US Internet advertising revenues in January-June 2008 were $11.5 bln, setting yet another new half-year record that represents a 15.2% increase over the first half of 2007. Q2 2008 was up 12.8% over Q2 2007 and showed a slight decline of 0.3% from Q1 2008. Search revenues totaled almost $5.1 bln for the first six months of 2008, up 24% from the $4.1 bln for the same period in 2007. Display-related advertising totaled close to $3.8 bln for first six months of 2008, compared to the $3.2 bln reported for the same period in 2007, showing about a 19% increase. Display-related advertising includes Display Banner ads, Rich Media, Digital Video, and Sponsorship, IAB says.
Kearsarge Global Advisors says that so far in 2008, $20,826,032 have been spent on 55,019 spots in 33 states, along with minimal national cable placements. Year-to-date spending increased more than 100% in the first three weeks of September. From September 1st through the 23rd, campaigns spent $10,872,849, as compared to $9,953,183 in the prior eight months combined. KGA initially forecast that a minimum of $66 mln will be spent on negative ads related to issues such as outsourcing, tax breaks, trade with China, NAFTA/CAFTA, foreign ownership, and “unfair” trade policies.
|Industry||Estimated Spend Q2 2007||Estimated Spend Q2 2008||% Change|
|Web Media||$903,731,700||$ 895,871,500||-1%|
|Retail Goods & Services||$657,760,600||$611,790,900||-7%|
|Hardware & Electronics||$123,106,500||$146,290,800||19%|
|Publisher||Display ads, mln.||Share of Display
|Health – Information||1,556||100.0%||53,556||29.0|
|Advertiser||Pageviews, mln.||Share of Display Ads||Unique Visitors, 000|
|University of Phoenix||4,722||1.4||120,475|
|United Online, Inc||3,929||1.2||136,329|
|Publisher Site||Ad impressions, mln.||Share of Display Ads||Visitors, 000|
|Fox Interactive Media||52,288||15.9||83,714|
|Advertiser||Impressions, 000||Share Voice||Visitors, 000||Frequency|
|L.L. Bean, Inc.||205,590||10.3%||39,781||5.2|
|Levi Strauss & Co.||72,259||3.6%||18,825||3.8|
In Q2 2008, 74% of all mail received was spam. In Q2 2008, Turkey became the country with most zombie computers (11% of the global total), followed by Brazil (8.4%) and Russia (7.4%). The USA, which in the Q1 2008 accounted for 5% of all zombies, is now in ninth place with just 4.3% of the total. Google Adwords has been at the center of one of the most notable attacks over the last quarter, PandaLabs says. This Google service had been used previously to launch phishing attacks and the trend continues. This type of attack uses social engineering to trick users into revealing confidential details (bank account numbers, passwords, etc.).
Mindshare Interaction published a list of top advertisers in Internet sector in Russia Federation, compiling the data for the first half of 2008. Ford Motor Co led the way with $4.6 mln spending, followed by Russian mobile operators MTS and Megafon, then by US automaker General Motors, another mobile operator Vympelkom OAO, automakers PSA Peugeot Citroen, Nissan, electronics conglomerate Samsung, Honda and Procter & Gamble. Total Internet spending by top 10 advertisers in .ru sector of the Internet spent $20 mln total in the first 6 months of 2008.
The use of ad networks surged from 5% of total ad impressions sold in 2006 to 30% in 2007, according to Interactive Advertising Bureau. As online publishers continue to experience growth rates of 20-30% in ad revenue, the race to create new advertising opportunities has left publishers with an excess of inventory which they are selling through ad networks at up to 90% discounts versus direct sales rates. The study finds the trend particularly foreboding for branded online publishers who traditionally earn between $10-20 CPM (the industry term for the cost per 1,000 ad impressions advertisers pay) and therefore risk severe price erosion. Online publisher revenues grew by a healthy 32% in 2007 versus 2006, yet ad network revenues grew more rapidly (in excess of 50%), as marketers boosted online spending. High demand for premium video inventory resulted in CPMs 2-3 times greater than display ads on average.
|Expanded Search Entity||May-08||Jun-08||Growth, MTM|
|Total Expanded Search||15,463||16,668||8%|
|AOL Search Network||456||430||-6%|
|MyWebSearch.com/ All Other||168||165||-2%|
|Fox Interactive Media||402||457||14%|
Worldwide spending on Internet advertising will total $65.2 bln in 2008, which represents nearly 10% of all ad spending across all media. With IDC’s Digital Marketplace Model and Forecast projecting 15-20% annual growth throughout the forecast period, this share will reach 13.6% by 2011 as Internet ad spending grows to $106.6 bln worldwide. The United States will lead the world in both total advertising spending and online ad spending throughout the forecast period with expenditures of more than $265 bln and $45 bln respectively in 2011, according to IDC.
Central and Eastern Europe (CEE) and the Middle East and Africa (MEA) will experience the fastest growth in Internet ad spending during the forecast period with a CAGR of 42.1% for CEE and 29.8% for MEA. Online advertising in Asia/Pacific (excluding Japan) will also experience dramatic growth with a 2007-2011 CAGR of 25.4%. Internet advertising will make the greatest gains relative to total ad spending in Western Europe, where online ad spending will capture 18.2% of total ad spending in 2011. This compares to a 16.3% share for online ad spending in Japan and 14.6% in the United States. More than $5 bln will be spent worldwide in 2008 in each of the top four categories of online ads – adult content and gambling, information, electronics, and computing. These will continue to be the leading categories in 2011, according to IDC.
