CHART: Advertising Tactics Trusted by Internet Users
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SUMMARY: Email has not only been spared the ax that fell heavily on most marketing budget line items, it seems to have actually benefited from the down economy. This boon wasn’t skewed by a few email-reliant sectors, it occurred in every industry participating in our benchmark survey. |
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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
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 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
No Commentary
Several comScore studies have confirmed that online campaigns drive offline sales, according to Fulgoni. In the first study, comScore took four categories, 53 brands and 200 of the most trafficked sites. The company looked at people exposed to display advertising and what they did in the month following. Findings reveal that 18% searched on the brand advertised and 29% went to the advertisers’ sites. Consumers who were exposed to the display advertising spent 55% more time than the average visitors to these sites the next month. The rise in time spent is matched by a similar increase in page views — about 51%.
Then, comScore analyzed the impact that online campaigns have on retail sales by matching the name and the address of consumers to retail loyalty card databases. The supermarket Kroger, for example, has issued about 60 million loyalty cards, which provide a massive data set to understand the degree that online search and display campaigns drive retail sales. The findings suggest a lift that is five times stronger when people are exposed to search ads alone, compared with display. Search alone produces an 82% lift, compared with display at 16%, and 119% when search and display are combined. About 82% of online ad campaigns measured by comScore have generated an average lift of 22% in CPG brand sales in retail stores.
Read more at www.mediapost.com
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FetchBack Thursday launched a new analytics suite that offers insights into the conversion cycle for e-tail. Research during the development of the tools revealed that nearly half of consumers return to retail sites quickly after being served retargeting ads. They have found that in online electronics, retail, apparel, home and health, that on average, 42.9% of consumers returned to the retail site that generated the FetchBack-served retargeting ad — and that was within the first hour of seeing the ad.
FetchBack’s President and CEO says, “Knowing how quickly a prospect returns to an advertiser’s site after viewing a retargeting ad, or how many impressions each prospect receives before converting is important information that allows advertisers to optimize their campaign.”
Read more at www.mediapost.com
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According to the latest Nielsen Global Online Consumer Survey of over 25,000 Internet consumers from 50 countries, recommendations from personal acquaintances or opinions posted by consumers online are the most trusted forms of advertising worldwide. 90% of consumers surveyed said that they trust recommendations from people they know, while 70% trusted consumer opinions posted online.
Forms of Advertising in Which Consumers Trust “Somewhat” or “Completely” (April, 2009)
Advertising
Percent of Respondents Trusting
Recommendations from people known
90%
Consumer opinions posted online
70%
Brand websites
70%
Editorial content (e.g. newspaper article)
69%
Brand sponsorships
64%
TV
62%
Newspaper
61%
Magazines
59%
Billboards / outdoor advertising
55%
Radio
55%
Emails signed up for
54%
Ads before movies
52%
Search engine results ads
41%
Online video ads
37%
Online banner ads
33%
Text ads on mobile phones
24%
Read more at www.mediapost.com Source: Nielsen Global Online Consumer Survey, April 2009
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