Thank you for being such a loyal blogging group. We have moved our blog to www.marzandev.com I invite you to check it out and post away.
Thank you
Alberto Marzan
Marzan Interactive
Monday, June 29, 2009
Tuesday, June 12, 2007
Q1 Web Advertising 26% More Than Q1 '06
According to a recent IAB release, Internet advertising revenues reached a new record of $4.9 billion for the first quarter of 2007. The 2007 first quarter revenues represent a 26 percent increase over Q1 2006 at $3.8 billion and a 2 percent increase over Q4 2006 at $4.8 billion. For your convenience, annual Internet revenues are included as an historical reference.
IAB President and CEO, Randall Rothenberg, said "The continued growth of online ad revenues clearly illustrates marketers' increased comfort with this medium... new platforms and technologies that enrich interactive advertising guarantees that this growth trend will continue."
Peter Petrusky, director, PricewaterhouseCoopers, a partner in the study, said "...Given these results... expect continued strong revenue growth buoyed by an expanding broadband subscriber base... more users spending more time online... (and) a platform for rich media and video ads that dial-up connections can't render."
Internet Ad Revenues (Billion Dollars)
Year
Annual Web Revenue
Q1 2007
1997
$.91
1998
$1.9
1999
$4.6
2000
$8.1
2001
$7.1
2002
$6.0
2003
$7.3
2004
$9.6
2005
$12.5
2006
$16.9
2007
$4.864
Source: PwC/IAB Internet Advertising Revenue Report
Conducted by the New Media Group of PricewaterhouseCoopers, the "IAB Internet Advertising Revenue Report" was started by the IAB in 1996, and represents data from all companies that report meaningful online advertising revenues.
IAB President and CEO, Randall Rothenberg, said "The continued growth of online ad revenues clearly illustrates marketers' increased comfort with this medium... new platforms and technologies that enrich interactive advertising guarantees that this growth trend will continue."
Peter Petrusky, director, PricewaterhouseCoopers, a partner in the study, said "...Given these results... expect continued strong revenue growth buoyed by an expanding broadband subscriber base... more users spending more time online... (and) a platform for rich media and video ads that dial-up connections can't render."
Internet Ad Revenues (Billion Dollars)
Year
Annual Web Revenue
Q1 2007
1997
$.91
1998
$1.9
1999
$4.6
2000
$8.1
2001
$7.1
2002
$6.0
2003
$7.3
2004
$9.6
2005
$12.5
2006
$16.9
2007
$4.864
Source: PwC/IAB Internet Advertising Revenue Report
Conducted by the New Media Group of PricewaterhouseCoopers, the "IAB Internet Advertising Revenue Report" was started by the IAB in 1996, and represents data from all companies that report meaningful online advertising revenues.
Friday, May 25, 2007
Nearly six in 10 Web users
Nearly six in 10 Web users (59%) have watched online video ads, according to a new study by The Kelsey Group.
"YouTube has largely popularized the concept of watching short videos on a computer screen and has likewise familiarized consumers with the idea of watching short video ads," states the report. What's more, people aren't just watching ads, but the majority of those who view an ad also either visit a Web site or take some other action, according to Kelsey, which based its report on a survey. Of 296 respondents who had viewed a video ad, 43% said they then clicked on a Web site, while 22% requested more information, 18% went to a store, 15% made a purchase, 11% forwarded the video to a friend, 9% signed up for a product or trial and 3% ordered a subscription. Forty-five percent took no action.
Why are response rates relatively high? Kelsey surmises it's because people watch video on the Web while literally "leaning forward," with one hand on the mouse ready to click somewhere else. "Users who views ads during a television broadcast are often on their couches in 'lean back' mode and are thus unlikely to immediately respond in any meaningful way beyond making a mental note. Users watching video on their PCs are conversely in 'lean forward' mode and are likely engaged in a search process to find a product or service," states the report.
