MARKETING AND ADVERTISING

Marketing

Advertising

• 20 September 2006 - Australia – CEASA Figures - Online fuels ad spend increases growth slows
  • Total advertising expenditure for the six months to June 30 was $4.93 billion up form $4.74 billion last year. Industry growth has slowed dramatically from the highs of 2004, which saw a 12.4% increases in the first half and 2005’s first half increase of 9.8%.
  • Metropolitan and national newspapers took the biggest hit with a 1.7 point drop in revenue share and $66 million fall in ad revenue, By comparison regional and daily newspapers grew their revenues by $27 million.
  • Magazines maintained their share of advertising year-onyear,increasing overall revenues by $13 million to $339million. Women’s Magazines drove growth in the sectorincreasing 9.0% year on year.
  • Subscription television and regional TV were the drivers of overall increases in ad spend in the TV sector. Pay TV revenues increased 33% from $74 million to $100 million, lifting overall revenue share to a still low 2%, while regional TV revenues increased $44 million to $43 million. Metropolitan TV shares fell from 24.6% to 23.4%, losing $15 million in revenue for the first half from $1.165 billion to $1.15 billion. TV overall lost a 0.7 point share down to 32.4% from 33.1% while TV revenues increased to $1.594 million from $1.569 million.
  • Radio continued to perform in attracting advertising revenue with an increase of around 2% (2.1%) to a total of $425.1 million but overall share dropped from 8.8% to 8.6%. The metropolitan market recorded growth of around 2% (1.8%) to a total of $280.4 million and regional markets grew by 2.5% to a total of $144.7 million.
  • The outdoor sector continued its good growth achieving a 3.6% share with a $20 million year on year increase in revenues to $174.3 million. Cinema advertising added an extra $1 million in the first half to $41 million.

• August,2006 - Zenith Optimedia Report
  • US Total Advertising spend

Online/Interactive Advertising

• 8 March, 2007 US The Age
  • U.S. online advertising revenue climbed 34 percent to $16.8 billion during 2006, setting a new record for the third consecutive year, according to estimates released Wednesday by an industry trade group.

• 13 February, 2007 - Australia - The value of Australia's online advertising sector hit $1Bn in 2006 according to ABVS, with a growth of 61.5% overall.

• 12 February, 2007 Broadcasting Cable Borrel Associates Report
  • Worth about $161 million in 2006, the US local online video advertising marketplace is expected to grow to $371 million, or 5% of local online advertising, this year and to balloon past $5 billion in next five years.

• 12 January, 2007 – China – Xinhua news agency report China's online consumer market expanded by 47 percent in 2006 over the previous year, following "explosive growth" in online advertising, the report said, without providing figures.

• 5 December, 2006 USA - NYTimes
  • Most forecasters are predicting growth in ad spending in the United States next year of 2 to 5 percent over 2006..
  • The Newspaper Association of America is predicting that spending for ads on the Web sites of newspapers will increase a robust 22 percent next year from 2006.
  • An analyst for Credit Suisse, Debra Schwartz, questioned in a report whether even the prediction for an anemic gain of 1.2 percent was “too optimistic.”
  • The publication predicted that ad spending in newspapers next year will fall 2 percent from 2006, a bigger decline than the 1.8 percent it is forecasting for this year compared with 2005.
  • McCann Worldgroup unit of the Interpublic Group of Companies, predicted that ad spending on the four largest national broadcast television networks would increase just 3 percent next year from 2006.
  • In contrast, ad spending by national advertisers on the Internet will grow five times as fast, at 15 percent, Mr. Coen said.
  • Steve King, worldwide chief executive at ZenithOptimedia, part of the Publicis Groupe — offered a prediction that Internet ad spending next year would grow 29 percent from 2006. He expected online ad revenue to grow at “seven times the rate for traditional ad growth.”
  • Internet ad spending as a percentage of the total for all American media will reach 7.1 percent this year, Mr. King said. He predicts that it will hit 10.4 percent in 2009.

