BIA/Kelsey: Local Digital Advertising Outpacing Overall Ad Market

Inside Radio 11-3-11

· The overall local media market will grow slowly during the next five years, at a 1.7% annual growth rate, according to an updated forecast to be released next week by BIA/Kelsey. Local ad dollars will increase from $135.9 billion this year to $149.4 billion in 2015. Digital will drive a majority of that growth as more marketers shift their dollars to interactive platforms. “Digital solutions are driving growth across the advertising industry,” senior VP/PD of interactive local media Matt Booth says.

· In 2010, 14.6% of total local ad dollars went to digital and 85.4% to traditional. But by 2015, the numbers will have changed significantly, with 25.4% going to digital (or about $37.9 billion) and 74.6% to traditional. “The mix is shifting to digital channels,” Booth says. “It’s something we think will accelerate and it’s a trend we’re seeing all round the globe.”

Read More: www.insideradio.com

Publishers Optimistic About Online Video Ad Growth

eMarketer 11-4-11

· The online advertising industry has its eyes on online video, the fastest-growing digital ad format. eMarketer expects online video ad spending to reach $2.2 billion by year’s end, up 52.1% from 2010. By 2015, it will account for $7.1 billion in online ad spending.

· More than three-quarters of US online publishers expect online video advertising—in some form—to be a top revenue generator for 2012.

· Most publishers (63%) are betting on in-stream video ads, such as pre-roll or mid-roll units, to generate the most revenue. Nine percent said in-banner video would bring in the most ad dollars.

· US online publishers plan to raise their average cost per impression (CPM) in the coming quarter; therefore, cost will be a continued factor for online video advertisers. Sixty-three percent anticipate CPM hikes of 15% or more; only 7% of publishers expect no increase.

Read More: http://www.emarketer.com/Article.aspx?R=1008674

SQAD-Inside Radio CPM Tracker: Smaller Gains, But CPMs Still Climb Higher

Inside Radio 11-2-11

· The size of price increases paid by advertisers shrunk last month, a factor largely driven by year-over-year comps against big increases seen a year ago. The SQAD-Inside Radio CPM Tracker shows the average October spot buy was placed at CPMs 4% higher than one year earlier. It’s the smallest increase of 2011— and was half the average 8% CPM gain posted in September and under the 9% increase in both August and July.

· Other factors also appear at work. In October 2010, political spending pushed CPMs up by as much as 15%, making for difficult year-to-year comparisons.

Read More: www.insideradio.com

Ericsson Forecasts 5b Mobile Broadband Subscribers, Data Traffic To Grow Tenfold, By 2016

TechCrunch by Robin Wauters 11-7-11

· By 2016, Ericsson also predicts mobile broadband subscriptions to exceed 5 billion in its latest Traffic and Market Data report. The company earlier predicted that number to surpass 1 billion in 2011, but now forecasts 900 million subscribers by year’s end.

· According to the report, mobile data traffic will double this year, mainly due to surging sales of smartphones, tablets and other devices. Total smartphone traffic is expected to triple during 2011. Users living on less than 1 percent of the earth’s land area are expected to generate around 60 percent of mobile traffic by 2016, the company says.

Read More: http://techcrunch.com/2011/11/07/ericsson-forecasts-5-billion-mobile-broadband-subscribers-data-traffic-to-grow-tenfold-by-2016/

Social, Mobile Ramp Up Ad Dollars, Interactive On Rise

MediaPost by Mark Walsh 11-9-11

· The Publicis-owned agency said client advertising dollars directed to each of those areas ramped up significantly last year, with its overall billings up 20% in 2010 and expected to increase 25% this year. Emerging segments still represents a small portion of paid media budgets -- exchanges account for less than 10%, and social and mobile 4% apiece last year.

· Search and display still command the lion’s share of spending, at 36% and 43%, respectively.

· The rise of programmatic audience-buying via exchanges as a mainstream way to buy and sell digital media has been one of the key industry developments since last year. Razorfish expects client spending will grow again 60% this year. “That’s a trend we’ve expected, but it just speaks to the maturation of that business,” said Jeff Lanctot, chief media officer at Razorfish.