But the report shouldn't necessarily be seen as an endorsement of the repurposed TV ads that currently precede many online videos. To the contrary, Kelsey specifically said that one of the benefits of online video ads was that marketers could experiment with formats that were more creative than the traditional 30-second television spot.
"YouTube has largely popularized the concept of watching short videos on a computer screen and has likewise familiarized consumers with the idea of watching short video ads," states the report. What's more, people aren't just watching ads, but the majority of those who view an ad also either visit a Web site or take some other action, according to Kelsey, which based its report on a survey. Of 296 respondents who had viewed a video ad, 43% said they then clicked on a Web site, while 22% requested more information, 18% went to a store, 15% made a purchase, 11% forwarded the video to a friend, 9% signed up for a product or trial and 3% ordered a subscription. Forty-five percent took no action.
Why are response rates relatively high? Kelsey surmises it's because people watch video on the Web while literally "leaning forward," with one hand on the mouse ready to click somewhere else. "Users who views ads during a television broadcast are often on their couches in 'lean back' mode and are thus unlikely to immediately respond in any meaningful way beyond making a mental note. Users watching video on their PCs are conversely in 'lean forward' mode and are likely engaged in a search process to find a product or service," states the report.
But the report shouldn't necessarily be seen as an endorsement of the repurposed TV ads that currently precede many online videos. To the contrary, Kelsey specifically said that one of the benefits of online video ads was that marketers could experiment with formats that were more creative than the traditional 30-second television spot.
Thursday, May 17, 2007
Social Media Marketing Aids Online Visibility
IN THE REAL WORLD WE turn to colleagues and friends for advice on what products and services to buy; generally trying to avoid the salesperson. Understandably this is why social media is so effective and can facilitate an increase in a marketer's bottom line. No longer do we have to rely only on mass media for our information and advice. Social media (and Web 2.0 technologies) allow us to create innovative targeted campaigns to promote brand and product awareness and can provide us with valuable feedback.
In our 2007 Online Marketing Predictions report, we concluded that social networking will continue growing strong but will become very niche-like, based around unique user personalities. This trend changes the way marketers reach out to their targets. It's no longer the company that is looking for the customers. Potential customers are online, actively searching for the best place to find the product or service they want.
From blogs to podcasts, and RSS feeds to text messaging, online communities enable marketers to have a direct connection with highly targeted individuals. Understanding this niche aspect and communicating with users in a way that is non-disruptive is vital for a successful social media marketing campaign. Additionally, this shift is also enabling a new class of autonomous newsmakers and brand influencers to emerge, many wielding the word-of-mouth influence and reach of traditional media, but to smaller and more qualitative audiences.
This transformation of the media landscape creates both opportunities and challenges for corporate marketers. It takes exactness to successfully navigate and execute social media programs.
The University of Massachusetts - DartmouthCenter for Marketing Research completed a recent study on social media adoption among 121 members of the Inc. 500 and uncovered some interesting adoption trends:
How familiar are the Inc. 500 with various social media?
42% are familiar with social networking.
38% are familiar with message boards.
36% are familiar with blogging.
What types of social media are they using?
33% are using message boards.
27% social networking.
24% online videos.
19% blogging.
Finally, 66% of those surveyed said social media was either "very important" or "somewhat important" to their marketing strategy.
Additionally, a survey from KnowledgeStorm shows that more than 80% of business and IT professionals worldwide read blogs.
Other key findings:
53% of respondents say blogs impact their work-related purchases.
53% of respondents read blogs weekly for business information.
57% of respondents read blogs weekly for tech information.
59% of respondents are "somewhat" to "very" familiar with RSS feeds.
31% of respondents subscribe to RSS feeds.
Blogs, in particular, give marketers the perfect opportunity to generate interest and demand -- and more important, grow relationships with customers. However, some companies are a bit afraid of allowing a vehicle for negative comments. This should not be a concern - you look more credible if you allow some criticism. According to Bob Lutz, General Motor's vice chairman, global product development, "the key is to leave the corporate-speak behind and keep the tone conversational, open, and honest."