• 4 December, 2006 Britain/US- NYTimes
  • Online advertising is racing ahead in Britain, growing at a roughly 40 percent annual rate, and is expected to account for as much as 14 percent of overall ad spending this year, according to media buying agencies. That is the highest level in the world, and more than double the percentage in the United States.
  • As recently as 2002, many British advertisers were reluctant to go online, too. That year, British advertising online was 1.4 percent compared with 2.5 percent in the United States, according to the Internet Advertising Bureau in Britain and the Interactive Advertising Bureau in the United States.
  • In the following year, Britain overtook the United States, and it has not looked back. In 2005, nearly 8 percent of British ad dollars went online, compared with 4.6 percent in the United States. And, this year, the two bureaus say, the Internet will account for 10.5 percent of British ad spending compared with 5.6 percent in the United States.
  • Media buying agencies like Group M, the media-buying division of WPP Group, estimate that online ad spending in Britain will be even higher — close to 14 percent of the total this year.
  • In the United States, major advertisers are more dependent on traditional media, particularly television. The top 50 advertisers in the United States spent just 3.8 percent of their budgets in the first half of this year on online ads, excluding search-related advertising like that sold by Google, according to data from TNS Media Intelligence.
  • In contrast, large advertisers in Britain appear to be leading the push onto the Internet. British financial-services companies have been particularly aggressive online spenders, in some cases allocating 30 percent or 40 percent of their advertising budgets to the Internet.
  • Search accounts for 56 percent of Internet ad spending in Britain, compared with 42.5 percent in the United States, according to the Internet Advertising Bureau.
  • About 3.9 percent of visits to British online retailers’ sites yield purchases, compared with 2.5 percent of American site visits, according to Coremetrics, an e-commerce tracking service.
  • Group M, for instance, says the Internet could account for 25 percent of British ad spending by 2010. That would place it ahead of television, which accounts for just more than 20 percent now.
  • In 2006, for example, local spending on online ads in the United States will be $1.3 billion — or 8 percent of all Internet spending, according to eMarketer.
  • In Britain, the growth of Internet ads seems to be bringing down the amount of money spent in the overall advertising market as well. Growth in spending on advertising and marketing services is set to slow to 0.3 percent this year, according to Group M, after growth of 4.3 percent last year and 6.7 percent in 2004.

• 24 November, 2006 – Britain - Google and Confederation of British Industry (CBI) survey.The Australian
  • Online spending on marketing will rise by 50 per cent from £2.2 billion ($5.4 million) this year to £3.3 billion in 2009.
  • The firms surveyed are likely to spend nearly £13 billion in three years in internet-based technology, up from the current level of about £ 10 billion a year.

• 2 November 2006 -
  • The Internet Advertising Bureau (IAB UK) said last month that online advertising spending in Britain had jumped 40% in the first half of 2006 compared with a year ago, taking a market share of 10.5% - The Age

• 4 October, 2006 - UK online ad spend worth almost £1bn– TheMediaGuardian
  • The amount advertisers spent on the internet was up 40.3% year on year to £917m in the first half of the year - and will overtake press advertising spend before the end of 2006 at its current rate of growth.
  • According to the report by the Internet Advertising Bureau, the World Advertising Research Centre and PricewaterhouseCoopers, £993.4m was spent on national press advertising in first six months of 2006 - just £76.2m more than online - accounting for an 11.4% share of all ad spend.
  • The internet accounted for 10.5% of UK ad spend in the first half of 2006 - up from 7.3% for the same period last year.
  • TV's share of the market declined by 1.3%, to 22.7%, in the first six months of the 2006. UK advertisers spent £1.978bn on TV ads in total during that period.
  • By comparison, internet spend is now double the size of outdoor in the UK (5.1%), more than twice that of consumer magazines (4.6%) and three times the size of radio advertising (3.4%).
  • Within the overall internet advertising figures, paid-for search - sponsored listings on search engines such as Google that advertisers pay for when a consumer clicks through to their site - was up 57.7% year on year to £531.3m; a 57.9% share of the online total.
  • Online display advertising climbed 32.2% to £215.9m, accounting for a 23.5% share.
  • In the face of a year-on-year fall in traditional press advertising spend, online classified advertising grew 23.4% to £162.2m, taking a 17.7% share of all online revenues.
  • Internet ad spend is set to pass the £2bn mark in 2006, if current growth continues. In 2005, advertisers spent £1.4bn online.

• 27 September, 2006 – In a report this week, research firm eMarketer forecast online ad spending will rise 26.8 per cent this year to $US15.9 billion, marking a slowdown from rates of 30 per cent and above in the past two years.– Australian IT

• 20 September 2006 - Australia – CEASA Figures - Online fuels ad spend increases growth slows
  • 60% growth in online ad spend has fuelled 3.8% year on year growth in advertising expenditure in main media for the first six months of 2006,with metropolitan TV, newspapers and radio ad share being eroded as the boom in online ad revenue continues
  • The online sector increased it share of the overall ad market from 5.5% to 8.5% in the same period. Ad revenue increased to $421 million up from $263 million. Search and directories advertising made up $158 million of the results, online general ads were $133.5 million and classifieds drew $129 million. Newspaper ad revenue slipped by $40 million to $1.81 billion and slipped 2.4 points in revenue share from 39.1% to 36.7%.

