Online Retail Spending Reaches $39 Billion
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The “2010 Digital Marketing Outlook” report found that 81% of the brand executives surveyed expected an increase in digital projects in 2010, and one-half will be moving dollars from traditional to digital budgets. Further, more than three-quarters think the current economy will push more allocations to digital. |
Senior marketers reported that social networks and applications were their biggest priority for 2010, followed closely by digital infrastructure. While social media marketing looks set to stay top of mind, a majority of respondents considered a range of digital activities at least “important,” with only games failing to inspire widespread interest.
The study results also indicate that consumers frequently talk about, recommend or review products on social networks:
46% say they would talk about or recommend a product on Facebook.
44% of Twitter users have recommended a product.
36% of YouTube users have gone to an online retailer or ecommerce site after learning about a brand on a social network site. Read more at www.marketingcharts.com
Read more at www.mediapost.com
Year-over-Year% Change in Online Advertising Spend by Industry (U.S., August 2009)
Estimated $ on Top Social Network Sites
YOY% Growth
Industry
Aug-08
Aug-09
On Social Networks
On All Sites
Entertainment
$1,097,700
$10,012,800
812%
40%
Travel
$473,700
$2,198,200
364%
-11%
Business to Business
$683,400
$1,941,700
184%
-8%
Automotive
$1,110,200
$3,085,800
178%
-26%
Health
$1,131,500
$2,754,900
143%
8%
Web Media
$11,231,800
$26,855,700
139%
30%
Software
$526,400
$1,202,500
128%
-29%
Financial Services
$3,233,900
$6,415,900
98%
-10%
Public Services
$6,836,500
$13,203,100
93%
13%
Telecommunications
$12,449,500
$23,550,300
89%
-1%
Consumer Goods
$1,913,400
$3,349,200
75%
8%
Hardware & Electronics
$654,000
$1,022,900
56%
-47%
Retail Goods & Services
$8,101,400
$12,556,800
55%
-12%
Source: Nielsen AdRelevance
From a study conducted by Penn State
Companies are also benefiting from Twitter, where 20 percent of the tweets contain requests for product information or responses to the requests, according to Jim Jansen, associate professor of information science and technology in the College of Information Sciences and Technology (IST) at Penn State.
“People are using tweets to express their reaction, both positive and negative, as they engage with these products and services,” said Jansen. “Tweets are about as close as one can get to the customer point of purchase for products and services.”
he team looked for tweets mentioning a brand and why the brand was mentioned — to inform others, express a view on the brand or something else — and found that people were using tweets to connect with the products.
About 20 percent of the tweets contained product information in the form of asking and providing, thus giving companies a “rich source” of information concerning issues and questions that customers have regarding their products.Read more at live.psu.edu
Industries included are Travel, Technology, Automotive, Health, News, Moms, Affluentials, Sports, Entertainment, Real Estate, Business, Fashion, Food. All advertising costs are CPM…
The publishers that charge advertisers the highest rates are those in the travel, tech and automotive verticals, according to Adify, which buys media on 12,000 publishers for 200 ad networks.
Below, see a chart from Adify that shows what rate — CPM, or cost per 1,000 impressions — publishers from 13 different verticals have charged advertisers over the past three quarters.
Travel leads with a $19.89 CPM; tech is second at $16.01; food is last at $3.63.
Read more at www.businessinsider.com
According to Heather Dougherty, Director, Research at Hitwise, Bing Shopping, in the 8 weeks since launch, grew its market share of comparison shopping 169% among key providers in the category.
Weekly Market Share of Visits to Comparison Shopping Tools (% of Visits in Category & Change in 8 Weeks from Bing entry)
Share of Visits
Shopping Tools
WkEnd 6/6/09
WkEnd 8/8/09
% Change
Yahoo! Shopping
24.07
22.7%
-5%
Bizrate.com
15.96
15.57
-2
Shopzilla.com
13.95
13.23
-5
Bing.com/shopping
4.40
10.86
169
Nextag.com
9.20
10.34
12
Bestprice.com
11.79
8.41
-29
Pronto.com
3.41
4.55
33
Become.com
4.05
3.67
-9
Shop.com
4.93
3.35
-32
Pricegrabber.com
3.96
2.96
-25
Read more at www.mediapost.com Source: Hitwise, August 2009
According to new research from PQ Media, spending on word-of-mouth marketing rose 14.2% to $1.54 billion in 2008, despite the worst economic recession in 70 years. However, WoM spending is on pace to grow another 10.2% this year, placing it among the fastest growing advertising and marketing segments.
PQ Media defines WoM marketing as an alternative marketing strategy which encourages consumers to dialogue about products and services through various online and offline tactics, often facilitated by brand ambassadors.
Industry spending increased at a compound annual growth rate of 37.6% from 2003 to 2008, as the rise in popularity of blogs, social networks and online communities led brands to shift dollars to WoM as part of integrated media solutions in their quest to engage more elusive consumers.
Total spending on WoM is expected to increase at a CAGR of 14.5% from 2008 to 2013. Both major sectors - content & services and ancillary products - will post strong gains and contribute to overall growth. Ancillary products spending will increase faster than content & services spending primarily because the market is smaller with more growth potential.
Patrick Quinn, President and CEO of PQ Media, notes that “The most influential marketer in a consumer’s life is someone they know and trust, such as a family member, friend or colleague…”
% Share of WoM Spending by Marketers in 2008
Brand Market
Share of WoM Spend
Consumer Goods Products
17.4%
Food & Drink
12.2%
Finance & B2B Services
9.5%
Electronics & Telecom
9.4%
Retail
9.2%
Auto & Transportation
8.6%
Entertainment & Media
7.5%
Apparel & Accessories
6.2%
Health Care & Pharma
4.1%
Sports & Gaming
3.6%
Travel & Leisure
3.3%
Home & Garden
3.2%
Other
5.8%
Total
100.0%
Read more at www.mediapost.com Source: PQ Media, July 2009
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