In the same vein, Microsoft has found blogs authored by their product managers to be very helpful. Employee blogs such as these are kind of like Open Source -- come here and help us make our product/service better, or help us co-develop. This helps Microsoft understand its customers' needs better and can help it pick up bugs sooner, which ultimately translates to the bottom line.
The ultimate goal of SMM is to establish a voice and two-way communication, turning marketing into a soft sell, rather than a hard one. SMM is clearly a viable option for reaching B-to-B and B-to-C buyers. These new online media formats help companies better address shifting preferences and opinions. Marketing campaigns will achieve even greater results because companies are now able to truly listen to and come to understand their customers' needs and wants, which is good for the bottom line.
In our 2007 Online Marketing Predictions report, we concluded that social networking will continue growing strong but will become very niche-like, based around unique user personalities. This trend changes the way marketers reach out to their targets. It's no longer the company that is looking for the customers. Potential customers are online, actively searching for the best place to find the product or service they want.
From blogs to podcasts, and RSS feeds to text messaging, online communities enable marketers to have a direct connection with highly targeted individuals. Understanding this niche aspect and communicating with users in a way that is non-disruptive is vital for a successful social media marketing campaign. Additionally, this shift is also enabling a new class of autonomous newsmakers and brand influencers to emerge, many wielding the word-of-mouth influence and reach of traditional media, but to smaller and more qualitative audiences.
This transformation of the media landscape creates both opportunities and challenges for corporate marketers. It takes exactness to successfully navigate and execute social media programs.
The University of Massachusetts - DartmouthCenter for Marketing Research completed a recent study on social media adoption among 121 members of the Inc. 500 and uncovered some interesting adoption trends:
How familiar are the Inc. 500 with various social media?
42% are familiar with social networking.
38% are familiar with message boards.
36% are familiar with blogging.
What types of social media are they using?
33% are using message boards.
27% social networking.
24% online videos.
19% blogging.
Finally, 66% of those surveyed said social media was either "very important" or "somewhat important" to their marketing strategy.
Additionally, a survey from KnowledgeStorm shows that more than 80% of business and IT professionals worldwide read blogs.
Other key findings:
53% of respondents say blogs impact their work-related purchases.
53% of respondents read blogs weekly for business information.
57% of respondents read blogs weekly for tech information.
59% of respondents are "somewhat" to "very" familiar with RSS feeds.
31% of respondents subscribe to RSS feeds.
Blogs, in particular, give marketers the perfect opportunity to generate interest and demand -- and more important, grow relationships with customers. However, some companies are a bit afraid of allowing a vehicle for negative comments. This should not be a concern - you look more credible if you allow some criticism. According to Bob Lutz, General Motor's vice chairman, global product development, "the key is to leave the corporate-speak behind and keep the tone conversational, open, and honest."
In the same vein, Microsoft has found blogs authored by their product managers to be very helpful. Employee blogs such as these are kind of like Open Source -- come here and help us make our product/service better, or help us co-develop. This helps Microsoft understand its customers' needs better and can help it pick up bugs sooner, which ultimately translates to the bottom line.
The ultimate goal of SMM is to establish a voice and two-way communication, turning marketing into a soft sell, rather than a hard one. SMM is clearly a viable option for reaching B-to-B and B-to-C buyers. These new online media formats help companies better address shifting preferences and opinions. Marketing campaigns will achieve even greater results because companies are now able to truly listen to and come to understand their customers' needs and wants, which is good for the bottom line.
Monday, April 23, 2007
IAB Declares War On Web Measurement Firms
DISCONTENT OVER THE STATE OF Web traffic metrics is coming to a head.
The Interactive Advertising Bureau late last week issued an open letter to comScore and Nielsen//NetRatings requesting they submit to a third-party audit of their measurement processes.
