12.02.2010

Media Update - December 2010

NAA: Newspapers’ Ad Declines Slim, As Online Struggles To Maintain Growth

Compared to the past three years, newspapers in Q3 had its first positive ad revenue news in quite awhile. The latest figures from the Newspaper Association of America shows that total print and online revenues fell by 5.39 percent in the previous quarter, a slight improvement over the 5.55 percent drop in Q2. To put it in further context, this was the smallest drop the industry has reported since Q107, when total print and online ad dollars slipped 4.8 percent. Online meanwhile was up in double digits, but not as high as in Q2.

Still, by itself, online ad revenues grew 10.7 percent in Q3, which not as strong as the 13.9 percent in Q2. Even print saw some improvement in Q3, falling 7.11 percent in Q3 compared to 7.62 percent in Q2.



Google says it plans to do more to fight online piracy

Google, which has been dogged by complaints about pirated content on YouTube and with its new television initiative, seems to be appealing to Hollywood with some major changes to the way it deals with copyright infringement on its search engine over the next several months, making it tougher for websites that flaunt the law and making it harder to find pirated content, it said Thursday.

"There are more than 1 trillion unique URLs on the Web and more than 35 hours of video uploaded to YouTube every minute," Kent Walker, Google's general counsel, said in a blog post. "It's some pretty fantastic stuff -- content that makes us think, laugh, and learn new things. Services we couldn't have imagined ten years ago -- iTunes, NetFlix, YouTube, and many others --- help us access this content and let traditional and emerging creators profit from and share their work with the world."

But along with that content are "bad apples who use the Internet to infringe copyright," Walker wrote.
So Google is looking to respond to those "bad apples" that violate the Digital Millenium Copyright Act, the law that protects sites like Google if they remove infringing content when notified, faster and more efficiently.

The details are still somewhat vague, but Walker said Google will respond to "reliable" takedown requests within 24 hours and build tools to make it easier for copyright owners to submit the requests, improve tools for those who think their content was improperly removed and make it possible to search takedown requests. Google also said it will also block terms closely associated with piracy from appearing in Autocomplete, the search engine's tool that fills in the query box as you type, and prevent violators from using its AdSense product.

In what could be a major step for content creators, Google will experiment with making sites with legitimate content easier to find than sites with pirated content. That could be a game changer if Google makes pirated content hard to find on its search engine, the world's largest.


Carbon Ad Network Launches With Niche Circle of Design Sites

Carbon Ads announces the launch of its Design Circle, a collection of hand-picked publishers serving the design industry. With over 30 niche sites serving over 17 million ad impressions a month, the Design Circle speaks to a wide range of creatives: advertising and marketing professionals, print and Web designers, freelancers, creative directors and Web entrepreneurs.

Frustrated with traditional online ad services, the Carbon team, led by Fuel Brand Inc’s Joshua Smibert and Adelle Charles, hand-pick each and every publisher and advertiser, improving the advertising experience for consumers by only allowing relevant, targeted advertising of interest to the network’s readership.

Carbon advertisers, including brands such as Behance, Media Temple, Evernote and Shutterstock, take advantage of the single ad spot that Carbon requires of its publishers. These premium spots give Carbon’s ads a powerful voice and stand in stark contrast to what has become the industry norm, where multiple ads compete for attention. Additionally, the publisher selection process uses reader ‘trust and engagement’ as an acceptance criteria rightfully positioning ads as a recommended resource rather than a necessary evil.

Ads provided by Carbon’s advertisers are required to compliment the aesthetics of the publishers’ sites; maintaining design integrity and ensuring that the relationships the publishers have with their readers are respected. “To make advertising meaningful again we realized that our ads needed to be both beautiful and relevant,” says Joshua. “In that spirit, we have chosen to approve only innovative, interesting products and services which have been tested by our team or otherwise offer unique value to the Circle.”