Of the $1.5 bln that marketers are expected to spend on advertising tied to the summer Olympic games, $100 mln will go towards online, according to Lehman Brothers.
|Rank||Property||Audience, 000||Reach %|
|3||Google Ad Network||154,419||81%|
|8||YuMe Video Network||134,864||71%|
|10||Casale Media Network||128,569||68%|
|11||adconion media group||125,339||66%|
|15||AOL Media Network||110,841||58%|
|16||24/7 Real Media||109,135||57%|
|19||ADSDAQ by ContextWeb||98,951||52%|
|28||Ybrant – Oridian – ADdynami||71,554||38%|
|29||NNN Total Newspapers: U.S.||67,530||36%|
|30||Gorilla Nation Media||66,866||35%|
|33||MSN.COM Home Page||56,741||30%|
|36||IAC Ad Solutions||53,385||28%|
|42||NNN Top 25||44,926||24%|
|44||Real Cities Network||44,577||23%|
|45||IB Local Network||40,506||21%|
|48||EBAY.COM Home Page||37,061||20%|
|49||The Nabbr Network||37,039||20%|
IMMI has found that up to 20% of episodic content viewing occurs online, depending on the genre of the content and the amount of time the show has been on the air. The most common observation are panelists who first watch a television show live then watch at least one episode later online (41%). The second largest group for this particular network were those who first watch a show delayed then online (31%) at a later date.
Comparing online viewers to live viewers we see that the two largest groups are 25 to 44 year olds making up 58.4% of online viewers. While the common belief is 13 to 24 year olds are the ones consuming online episodic content, we find the exact opposite is the case with only 19.1% of 13-24 year olds viewing primetime shows online.
Looking at gender we see there is a slight shift with females (55%) more inclined to watch primetime episodes online than males (45%). After investigating live primetime viewing we see an equal distribution of males to females.
Primetime network shows are primarily consumed online by Caucasians (76.8%), with Hispanics being the second largest group at 10.5%. Caucasians are 21% more likely to watch episodes online. African Americans are less than half as likely to watch episodes online. There is no noticeable difference among Asians.
When analyzed viewership by income groups we see that online viewers are more affluent than live network primetime viewers. For those who earn $40,000 a year or less are 75% more likely to watch a primetime network show live than online. Those households that earn $80,000 a year or more are 56% more likely to watch a network show online.
Worldwide spending on Internet advertising will total 65.2 bln USD in 2008, which is nearly 10% of all ad spending across all media, according to IDC. This share is expected to reach 13.6% by 2011 as Internet ad spending grows to $106.6 bln worldwide.
|Advertiser||Ad views, 000||Share of ads||Unique ad viewers, 000||Frequency|
For every new $1 spent on paid search in Q2 2008 versus Q2 2007, $1.10 went to Google. Yahoo lost $0.09, and Microsoft lost $0.01. Advertisers are putting all of their new search dollars into Google, and pulling money out of Yahoo Search and Microsoft Live Search, Efficient Frontier says. Google maintained its 77.4% share of US search marketing dollars, while Yahoo captured 17.8% of spending and Microsoft Live Search maintained its 4.8% share.
Total magazine rate-card-reported advertising revenue for the first half of 2008 closed at $11,554,569,406, posting a -3.1% decline against the previous year, according to Publishers Information Bureau. Ad pages during Q1 2008 totaled 108,924.13, at -7.4% compared to January through June, 2007. Total PIB revenue for Q2 2008 closed at $6,297,123,700, marking a decline of -4.7% versus Q2 2007. Ad pages totaled 58,744.77, at -8.2% against Q2 2007.
Consumers spend 15% of their time on the Internet, while 9% of advertising budgets are on the Web, ZenithOptimedia said. Rising Internet use will also drive online ad spending, with 19% of the world’s population having Web access in 2008, compared with 17% 2007. Internet ad spending will overtake magazines in 2010. Radio will account for about 9% of advertising budgets 2008.
|Rank||Property||Visitors, 000||Reach %|
|Total Internet : Total Audience||190,858||100.0|
|4||Google Ad Network||158,514||83%|
|10||Casale Media Network||129,752||68%|
|11||adconion media group||124,760||65%|
|15||24/7 Real Media||113,626||60%|
|16||AOL Media Network||111,395||58%|
|18||ADSDAQ by ContextWeb||104,152||55%|
|19||Tremor Media – Media Partners||103,653||54%|
|28||NNN Total Newspapers: U.S.||71,398||37%|
|31||Gorilla Nation Media||66,152||35%|
|33||Ybrant Digital- AdDynamix/Oridian||65,642||34%|
|35||IAC Ad Solutions – Media Partners||58,157||30%|
|36||MSN.com Home Page||57,169||30%|
|40||NNN Top 25||48,660||25%|
|41||Real Cities Network||48,213||25%|
|42||IB Local Network||47,668||25%|
|44||YuMe Video Network||46,823||25%|
|49||The Nabbr Network||40,512||21%|
|Category||Traffic from search engines||Growth of search engine traffic||Traffic from Google||Growth of traffic from Google|
|Health and Medical||45.76%||3%||30.86%||5%|
|Shopping and Classifieds||25.48%||2%||16.84%||8%|
|News and Media||21.70%||7%||14.53%||10%|
|Business and Finance||18.15%||14%||11.73%||22%|
Online ad spending is expected to increase just a little less than 20% 2008, from $19.9 bln in 2007 to $23.8 bln. By 2013, Jupiter expects total online ad spending to hit $43.4 bln.
ZenithOptimedia says global internet ad spend will grow 26.7% and break through the 10% share barrier in 2008. By 2010 online ads will attract 13.6% of all advertising. ZenithOptimedia sees worldwide online ad spend of $52.2 bln in 2008, $64 bln in 2009 and $78.1 bln in 2010.