace, in internally or externally facing communities or on the social web.
Social analytics is an umbrella term that includes a number of specialized analysis techniques such as social filtering, social-network analysis, sentiment analysis and social-media analytics. Social network analysis tools are useful for examining social structure and interdependencies as well as the work patterns of individuals, groups or organizations. Social network analysis involves collecting data from multiple sources, identifying relationships, and evaluating the impact, quality or effectiveness of a relationship.
Context-Aware Computing
Context-aware computing centers on the concept of using information about an end user or object’s environment, activities connections and preferences to improve the quality of interaction with that end user. The end user may be a customer, business partner or employee.
The other strategic technologies are cloud computing, storage-class memory, ubiquitous computing and fabric-based infrastructure and computers.
Are you using these technologies to your advantage?
October 25th, 2010
Chico’s Fall 2010 TV spot – So Close And Yet a Million Miles Away
When I saw your Fall TV spot I thought it was brilliant! Your model is the quintessential 50-something woman. The one so many of us dream of being. She’s cool and hip – gorgeous with a look of intelligence. I can relate to her!
I shop at Chico’s on occasion but I have steadfastly avoided anything that resembled an “outfit”. I’ve never wanted to be tainted with the slightly dowdy, more mature woman look that I’ve always associated with the brand. Sure they have an occasional garment or piece of jewelry that’s cool enough to fit into a working professional’s wardrobe – but that’s about it.
The new TV spot changed everything. You mean if I buy my outfits at Chico’s I’ll look like her? I’m in, baby!
I told my husband that Chico’s had finally gotten it right. He googled the campaign and told me the model in the spot is 36. Come on guys. Did you think we wouldn’t find out? You don’t get me at all do you?
October 12th, 2010
You Say Either and I Say Either.
In order to have a mutually beneficial vendor-client relationship both parties must be on the same page. We must make sure we listen to each other and ask the right questions to ensure we truly understand one another.
In an industry that is riddled with lingo and acronyms it is very easy for people to be saying the same word but have different meanings. While someone may throw out the term “brand”, it could mean one thing to a small retailer and something entirely different to a large service oriented company.
Leave egos at the door and keep your minds open to different ideas and perceptions.
October 5th, 2010
Those that DO
There are some amazing people who dive in to make something special happen that we all benefit from. They have big visions, and they don’t just talk it, they walk it…all the way to the finish line. They aren’t daunted by the enormity of the task. Or the numerous barriers in their way. They simply take one step at a time and persevere. And they achieve amazing results.
Anne Trumble and the crew involved with the Emerging Terrain Stored Potential project are among those that fall into this group of people. Anne & Emerging Terrain are behind the visual display on the old Brancroft street grain elevators we see just north of I-80. They spearheaded this collaborative artistic endeavor to re-purpose the derelict, yet iconic, historic landscape structure as contemporary cultural awareness.
I stumbled across a post about this effort last April and was very intrigued by the idea. The more I learned, the more intrigued I became and the closer I followed the developments
On Sunday, a perfect October day, I joined 500 people (including every featured artist) for an amazing dinner prepared with local products by local chefs at the base of the structure to culminate the success of this incredible project. And a success it is.
There are some great photos of the event and dinner (not like the cruddy ones taken by my phone) by Sarah-Mai at Eat Pure and on Emerging Terrain’s Facebook page. Slide show images at KETV. Video on WOWT.
About the visionary and organizer:
Anne Trumble is a landscape architect by training; a writer, teacher, and explorer by desire. Of course everything she does is about landscape, most notably those that actually aren’t designed but happen by chance, necessity, and accident. She’s lived, studied and worked in Vancouver, Cuba, Japan, New York, and most recently Madagascar realizing a serious predilection for islands – the antithesis of her upbringing in the bulls-eye of the United States – Omaha, Nebraska. Although she resides in New York City where she teaches landscape design at Columbia University and works on various design projects, she daydreams about the Jeffersonian Grid, thus explaining why she began Emerging Terrain, a non-profit research and design collaborative with a mission to creatively disseminate information to the public about the social, cultural, and economic factors that shape the built environment.
About Anne from the project background on Kickstarter.com:
“I’ve been obsessed with grain elevators since I was a little kid growing up in the Midwest. I remember going to the elevator to deliver grain. While sitting in line waiting for our turn to unload, I’d stare out the truck window up at the enormous structure and think “that would be so cool as something else”…………
Between then and now, I’ve traveled the world, studying and working in all things landscape; no adventure passed up that is even remotely related to how we use and interact with land. I’ve since re-focused the obsession to the Midwest, in particular suburbs in place of corn fields and thus, derelict grain elevators. They’re no longer necessary.