Moving forward, Carbon is expanding into other niche Circles within the Web development, art & culture, photography and writing industries. Differentiating itself from other advertising services, that have traditionally sacrificed value and quality for volume, Carbon will continue to focus on fostering lasting relationships, in turn bringing more beautiful, relevant ads to a wider readership.


Foxwoods to Sponsor Games’ Last 5 Minutes

The last five minutes of basketball or hockey games is often the most valuable time for any advertiser to get its message to viewers, who are most likely to stay glued to their seats in the arena or on sofas at home while the game is on the line.

That is why Foxwoods Resort Casino will announce on Tuesday that it has signed a deal to be the exclusive advertiser during the last five minutes of professional basketball and hockey games at Madison Square Garden and on Knicks, Rangers, Liberty, Devils and Islanders home games broadcast on MSG’s cable sports networks.

MSG and Foxwoods say that the “Final Five” sponsorship is the first time an advertiser has bought commercial control of a specific time during professional sports games in the arena as well as on television.

It is also the latest deal between a casino and sport teams, which attract similar demographic groups, namely men in their 30s and 40s who are willing to spend a lot of money on entertainment. The Mets and the Yankees also have casinos as sponsors (Caesars and Mohegan Sun, respectively). Foxwoods is a major sponsor of the Liberty and has an alliance with the Nets.

“Our research kept telling us that their customers look like our customers in our arena,” said Scott O’Neil, the president of MSG Sports. “Of course, we’ve seen halftimes brought to you by some company. What we love is this is when fans are most engaged in the game.”

The deal is worth about $1 million a year for five years, according to an industry executive with an understanding of the agreement.

During the last five minutes of Knicks, Liberty and Rangers home games, Foxwoods’s name and logo will be shown on the scoreboard, on signs courtside and elsewhere in the arena. During broadcasts of those games, as well as home games for the Devils and the Islanders carried on a MSG network, the Foxwoods logo will be shown on the top or bottom of the screen, accompanied by an introduction from the announcer, and will be superimposed on the glass behind the hockey goals.

Television viewership is generally higher later in games that are competitive, especially those played during the week at night, as more fans get home from work. Ratings for Knicks and Rangers games last season rose about 25 percent during the last 15 minutes of the game, MSG said. Of course, in games where the result is largely decided, viewership may drop off.

Still, “the upside far, far outweighs the downside,” said Bill Sutton, a sports-marketing consultant who worked for the N.B.A.

Because Foxwoods’s sponsorship starts around when the game clock hits the five-minute mark of the fourth quarter or third period, its logo may be seen much longer than five minutes because of timeouts and other stoppages.

“You can buy a billboard for X amount a year and get Y amount of views,” said Rob Victoria, the chief marketing officer for Foxwoods. “But with the announcers doing live reads and the stadium full, it’s a way to advertise with more impact.”

Foxwoods, Victoria said, has increased its advertising in the New York area because it faces growing competition not just from Mohegan Sun, but also from gaming operations in Pennsylvania, New Jersey and other locations. He said that since Foxwoods started sponsoring the Liberty, the share of visitors to its casino from the New York region has increased three percentage points, to 10 percent.


Web Ad Revenue Surges 13.9% in 2010

The recession is starting to fade from memory, in the online ad world at least.

Online advertising revenue will surge by 13.9 percent to $25.8 billion in 2010 in the U.S., according to the latest forecast from industry researcher eMarketer. That’s at least the third time that eMarketer has revised its 2010 spending estimates upward. A year ago the company predicted 5.5 percent growth this year. By May of this year that estimate had swelled to 11 percent.

The next several years should be robust for the online ad space as well, according to eMarketer. Next year, spending will climb by 10.5 percent—and in fact the researcher foresees double-digit spending growth in every year through 2014 with revenue netting out at $40.5 billion.

It appears that the Web’s relatively low cost compared to other media, coupled with its reputation for trackability may be propelling more dollars to the medium during the prolonged downturn.

According to eMarketer analyst David Hallerman, “It may seem ironic, but marketers’ economic concerns are leading them to spend more for online advertising.” 

