30.9% of PVR owners skipped or fast forwarded all commercials, and a further 21.7% indicated they did this to most commercials. This means that if 30% of homes have a PVR by the end of the decade and 50% of PVR users are skipping all or most commercials, TV advertising will become less effective for most advertisers. Saying that, the Myers Group survey did also indicate that PVR users skip commercials, but 15.3% will stop for selected ones.
IDC: Online advertising is booming in Asia
Online advertising revenue in Asia-Pacific is expected to rise by a compound growth rate of about 40% in the next five years, according to research firm International Data Corp (IDC). It expects money spent on internet advertising to reach US$1.62 billion by 2007, up from $304.3 million last year.
Nielsen on pop-ups
Pop-ups’ share of the online media pie is more than double what it was a year ago. Nielsen//NetRatings found they accounted for 7.4% of all online ad impressions in Q3 2003, up from 3.0% for the same period last year.
IAB on advertising ROI
According to a recent study from the IAB and Comscore, the average click-through rates for sponsored ads related to travel and finance were 18.3% for April and May of 2003. That compares with click-through rates of 4.3% for ordinary search results for related terms. Sponsored ads also drove more sales than did ordinary search links, according to the research. About 1.4% of the people who clicked on sponsored listings became customers of the advertisers. In comparison, about 0.6% of the people who clicked on ordinary search results made a purchase.
Online advertising formats have historically faced problems with declining response rates over time. Banner ads debuted with click-through rates above 50%, according to Nielsen/NetRatings research analyst Marc Ryan, but faded during their heyday to about 2% – a respectable performance for direct response ads. Now banners get fewer than 5 responses for every 1,000 advertisements shown, a response rate of about 0.5%.
PWC: US online advertising up 1.7% in Q2 2003
Online advertising spending in the US totaled $1.66 billion in the second quarter of 2003, rising 1.7% from the previous quarter. The report also notes that total online ad spending in Q2 of this year rose by 13.9% from Q2 2002.
Best ad performance in the US by states
Advertising.com, Inc. today released new findings from its Optigence research platform indicating that certain geographic areas are more responsive to interactive advertising than others.
Best CTR: New Mexico, West Virginia, Arkansas, Montana, Wyoming
Best conversion ratio: Vermont, Michigan, Alaska, Ohio, Nevada
Everyone hates pop-ups
In July, Nielsen//NetRatings reported Web publishers served 7.3 billion pop-up ad impressions. In July 2002, iVillage repudiated pop-up ads after a survey found 92.5 percent of its users saying pop-up ads were the most frustrating part of their experience on the site. Doug McFarland, Advertising.com executive vice president and general manager of publisher services, cited a survey the company did in May that found pop-up ads had a click-through rate 13 times higher than regular banner ads.
August 2003 Ad Demand Index
How Ad Demand Has Changed Relative To The Same Point A Year Ago
Increased Stayed The Same Decreased Online 56% 33% 11% Cable 53% 35% 13% Radio 41% 45% 15% Outdoor 35% 45% 19% Magazines 31% 47% 20% Network TV 31% 47% 22% Newspapers 27% 45% 27% All Media 39% 43% 18%