Although the IAB has spent years pushing the two major Web audience measurement services, an audit by the independent Media Rating Council is more likely now because there's a sense of urgency and greater industry support, said Randall Rothenberg, president and CEO of IAB since January. The issue of bad metrics, he said, was the resounding issue that IAB members named when he assumed the job.
"The IAB and the MRC have been asking for this since 1999 and they haven't even established a timetable," said Rothenberg, alluding to the measurement firms. "Tensions are running high as the Internet becomes the center of all marketing."
The Association of National Advertisers is now onboard supporting the audit, while Rothenberg said he expects the American Association of Advertising Agencies and other trade organizations to join the fight shortly.
The goal of the IAB and its industry members is to achieve transparency in audience counts and to revise out-of-date methodologies, according to Rothenberg, adding that "despite a multiplicity of reported discrepancies in audience measurements, comScore and NNR each has resisted numerous requests for audits by the IAB and the Media Rating Council since 1999."
To establish the source of apparent discrepancies between the audience measurements of comScore and Nielsen and those of the server logs of the IAB members, the IAB has asked that both comScore and Nielsen obtain audits of their technologies and processes by the Media Rating Council.
Media companies have often complained about large discrepancies between their own log files and panel companies' versions of their traffic.
In addition, the owners of sites serving niche audiences say their traffic can be ignored completely because panels represent a miniscule fraction of the total Web audience and do not accurately reflect all segments.
"All measurement companies that report audience metrics have a material impact on interactive marketing and decision-making," Rothenberg wrote. "Therefore, transparency into these methodologies is critical to maintaining advertisers' confidence in interactive, particularly now, as marketers allocate more budget to the platform."
Neither comScore or Nielsen responded to requests for comment regarding the IAB's letter.
Media buyers applauded IAB's efforts despite the fact that they rely on a number of other market indicators besides comScore and Nielsen.
"We need those tools to be as [accurate] as they could possibly be, so I don't know why they'd resist an audit," said Sarah Fay, president of Aegis' interactive ad agency network, Isobar, U.S.
"But," Fay added, "At the end of the day, their numbers are used more as a directional tool rather than a holy grail for our decision making."
In the letter, Rothenberg asks for a summit meeting with the IAB's Board of Directors on interactive audience measurement, along with an agreement to a near-term timetable for independent audits and accreditations of comScore's and Nielsen's companies' interactive-audience measurement processes.
The Interactive Advertising Bureau late last week issued an open letter to comScore and Nielsen//NetRatings requesting they submit to a third-party audit of their measurement processes.
Although the IAB has spent years pushing the two major Web audience measurement services, an audit by the independent Media Rating Council is more likely now because there's a sense of urgency and greater industry support, said Randall Rothenberg, president and CEO of IAB since January. The issue of bad metrics, he said, was the resounding issue that IAB members named when he assumed the job.
"The IAB and the MRC have been asking for this since 1999 and they haven't even established a timetable," said Rothenberg, alluding to the measurement firms. "Tensions are running high as the Internet becomes the center of all marketing."
The Association of National Advertisers is now onboard supporting the audit, while Rothenberg said he expects the American Association of Advertising Agencies and other trade organizations to join the fight shortly.
The goal of the IAB and its industry members is to achieve transparency in audience counts and to revise out-of-date methodologies, according to Rothenberg, adding that "despite a multiplicity of reported discrepancies in audience measurements, comScore and NNR each has resisted numerous requests for audits by the IAB and the Media Rating Council since 1999."
To establish the source of apparent discrepancies between the audience measurements of comScore and Nielsen and those of the server logs of the IAB members, the IAB has asked that both comScore and Nielsen obtain audits of their technologies and processes by the Media Rating Council.
Media companies have often complained about large discrepancies between their own log files and panel companies' versions of their traffic.
In addition, the owners of sites serving niche audiences say their traffic can be ignored completely because panels represent a miniscule fraction of the total Web audience and do not accurately reflect all segments.