4.13.2010

Media Update - April 2010

Online Ads Show Signs of Pickup

Signs of life are returning to the Internet-ad business after the harshest year since 2002, with a new report on Wednesday showing that U.S. online-ad spending started to pick up again during the second half of 2009.

U.S. online-ad spending reached $6.3 billion during the fourth quarter of 2009—the largest quarter on record for Internet advertising, according to a report released by PricewaterhouseCoopers and the Interactive Advertising Bureau, a trade group of media and technology companies. Spending during the fourth quarter increased 2.6% from the same period in 2008.

"The worst of the economic impact on Internet advertising is over and the seeds of growth have been planted," said David Silverman, partner at PricewaterhouseCoopers.

Fourth-quarter growth in 2009 capped a bleak year in the digital-media business, where total online-ad spending dropped 3.4% to $22.7 billion, according to the report. That yearly decline marked the first drop in the online-ad market since 2002, when online-ad spending fell 16% following the burst of the dot-com bubble.

Some online-ad formats fared better than others. Search remains the largest online-ad format and continues to take share of the U.S. online-ad market, making up 47 % of 2009 ad revenue, up from 45% in 2008. Search-ad spending increased 1% in 2009 to $10.7 billion compared with 2008.

Spending on display ads, the graphical ads that border Web sites, increased 4% to $8 billion in 2009. Spending on online video grew 38% in 2009 to $1 billion.

But some ad formats experienced sharp declines. Ad spending on classifieds dropped 29% in 2009 to $2.3 billion. Ad spending on lead generation dropped 14% to $1.5 billion, and email-ad revenue dropped 28% to $292 million.

Compared with the broader media business, the Internet escaped the economic downturn relatively unscathed. Total ad spending declined 12.3% in 2009 to $125.3 billion compared to 2008,, according to WPP's ad-tracker Kantar Media.
Several forecasters predict that online ad spending will experience double-digit growth this year and continue to take share from traditional media, like print and TV. Online ad spending will grow 5.5% this year to $23.6 billion, according to research firm eMarketer.
While online advertising is a growing piece of the total advertising business, several impediments remain before the amount of dollars marketers spend online matches the amount of time consumers spend on the Internet, industry experts say. Internet advertising lacks strong measurement standards and remains too complicated to buy, says Terence Kawaja, managing director of investment bank GCA Savvian Advisors. "What is needed in the interactive industry is some revolutionary thinking," Mr. Kawaja says.



Burst Acquires U.K. Network OTP Media
Burst Media is set to grow in Britain thanks to its acquisition of OTP media, an ad network based in the U.K.
OTP boasts a strong presence in verticals like parenting, automotive, sport, food and entertainment, making it an attractive acquisition for Burlington, Mass.-based Burst, which was already the 16th largest ad network in the U.K. Terms of the deal were not disclosed. "OTP Media shares our core value of championing online vertical content and the Web publishers that produce it," said Jarvis Coffin, CEO of Burst Media, in a written statement. "This acquisition adds to the value of what both companies can bring to U.K. publishers and the resources they can put to work for U.K. advertisers trying to reach engaged audiences online."

Publishers in the OTP stable include RobbieWilliams.com, Carpages.co.uk, Streetmap.co.uk and i92.com, and advertisers include Marriot Hotels, Mercedes, Paramount and Pepsi.
Like other online media companies, Burst has lately been pouring resources into developing a presence in niche verticals. Burst's most recent acquisition came in October when it purchased Giant Realm, a network that focuses on 18-34 year old men by targeting gaming, comic and gadget sites.

YuMe Includes Silverlight
Video ad network YuMe on Tuesday is expected to announce that its ACE ad platform now supports Microsoft's Silverlight plug-in media player. As such, publishers who equip their Silverlight players with ACE technology will now be able to monetize their video content through YuMe's video ad network, and will have the option to take control of their video ad operations with the ACE Ad Management System.