What do we do with these relics that are too heavily engineered to demolish?”
What she did was amazing. Artists from all over submitted designs and 13 of those now grace the tall slender structures for all of us to enjoy. The panels will hang in Omaha for 3-4 months then move on to other vacant elevators before being re-purposed into temporary shelter and sent to a country in need.
Bravo to all involved. And thank you!
October 5th, 2010
Are You In The Know? Mobile And Social Dominating Local Search
About 45% of consumers don’t have a specific business in mind when conducting a local search online. In fact, more local business searchers begin with general keyword terms in search queries. They have products and services in mind, but they are not sure where to make the purchase, according to a study released Monday from 15miles, the local, mobile and social marketing arm of TMP Directional Marketing.
On the other hand, 56% of social and 60% of mobile users are more likely to search with specific businesses in mind because they are already outside the home looking for a nearby business to fill a need. The study points to a lack of sophisticated search functions in social networks for the differences.
Search engine queries continued to increase at a strong rate with 9% year-over-year growth. Non-search engine queries such as Facebook and craigslist rose 22%, off a smaller base, to capture more than one-third of total query volume. This also impacts local. Of the 9% of local business searchers who use social networks, 93% said they use Facebook to find information on local business.
Most research today focuses on where searches happen, but this study looks at where sales occur. Google, Bing, Facebook and Twitter are just a sample of the major players to enhance local search features in the past year. It also examines how to make sense of consumers’ changing behaviors across various media types, and what impact search trends have on the bottom line.
Trend 1: Online search is the preferred method for information about local businesses, with 70% of consumers citing online sites as their primary source.
Trend 2: Search engines are most popular, but they are not growing as fast as other media.
Trend 3: Local searchers are more apt to buy.
Trend 4: Businesses must develop a comprehensive search presence with essential information.
Trend 5: To develop a complete search presence, local businesses must consider every avenue.
Trend 6: Print is declining, but it still holds value for today’s consumers as a secondary source.
Trend 7: With emerging media on the rise, a diverse media mix must now include social and mobile marketing.
Consumers who use social networks and mobile smartphones are more likely to use and write reviews. More than 40% have submitted between two and five reviews in the past 30 days. In fact, 78% of social networkers — up 3% from the prior year — and 71% of mobile users — up 9% from the prior year — consider consumer ratings and reviews important in making their purchase selections.
Of those participating in the survey, 81% believe it’s important for local businesses to respond to questions and complaints on social sites; 78% want special offers, promotions and information about events; and 66% believe that company photos are important.
Source: MediaPost
October 1st, 2010
Televisions Are Becoming More Interactive
After years of speculation and rumors, Canoe Ventures launches their interactive TV platform.
Marketers can place overlays in spots that prompt viewers to click-through and request a coupon or sample. Cablevision’s AMC and Comcast’s E! and Style are teed up to run the spots now, while the Discovery Channel and two NBC Universal cable channels are anticipated to be ready by year’s-end.
Canoe Ventures’ ITV Solutions allow programmers to better engage with their viewers through innovative marketing applications.
So far, the “request-for-information” spots can only be delivered into some homes served by Time Warner Cable and Comcast. Verklin would not release the number, but it is likely no more than 15 million. Next year, Canoe aims to be able to stream spots into households served by TWC, Comcast, Cox, Cablevision, Charter and Bright House — all part owners of Canoe.
Networks license the technology and then sell it to advertisers. Canoe then shares in the proceeds of a deal.
Canoe has data showing that the simple appearance of an overlay on screen during an ad raises brand recall — even if a viewer takes no action. “There’s value to an unclicked banner”.
But could the triggers and prompts cause a backlash? Since few ads have them it’s unlikely but if this concept hits the mainstream then I think it will definitely cause some issues with viewers. Only time will tell.
Mobile Bar Codes Coming to Your TV
Bar codes have been seen flashing on TV screens across the country allowing you to scan them with your smartphone and get instant information.
The process works like this: bar codes are embedded in commercials that appear on the screen. Then a viewer with a smartphone scans them and gets access to more information about a product, which could also include a discounted price.
These mobile bar codes are known as QR Codes, for “quick response.”
QR Codes, already widely used in Europe and Asia, allow advertisers to place bar codes on posters, product packaging and TV commericals and turn these objects into links to online content.
Using bar codes is starting to spread, because more people are using smartphones, and many of those phones have the scanning application to read the codes.
The Weather Channel and HBO also have tested the technology.
Still, there are challenges for TV advertising, such as time constraints. But other observers see bar code technology as a major advertising tool of the future.