"All measurement companies that report audience metrics have a material impact on interactive marketing and decision-making," Rothenberg wrote. "Therefore, transparency into these methodologies is critical to maintaining advertisers' confidence in interactive, particularly now, as marketers allocate more budget to the platform."
Neither comScore or Nielsen responded to requests for comment regarding the IAB's letter.
Media buyers applauded IAB's efforts despite the fact that they rely on a number of other market indicators besides comScore and Nielsen.
"We need those tools to be as [accurate] as they could possibly be, so I don't know why they'd resist an audit," said Sarah Fay, president of Aegis' interactive ad agency network, Isobar, U.S.
"But," Fay added, "At the end of the day, their numbers are used more as a directional tool rather than a holy grail for our decision making."
In the letter, Rothenberg asks for a summit meeting with the IAB's Board of Directors on interactive audience measurement, along with an agreement to a near-term timetable for independent audits and accreditations of comScore's and Nielsen's companies' interactive-audience measurement processes.
Thursday, April 19, 2007
Microsoft Eyes The Future of Web Development
MICROSOFT UNVEILED TWO tools that it plans to use to extend its reach into the Web 2.0 landscape -- voice-activated search service via TellMe Networks, and Silverlight, a browser plug-in set to rival Adobe's Flash. On the mobile search front, San Francisco-based TellMe Networks launched its free, voice-activated search service. The service allows users to search for local businesses by name or category, and then either hear or view the result via their mobile phone, creating an ideal platform for contextual ads. Microsoft's deal to acquire TellMe for an estimated $800 million underscores the growing importance of voice-activated applications for mobile search. Microsoft, along with other technology companies, is looking for the next area of search growth and mobile is key.
Microsoft earlier this week launched Silverlight, a plug-in for playing media files and displaying interactive Web applications. Silverlight is part of a full suite of cross-platform Web development tools slated for release in the second quarter. Both tools will run on Windows and Mac operating systems.
Given the rapid growth of rich media-enabled content and online video, any platform that's able to compete with Adobe's Flash represents an important source of revenue for the software giant. Microsoft could face hurdles in enticing both Web content developers and the media companies that use them to switch to Silverlight in lieu of Flash. Considering the software giant's previous failed attempts at cross-platform applications, Web developers, bloggers and industry executives alike are skeptical.
"Microsoft, historically, has never demonstrated a commitment to maintaining a cross-platform solution," said Adobe CEO Bruce Chizen in a statement. "I'm not sure our customers or the people that are trying to deliver that content will have [a high] degree of confidence ... if they go with Microsoft."
Though Microsoft may be hurling anti-trust insults at Google in the wake of the search giant's $3.1 billion acquisition of DoubleClick, it still has Web dominance in its sights and is moving aggressively on developing mobile applications for search.
Microsoft earlier this week launched Silverlight, a plug-in for playing media files and displaying interactive Web applications. Silverlight is part of a full suite of cross-platform Web development tools slated for release in the second quarter. Both tools will run on Windows and Mac operating systems.
Given the rapid growth of rich media-enabled content and online video, any platform that's able to compete with Adobe's Flash represents an important source of revenue for the software giant. Microsoft could face hurdles in enticing both Web content developers and the media companies that use them to switch to Silverlight in lieu of Flash. Considering the software giant's previous failed attempts at cross-platform applications, Web developers, bloggers and industry executives alike are skeptical.
"Microsoft, historically, has never demonstrated a commitment to maintaining a cross-platform solution," said Adobe CEO Bruce Chizen in a statement. "I'm not sure our customers or the people that are trying to deliver that content will have [a high] degree of confidence ... if they go with Microsoft."
Though Microsoft may be hurling anti-trust insults at Google in the wake of the search giant's $3.1 billion acquisition of DoubleClick, it still has Web dominance in its sights and is moving aggressively on developing mobile applications for search.
Tuesday, April 17, 2007
WPP Invests in Video-Sharing Community VideoEgg
LURED BY THE SWELLING POPULARITY of video-sharing communities, WPP has made a strategic investment in online video technology company VideoEgg.