The deal represents a big win for Microsoft in its ongoing battle against Adobe's omnipresent Flash player. According to Jayant Kadambi, co-founder and president of YuMe: "A growing number of publishers are choosing to use Silverlight."

In September 2007, Microsoft selected YuMe as its ad-serving platform and sales partner for the launch of its Windows Media Center Internet TV offering. Then in June 2008, the companies announced that Microsoft had selected YuMe to help monetize unsold video inventory across its online properties.

"Products like ACE ... help developers use their existing skills," said Brian Goldfarb, director of the developer platform group at Microsoft.

YuMe ranked as the third-largest U.S. video ad network last November, with 73.4 million unique viewers and a potential reach of 43% of online video viewers, according to comScore. YuMe said it served more than 2.5 billion in-stream ads in the fourth quarter of 2009 -- its highest quarterly total to date.

In February, the company closed a $25 million round of funding, led by new investor Menlo Ventures. Existing investors Accel Partners, BV Capital, DAG Ventures and Khosla Ventures also participated in the round. YuMe's publisher clients include Microsoft's MSN, Msnbc Digital Network, IDG Entertainment and Glam Media, among others. YuMe presently offers about 20 different ad units spanning different types of pre-, mid- and post-rolls, overlays and page takeovers that advertisers can customize further by choosing different features. The company's broader efforts include encouraging marketers to experiment with different formats and features in video advertising.

Microsoft debuted Silverlight in early 2007. The plug-in for playing media files and displaying interactive Web applications was introduced as part of a full suite of cross-platform Web development tools for both Windows and Mac operating systems.

Today, 71% of the U.S. online audience watches video online, while Forrester expects the number of streams consumed to more than double by 2013. Driving this growth is an explosion of video content from users, professional studios, and marketers. +


YuMe Expands Office Into Redwood City Landmark
REDWOOD CITY, Calif., April 16 /PRNewswire/ -- YuMe, the leading video advertising technology company, today announced it will be moving its corporate headquarters to Foresters Hall, a newly-renovated historical landmark in downtown Redwood City, California. The new office will give the rapidly growing company more room to expand, and let employees take advantage of Redwood City's excellent access to public transportation and the shops and restaurants in its vibrant downtown.
"Our move to Redwood City will help support YuMe's aggressive expansion," said YuMe CEO Michael Mathieu. "Having a beautiful new headquarters just a few blocks from Caltrain will allow us to continue to attract and retain top talent from across the Bay Area. This move culminates a strong first quarter for YuMe, during which we have achieved profitability, closed a new round of funding, and made key additions to our executive team."
"It's a pleasure to welcome YuMe and its employees to our Downtown," noted Redwood City Mayor Jeff Ira. "They represent a new influx of businesses deciding to locate here, and be part of the renaissance of our Downtown.  It's clear that the best and the brightest – like YuMe – recognize that Redwood City is the right place to put down roots and find opportunity."
Located at 1204 Middlefield Road, the building, originally named "American Foresters Hall," was built in 1913 to serve as the headquarters of the Redwood City chapter of the Foresters of America. From the beginning, Foresters Hall served as a civic center and gathering place for the entire community.  The second floor, designed as a meeting place for the many fraternal organizations and secret societies popular at the turn of the century, featured heavy doors with peepholes for observing anyone seeking entrance to the main meeting room. Starting in March, that room will be the new home for YuMe employees' fierce table tennis battles.
During World War I, Foresters Hall functioned as a meeting place and uplifting environment for soldiers back from the front. Throughout the Great Depression, the location served meals to those in need. From the 1940s to the 1960s, Foresters Hall hosted concerts and performances, becoming one of the most popular locations in the Redwood City area for live music.



3.04.2010

Media Update - March 2010

Global online ad market grew by 8.5% in Q4

While all the talk in recent years has been about how print advertising is plummeting as budgets are moved online, websites haven't exactly been coining it during the recession either.