· Research by Razorfish and Yahoo included in the report, for instance, found that nearly 80% of survey participants are busy on their mobile devices while watching TV at home. Within that group, 15% will stay on their device for the entirety of a show. Some 38% actively search for more information about content or ads they see on TV.

Read More: http://www.mediapost.com/publications/article/161963/social-mobile-ramp-up-ad-dollars-interactive-on.html?edition=40075

Drivers To Hear More Pandora Ads Than Desktop Listeners

Inside Radio 11-9-11

· Broadcast radio faces growing competition from Pandora Media, which has ramped up its effort to gain distribution through in-car entertainment services. But users who tune in while driving may notice something different: more commercials. The streaming music service says it will compensate for lack of on-player display ads by serving more in-stream audio. “We would expect that consumers will take a little bit more audio load in the automobile because they know they’re not getting display ads,” CFO Steve Cakebread said.

· He told the Wells Fargo media conference yesterday in New York that the commercial load will be “a little bit heavier” than the webcaster’s typical three :15-second spots per hour, although he didn’t say by how much. “Compared to your favorite radio station that’s doing 12 to 15 minutes an hour, the audio loads will never get that high for Pandora,” Cakebread pledged.

Read More: www.insideradio.com

Popularity Of Net-Connected Devices To Drive Demand For Content, Says Gartner

RAIN by Paul Maloney 11-9-11

· As consumer spending on CDs and LPs is expected to slide from $15 billion to about $10 billion 2010-2015, Gartner forecasts end-user revenue for online music sales and services will grow more than 31% over that same time span: from $5.9 billion in 2010 to $7.7 billion in 2015. Subscription services (e.g. Spotify, MOG, Rdio, and Pandora) alone will take in $532.1 million this year, growing to $808 million next year.

· Online music revenue from end users will grow more than 31% by the end of the forecast period: from $5.9 billion in 2010 to $7.7 billion in 2015. By comparison, consumer spending on physical music (CDs and LPs) is expected to slide from around $15 billion in 2010 to around $10 billion in 2015.

· Online music subscription services, such as Spotify, will be the main growth sector in this market, showing fivefold growth from 2010 to 2015. A la carte sales will drive the bulk of overall revenue.

· The highest growth rates will be in regions such as Latin America and the Middle East and Africa, which have not historically been strong in paying for tracks or albums from online services or stores (although perhaps stronger in paid-for ringtones from their service providers).

Full Report: http://www.gartner.com/resources/217200/217238/media_ias_online_music_forec_217238.pdf

Print Goes Mobile

MediaPost by Jack Loechner 11-16-11

· 85% of the magazines and newspapers in the U.S. and Canada currently offer mobile content for e-readers, smartphones or tablets. Just 76% of magazines and newspapers offered mobile content last year. “Going Mobile: How Publishers Are Maturing and Monetizing Their Offerings,” found that 88% of newspapers, 83% of consumer magazines and 79% of business publications offered mobile content.

· 83% of magazines share their content on mobile devices, up 26% from last year. Business publications have also seen a large jump in mobile distribution. In 2010, 58% of b-to-b survey respondents said they had mobile content. This year, that number increased to 79%. Newspapers show the highest percentage of penetration.

Read More: http://www.mediapost.com/publications/article/162288/print-goes-mobile.html

Big Gains Projected For In-Stream Audio Ad Sales In 2012

Inside Radio 11-16-11

· Even if Borrell Associates projections about radio revenue are a little off, the industry will have a banner growth year selling digital advertising. The firm forecasts radio’s total online ad revenue will jump 85% to $539.4 million in 2012. But the industry’s share of total local online spending will remain small: climbing from an estimated 1.9% this year to 2.9%. Borrell expects digital audio advertising to be bigger than on-site display ads for the first time in 2012.

· “We’re going to start seeing streaming audio as a local online advertising format that becomes a force to reckon with,” Borrell EVP Peter Conti says. The firm predicts online audio ads, which this year will capture about 1.7% of total online spending, to more than double to take 3.2% of dollars next year.

