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Last week, Easynet Connect commissioned a study of UK SMEs in order to try and gauge the impact that the recession has had upon online strategy in this sometimes overlooked, but important, area of UK industry.
Video and mobile search, as well as marketers' increased willingness to pay a premium for behavioral targeting and mobile search, are going to propel the search industry forward, according to the 2008 State of the Market survey of advertisers and agencies by the Search Engine Marketing Professional Organization (SEMPO).
Seventy-five percent of the 890 search engine advertisers and SEM agencies SEMPO polled say they'd pay more for clicks behaviorally targeted to in-market consumers. On average, advertisers say they'd pay 10 percent more for dayparted and demographic segmenting, and 13 percent more for behavioral search targeting.
Almost 20% of email marketers in the US have no idea on the results of their campaigns as they are neglecting to track ROI, according to a new survey.
This echoes the findings of Econsultancy's recent Email Marketing Industry Census, which found that 42% of companies surveyed didn't know what kind of return they were getting from their email marketing efforts.
It's commonly accepted in the online publishing world that internet users don't like ads. While 'hate' might be strong word, it's hard to argue that advertising is an internet user's best friend.
For publishers relying on ads to pay the bills, that usually means one thing: striking an appropriate balance. Enough ads to pay the bills, not so many ads that your users 'hate' you.
Neuromarketing. Neurometrics. In-store shopper insights. There's a lot to like about the bleeding edge of ecommerce these days, but the cold reality is this: it's time for basic internet marketing block-and-tackling strategies.
So many observers and front-line retailers are truly excited about this period of time that it is completely forgivable to race ahead with technology. Research about how consumers perceive and then buy that's coming to the fore from people like Paco Underhill is compelling, and new customer behavior data from companies like Nielsen and Microsoft is brilliant. All the in-store technology that will blend the in-store experience with the online experience needs to be quickly adopted. But let's face it. The bankruptcies and inconsistent discounts happening offline are creating a unique opportunity online. We see four very predictable ways to take advantage:
Growth forecasts for 2009 continue to be revised. Emarketer, following on the heels of the IAB's tentative outlook on 2009, has taken its internet ad spend projection down to 4.5 percent. It predicted an 8.9 percent bump last December.
And like the IAB, eMarketer analysts are hailing the projection as a good achievement in a terrible economy. That's for internet spending. On a global, multimedia level today WPP's GroupM revised U.S. spending this year to fall by 4.3 percent in 2009 to approximately $155 billion (versus the 3 percent drop predicted in December) and drop another 6.8 percent to about $144.5 billion next year.
The IAB presented its statistical and philosophical take on 2008 today, and while it tracked some surprising growth numbers it left more than a few questions unanswered for the balance of 2009.
The important numbers: total US internet advertising growth topped 10.6 percent in 2009 when offline media dropped 2.4 percent. The industry crossed the $6 billion plateau for the first time during the fourth quarter of last year, but it came on the heels of the lowest sequential quarter-to-quarter growth rate since 2002. Search was up 10.5 percent over 2007 and the much-maligned category of display ads bounced 8 percent. However, display ads contracted 4 percent in the fourth quarter.
No secret that performance-based advertising is dominating internet marketing. But brands are still trying to find the right mix for all those performance options, email, and a rapidly declining display market.
According to IDC research analyst Caroline Dangson, the display market contracted by 7 percent in Q4 of 2008, and will continue to see decreased spending until the end of this year. With this in mind, several brands are trying to find some balance for all the advertising options available.
Internet marketing analysts are finding more reasons to be cheerful. Presentations at yesterday's CPL Summit in New York supported the recent theme that conditions for a second half surge are starting to take shape.
The summit, sponsored by Pontiflex, focused on differing approaches to pay-for-performance advertising. Growth in PPC, search, and pay-per-lead are part of the reasons the second half of 2009 could be brighter than many projections that were revised downward over the past few weeks. Imran Khan, Managing Director, J.P. Morgan, singled out three more reasons for cautious optimism:
Research firm comScore released some stats on iPhone usage in the UK this week, finding that 93% of iPhone owners accessed mobile media in January, much higher than the average for smartphones.
I've come across a few other stats on mobile internet usage and mobile commerce recently, so I've rounded some of them up to coincide with the release of the latest version of our Internet Statistics Compendium.
If you're looking for some good news beyond social media, check out ecommerce. Internet Retailer’s forthcoming 2009 Top 500 Guide reports that sales for the 245 retailers reporting actual 2008 numbers have grown by 15 percent to $55.6 billion from $48.3 billion in 2007.
Before getting too excited, understand that Amazon's $19 billion in 2008 sales wrecks the curve a little bit. Without Amazon online sales, the remaining retailers increased by 8.82 percent to $36.47 billion last year from $33.52 billion in the prior year. During a year when overall retail sales are expected to decline substantially when the numbers are all in, even an 8 percent increase shows that consumers will spend money online.
Though it might seem like everyone in the world is attached to the mobile phone, a new study from the Pew Internet and American Life Project finds that six in ten people could leave home without it.
But the 39 percent who are "motivated by mobility," as the report states, break down into very different usage patterns. As marketers find their way in mobile apps and display ads, its worth noting these segments.