Working with VideoEgg, WPP plans to explore various types of video ad-serving methods developed by the technology startup. Founded in 2005, VideoEgg manages an online video ad network--the "Eggnetwork"--along with offering clients opt-in ad technology, which stands in contrast to unpopular pre-roll video advertising.
"Our clients want to understand how to use online communities to build brands and communicate with consumers, particularly younger consumers, who are spending time in these communities," explained Mark Read, CEO of WPP Digital.
According to Rob Norman, CEO GroupM Interaction, WPP's investment arm, working with VideoEgg "provides a more focused way for our clients to participate in the growing world of social networks and user-generated content."
The Eggnetwork includes roughly 60 social networks with more than 15 million monthly unique users and as many as 20 million streams each day. Better-known clients include AOL and social network Bebo.
This is not the first time VideoEgg has worked with the agency world. Last year, Omnicom Group subsidiary Organic used VideoEgg's technology to promote Fox's "The O.C." The promotion ran on VideoEgg's ad network and destination sites including AOL, MTV and MySpace.
WPP has already shown its willingness to explore new media opportunities through investment. Earlier this year, for example, it took a 2.5% stake in mobile search and advertising firm JumpTap. Through the investment, WPP has joined with JumpTap to develop new techniques for targeting mobile users, as well as case studies for brands that are planning mobile campaigns.
Other agency investments in emerging media include WPP's backing of Spot Runner, which has created a Web-based system for planning and buying TV advertising.
Video networks seem like a logical next step for WPP. Indeed, U.S. online video ad expenditures are expected to total $775 million in 2007--up 89% from last year, according to market research firm eMarketer. To be fair, however, that number still only represents about 4% of the projected U.S. online ad spend of $19.5 billion.
Late last year, VideoEgg raised $12 million to expand the company's recently launched video ad network. The series C venture financing came from a group of investors led by Maveron. Previous investors August Capital and First Round Capital also participated in the round.
Working with VideoEgg, WPP plans to explore various types of video ad-serving methods developed by the technology startup. Founded in 2005, VideoEgg manages an online video ad network--the "Eggnetwork"--along with offering clients opt-in ad technology, which stands in contrast to unpopular pre-roll video advertising.
"Our clients want to understand how to use online communities to build brands and communicate with consumers, particularly younger consumers, who are spending time in these communities," explained Mark Read, CEO of WPP Digital.
According to Rob Norman, CEO GroupM Interaction, WPP's investment arm, working with VideoEgg "provides a more focused way for our clients to participate in the growing world of social networks and user-generated content."
The Eggnetwork includes roughly 60 social networks with more than 15 million monthly unique users and as many as 20 million streams each day. Better-known clients include AOL and social network Bebo.
This is not the first time VideoEgg has worked with the agency world. Last year, Omnicom Group subsidiary Organic used VideoEgg's technology to promote Fox's "The O.C." The promotion ran on VideoEgg's ad network and destination sites including AOL, MTV and MySpace.
WPP has already shown its willingness to explore new media opportunities through investment. Earlier this year, for example, it took a 2.5% stake in mobile search and advertising firm JumpTap. Through the investment, WPP has joined with JumpTap to develop new techniques for targeting mobile users, as well as case studies for brands that are planning mobile campaigns.
Other agency investments in emerging media include WPP's backing of Spot Runner, which has created a Web-based system for planning and buying TV advertising.
Video networks seem like a logical next step for WPP. Indeed, U.S. online video ad expenditures are expected to total $775 million in 2007--up 89% from last year, according to market research firm eMarketer. To be fair, however, that number still only represents about 4% of the projected U.S. online ad spend of $19.5 billion.
Late last year, VideoEgg raised $12 million to expand the company's recently launched video ad network. The series C venture financing came from a group of investors led by Maveron. Previous investors August Capital and First Round Capital also participated in the round.
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