• September 2006 - Online Advertising Expenditure Report
  • Online advertising in Australia continues to grow at a faster rate than any other medium, with $263 million spent on the sector in the three months prior to September, making it the highest growth for a third quarter since 2003.
  • The result is a 57.5% increase on the same period last year and brings the total spent on online advertising in the year to date to $684 million.

• 12 September, 2006 - PriceWaterhouseCoopers
  • Internet advertising sales in Australia are forecast to rise 40% to $870 million this year and exceed $1 billion in 2007,according to a PricewaterhouseCoopers report published last month. Newspaper advertising sales are forecast to increase 3.4% a year until 2010.

• 7 September, 2006 - Advertisers look to mobile phones as users seek free TV - The Guardian
  • Informa estimates that the mobile advertising market, forecast to be worth $871m this year, will rocket to $11.35bn in 2011.
  • Mobile search advertising and display advertisements on mobile web pages will account for about $3.1bn by 2011, with text and picture messaging advertising raking in $2.7bn.

• 10 August, 2006 - UK - The Communications Market Report 2006
  • Online advertising revenues continued to rise to around £1.3 billion, worth more than three times that of radio advertising and a third that of television advertising at £3.8 billion.

• 8 August, 2006 -
  • Accounting firm Price Waterhouse Coopers Internet advertisings in Australia will grow to $870 million this calendar year and continue to grow at an annual compound growth rate of 25% to A$1.7 billion in 2010 to sit third behind newspapers and free to air television for revenue generation in four years.
  • An ABVS report found:
  • Online advertising is proving the powerhouse of Australian advertising growth with the sector continues to grow at a phenomenal rate, posting 59.4% year on year growth to $778 million in the financial year to June 30.
  • The strong growth rate has continued with growth in the first half of calendar 2006 to 60.1% over the same period in 2005 to $421 million.
  • Total online expenditure for the second quarter of 2006 topped $226 million.
  • General online advertising has been the standout sector in Q2, surging to 32.2 percent market growth worth $76 million. Classifieds online advertising has grown 8.1 percent to $67million and search and directory by 9.9 percent to $83 million during the quarter.
  • The general online advertising sector also diversified in terms of categories, with the auto sector increasing its share of general advertising as well as in its traditional sector of Classifieds.
  • Recruitment has been identified as the fastest growing category in this sector with 33% growth in the quarter as well
  • The $778 million in expenditure is reported in three broad advertising categories – General Advertising which accounted for 31.8% of total online ad expenditure, Classifieds Advertising which accounted for 31.2% and Search and Directories Advertising which accounted for 37%.
  • The financial year revenues for General Advertising grew 60.7% to $247.5 million with revenues for Classifieds Advertising up by 43.8% to $243 million and Search and Directories advertising by 74.2% to $287.5 million.

• 20 July, 2006 - Of the $161 million to be spent on internet advertising here this year, only 32 per cent is for ads surrounding online content. - The Australian

• 12 July, 2006 - Meet the Always On Generation SMH
  • The Australian online advertising market grew nearly 50 per cent last year, with $605 million in revenue. The figure is expected to increase significantly to more than $1.5 billion by 2009, according to a report by research group Frost & Sullivan.

• 28 Jun, 2006 - Online advertising in Australia totalled $620 million in 2005, an increase of 60 per cent on 2004. This strong performance continues the recent trend, with a 271 per cent rise in expenditure in only four years. source AFC

• 26 June, 2006 - Web ad spending soarsThe Guardian
  • UK Advertising expenditure in the press declined by 3.7% in real terms in 2005, while the internet posted another bumper performance, rising 62.3%.

• 21 June, 2006 PWC Global Ent & Media Outlook: 2006-2010 - WorldwideHollywoodReporter
  • Advertising is expected to grow from $383 billion last year to $521 billion, with all ad categories set to enjoy modest growth.
  • Internet advertising will see the largest five-year surge -- at an 18.1% compound rate -- from an estimated $22.45 billion last year to $51.6 billion in 2010.
  • PwC projects a compound annual growth rate of 12.9% for Online Advertising
  • online ads, radio/out-of-home media,PwC expects to grow 7.6%;

• April, 2006. Despite only a third of homes being enabled, over 75% of advertisers (according to IDS) have given iTV advertising a whirl and many have found it extremely successful. Only 2% say that it was an outright failure. article Media Guardian