Read More: www.insideradio.com

Follow The Dollars To Mobile, Borrell Advises

Inside Radio 11-16-11

· While traditional local online ad spending will grow double-digits again next year, the real sizzle to this advertising steak is now found in mobile spending. Borrell Associates forecasts 88% of all local online advertising will [be] viewed on tablets, smartphones or GPS-enabled laptops by 2016. “In the next couple of years the explosion of dollars will be in mobile, and radio needs to be prepared to capture that,” Borrell EVP Peter Conti says. The firm’s forecast calls for local mobile advertising to balloon by 66% in 2012 to $4.3 billion.

Read More: www.insideradio.com

Facebook Users Are Slow to ‘Like’ Brands and Retailers

eMarketer 11-18-11

· Branded Facebook pages do not fare as well as other types of content, though, according to a Crowd Science survey. They had the lowest number of “likes” (9% of users) compared to wall posts, photos and comments (16%) and videos (12%). The most popular reasons for “liking” a page tied between showing support and enjoying what was being said, both at 28%. Neither are attributes most often associated with brands.

· Among the online buyers who had “liked” a retailer’s Facebook page, the most important feature was the presence of sales and promo codes...

· It is not easy for brands to compete with friends and family on Facebook since corporations are essentially faceless.

Read More: http://www.emarketer.com/Article.aspx?R=1008700&ecid=a6506033675d47f881651943c21c5ed4

Mobile Marketers Demand Better Ad Performance, Standards

MediaPost by Laurie Sullivan 11-17-11

· It's still far too difficult to buy advertising online, and about 90% of ads on publisher sites never appear on a part of the screen that consumers view without scrolling down the page, said Greg Stuart, Global CEO, Mobile Marketing Association, during opening remarks at the industry conference in Los Angeles.

· Ciangiulli said those who want to buy inventory targeting consumers between the ages of 18 and 24 must purchase the inventory from multiple mobile ad networks to try and reach an audience. If they want to advertise through mobile operators, the advertiser needs to buy inventory through each operator in a market.

Read More: http://www.mediapost.com/publications/article/162628/mobile-marketers-demand-better-ad-performance-sta.html?edition=40361

Pandora Brings In Record Q3 On Lower Profits

RBR 11-22-11

· Its fiscal Q3 2012 (yes, they march to the beat of a different calendar) revenue grew 99% YOY; quarterly total listener hours of 2.1 billion grew 104% YOY; and its 66% share of U.S. Internet radio grew from 53% in Q3 ’11. Total revenues for the quarter rose to $75.01 million from $37.69 million in the prior year quarter. However, Pandora's Q3 profit fell 39% amid increased expenses for content acquisition. Content acquisition costs more than doubled to $37.6 million during the quarter.

· For Q3, ad revenue was $66.0 million, a 102% YOY increase. Subscription and other revenue was $9.0 million, an 80% YOY increase.

· For Q4, revenue is expected to be in the range of $80 million to $84 million. Non-GAAP net loss per common share is expected to be between $0.04 and $0.02. Analysts expect the company to report a loss of $0.02 per share on revenues of $82.25 million for Q4.

· RBR-TVBR observation: Content acquisition costs more than doubled during the quarter. The yin-yang is the more users it attracts, the more it must pay labels in licensing fees. But the more streaming, the more ad inventory they have available to sell.

Read More: www.rbr.com/radio/pandora-brings-in-record-q3-on-lower-profits-audio.html

Mobile Advertising Exploding

MediaPost by Jack Loechner 11-23-11

· According to the Q3 S.M.A.R.T.™ report, an in-depth look at the mobile advertising landscape, brands are spending more, and trying a variety of things to drive campaign success. Local market targeting grew 50% quarter-over-quarter, and certain “post-click” options like the ability to watch video, grew 78% quarter-over-quarter. In addition, 6 different verticals grew over 140% year-over-year.

· Finance was the top US advertising vertical on our network. Entertainment and Retail/Restaurants were in the second and third spots, respectively.

· Entertainment was the top International advertising vertical on our network.

· Campaigns that allowed consumers to view a map grew 27% quarter-over-quarter. As advertisers continued to reach local consumers, the “view map” option was used to drive them into physical locations.

· When consumers used their mobile phones while shopping in Q3, the top activity was to search for particular items to try and find a better price. The second most popular activity was to read product reviews.

· mCommerce campaigns experienced a 17% growth quarter-over-quarter.

Read More: http://www.mediapost.com/publications/article/162719/mobile-advertising-exploding.html#reply