But new figures from market researcher Strategy Analytics show that the global online advertising market grew by 8.5 percent, year-on-year, in Q4 2009, to $17.2 billion. The a lot of the growth has been attributed to a general loosening of advertiser purse strings, specifically with respect to experimental formats and the holiday season.Unfortunately, the online advertising market seems to be getting less competitive, with Google increasing its revenue share at the expense of competitors like Yahoo and Microsoft.
"Although the search advertising market continues to grow, most of the growth goes to Google and other local search leaders, such as Baidu and NHN," said Martin Olausson, director at Strategy Analytics. "Advertisers started to loosen their spending control valve on experimental ad formats in Q4, which led to the growth of new ad formats, such as online video ads, in this quarter."On the whole, there is a feeling of optimism around the online advertising.
Companies still have to market their products and perhaps, as they looked for cut-price alternatives during the recession, they've also been forced to acknowledge the limitations of social media. "The online advertising market has suffered badly in the past year but the worst has passed. We have a positive outlook for the coming years," said analyst Jia Wu.

IAB partners MySpace to scout for digital talent
The Internet Advertising Bureau – the trade body for online and mobile advertising – has partnered with MySpace to provide an online destination for young people keen to learn more about digital advertising.
This initiative forms part of the IAB’s aims to engage with students and graduates to ensure new entrants to the industry are equipped with the knowledge, insights and practical guidance necessary to make their mark in the digital world.
Featuring a range videos on advertising and creativity, educational materials for those new to online and a full events calendar, www.myspace.com/digitaltalent will also support the IAB’s University Roadshow which will be launched with their first visit to Bournemouth on 3 March.
Photos and commentary from the Roadshow will be made available on the page, which has been designed to spark an ongoing conversation with 16-24 year-olds in the UK, looking to enter the space.
To guarantee regularly refreshed content and further interaction, the IAB has enlisted a number of workers within the industry from agencies such as Mediacom and Mediaedge CIA to blog about their experiences and give advice about how to get ahead in online advertising.
In the coming months they will also be running a series of MySpace competitions, offering young people the chance to win work experience within many of the members of the IAB Talent Taskforce, and the winners will then be asked to blog about their time there.
Stuart Aitken, editorial manager of the Internet Advertising Bureau, said: “Young people outside of the industry are a brand new audience for the IAB, and it made perfect sense for us to engage with them in a ready-built community, and on their terms. The MySpace initiative is a big step for the IAB, and we intend to engage with our followers on a regular basis, providing inspirational content and real insights from those working at the heart of the industry.”
Simon Daglish, VP Commercial Director Of Fox Interactive Media, said: “We are delighted to be working with the IAB on this new initiative. It is important that we continue to attract the best creative talent to the media industry. MySpace is a valuable conduit between the media industry and a young, vibrant, 16-24 yr old engaged audience.”

1.08.2010

Media Update - Jan 2010

Online Vid Viewing Explodes in November


Baskin Robbins may still have 31 flavors, but November 2009 boasted more than 31 billion online videos viewed in the U.S., according to comScore. I’m a bit more impressed by the latter.

It was the biggest month ever for online video viewing, with more than 170 million unique U.S. Internet users tuning in, each watching an average of 182 videos during the month.

Google’s sites took the lion’s share, accounting for 39% or 12.2 billion of all videos viewed; 99% of those viewings were through YouTube. Google ranked in 129 million unique viewers — with 94.7 videos viewed by each — compared to Yahoo!’s sites, which reached 55 million viewers (only 8.5 videos per each).

Hulu trailed Google in views with 924 million (3%), while Viacom Digital claimed third place with 500 million (1.6%) and Microsoft sites followed with 480 million (1.5%).

As for video ad networks, Tremor Media boasted the greatest potential reach with 85 million viewers (49.8% of the total viewing audience) and 20% penetration. Advertising.com had a potential reach of 80 million viewers (47.1%) and YuMe had 73 million (43%), while BBE and BrightRoll had 17.5% and 16.6% actual penetration, respectively.