• 12 April, 2006. Web 2.0 Advertising Figures - source MediaResearch
  • User-generated media remains primarily national in scope with 98.1%, or $20.0 million, of all advertising spending coming from the broader market in 2005
  • Advertising networks and click-throughs are the largest ad insertion methods, generating $8.0 million and $7.8 million, respectively
  • Blog advertising accounted for 81.4%, or $16.6 million, of total spending on user-generated online media in 2005, but blog ads will comprise only 39.7%, or $300.4 million, of overall spending in 2010
  • Podcast advertising totaled only $3.1 million in 2005, but is projected to reach $327.0 million in 2010, when it will account for 43.2% of all user-generated media advertising
  • Spending on RSS (Really Simple Syndication) advertising totaled $650,000 in 2005 and will grow to $129.6 million in 2010
  • Total spending on user-generated online media is forecast to grow at a compound annual rate of 106.1% from 2005 to 2010, reaching $757.0 million in 2010
  • Technology was the largest single category at $4.0 million in 2005, due primarily to the technology-savvy early adopters of user-generated media
  • Auto was the second largest marketing category, generating $3.9 million in 2005, as car manufacturers utilized user-generated media to market their higher-end models to the "influential" demographic
  • The media industry spent $3.2 million to advertise in user-generated media in 2005, as the industry tried to capitalize on its advanced knowledge of the consumer shift away from traditional media MediaResearch

• 28 Feb, 2006 - UK C21 Media
  • Total television advertising revenues in Q2 and Q3 of 2005 declined by 1% compared with the same two quarters in 2004, while net advertising revenues were £789m in Q3 2005
  • Satellite channels were the only channels to show growth during this period, but in Q3 they too began to decline and ended the year at £177m, albeit more than C4 - Ofcom

• 21 Feb, 2006 - Online ads continue growth article
  • the Australian market for online advertising grew 60% in 2005 to $620 million
  • general online advertising made up 31.3% of the total in 2005, with classifieds accounting for 33.2% and search and directories 35.5%
  • much of the growth in online advertising was coming at the expense of other media

• 13 Feb, 2006, U.S. It is estimated that 50% to 70% of viewers playing back shows zip through the commercials, casting doubt on their worth to advertisers - source Nielsen article nytimes

• Old ad models: The average cost of a 30-second spot in “Desperate Housewives” is $439,499, while the same ad in “Lost” costs buyers $333,166 - Advertising Age

• Growth in advertising on the internet in 2006 at 60% will dwarf growth in all other media. - source CEASA

• A quarter of people are prepared to pay to avoid watching advertisements. - source Contentworx

• Australia is only behind Canada and the US in it's use of eCommerce - source Global Reach

• 2005 - about 5 ~10% of user time online is spent searching yet about 40-60% of online media dollars are spent on search keyword buying

• 30% of all media time is spent exposed to more than one medium at a time

• New users can fit 44hrs of activity into one day

• Spending on internet ads in Australia leapt nearly 50 per cent to $605 million in 2005. The medium is expected to grow by an extra 25 per cent each year until 2009 suggesting that poorer cousins like magazines and radio will be swept aside - source Frost & Sullivan

• Jupiter Media Metrix predicts that UK iTV advertising will represent $4.4 billion in revenues by end 2005. Sky has had a significant amount of success so far with over 280 different interactive campaigns to date that have generated around 1.9m online responses.

Viral Distribution

• A study by Sharpe Partners revealed that 89 % of adult Internet users in America share content with others via email.

Frequency US Internet Users Share Content - % of respondents

• Daily or most days - 25%, Several times a week - 23, Once a week - 15, Several times a month - 11, Several times a year - 15, Never - 11
• The study generated some interesting results regarding the type of content that is sent. The most popular content is humorous material, with 88 % forwarding jokes or cartoons.

Content Shared by US Internet Users (%of respondents)

• Content % Sharing
  • Humorous/jokes/cartoons - 88%, News item/article - 56, Health care/medical - 32, Religious/spiritual - 30, Games - 25, Sports/hobbies - 24, Business/personal finance - 24, Sexually provocative content - 12
• The study found that adding overt brand messages only slightly reduces the likelihood that the content will be shared.
• 56% of the respondents are less or slightly less likely to forward such content
• 43% said they are more or slightly more likely to send marketing-related messages
• 5% refuse to share content that contains a clear brand message

Source: Sharpe Partners, Inc, January 2006

JibJab

• JibJab's online lampoon received 10.4 mill unique hits in July. More than three times as many visits as did the official campaign sites of the presidential candidates themselves. JibJab didn't spend a cent to promote the movie instead, a promotional e-mail sent out to 250,000 registered members of the company's "fan list" set off a tidal wave of Internet buzz

BigAd

• More than 2 million people around the world have viewed the Carlton Draught Big Ad. Before the television spot began running on TV, 1 million people had already seen the ad online. The Australian TV commercial was originally sent to 4,000 Foster’s employees in July.