2.18.2009

Social Networking Attracts 75% of Online Europeans

Of the 282.7 million European internet users who went online in Dec. '08, 211 million visited a social networking site, 74.6%, according to comScore.

  • The UK (79.8%) and Spain (73.7%) had the highest social-networking penetration.
  • Norway (58.9%) and Austria (49.7%) had the lowest.
  • France (63.9%) was the 3rd. largest with 21.7 million visitors in Dec. '08 behind the UK with 29.3 million visitors and Germany at 24.9 million visitors
  • The total number of French internet visiting a social network was up 45% year over year.



Facebook.com ranked as the most popular social networking site in France, with 12 million visitors, growing 443% over the past year after launching a French language user interface in February. Skyrock ranked second with 11 million visitors (up 8%). MySpace Sites (3 million visitors) and Flickr.com (1.8 million visitors) rounded out the top five.

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2.16.2009

Performance-Based Ads to Increase in ‘09


B2B marketers to increase spending on performance-based ads in '09 at the expense of traditional display ads because of clear measurable returns, according to a  Econsultancy and Convera.

  • 78% of advertisers planning to raise spending on CPA formats
  • 67% plan to increase spending on cost-per-lead (CPL) ads
  • Just under half on cost-per-click (CPC).
  • 29% to increase spending on CPM (display mostly)


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2.09.2009

Search is the economy ... stupid!

All sectors of advertising, marketing services and media trimmed jobs in Dec. except internet-media companies and web-search portals, according to Bradley Johnson , AdAge.com.
  • The U.S. advertising and media industry slashed 18,700 jobs in Dec. '08, bringing job losses in this recession to 65,100, 3.9% since Dec. '07.
  • The ad industry employed 1.59 million people as of December.
  • Internet-media companies and web-search portals added a dismal 800 jobs, bringing employment to 82,200.
  • Media companies eliminated 41,000 U.S. jobs, 4.6% from the time the recession began.
  • Advertising/marketing-services firms cut 24,100 jobs, or 3.1%.
  • Among advertising/marketing-services companies, ad agencies last year cut 6,000 jobs, or 3.2% of staff, and graphic-design firms eliminated 7,400 jobs, or 9.9%.
There were bright spots: Marketing-consulting employment rose by 2,200 ... I feel blessed ;-)

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2.06.2009

Search growth slowing, only part of the picture

US search advertising spending fell 8% in Q4 '08, according to firm Efficient Frontier.

Reductions among smaller companies that spend less than $50,000 on search ads per month more profound, cut their spending by 23%. Advertisers that spend more than $200,000 on search monthly cut spending by 9%. Those that spend between $50,000 and $200,000 held flat
  • Search ad spending among financial advertisers fell 20%
  • Automotive spending dropped 15%
  • Retail advertisers increased spending 9% in Q4
"Even though the SEM company says US search ad spending fell by 8% in Q4 '08, reported earnings from the major search companies counter that data", David Hallerman, eMarketer senior analyst.
  • Google’s US net search revenues in Q4 up by 17% year over year.
  • Yahoo! reported US search revenues in Q4 up by 18%.

US search advertising expected to grow 14.9% in '09 to $12.3 billion, down from 21.4% in '08, according to eMarketer. 

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Optimistic European ad spend outlook

Search will fare best as interactive marketers focus on highly accountable direct response advertising, while display advertising will be hardest hit in this recession just as it was in 2002, Forrester.


"Online will be hurt, just with all channels during a recession, but the fact is that online is in a better position than offline."

  • European online ad spend growth slowing to 10% in '09, from 30% in '07.
  • WPP's GroupM, Enders Analysis, and E-Consultancy anticipated year-on-year growth under 10%.
  • Display set to bear the brunt of cutbacks
  • Advertisers turn to the accountability of Search
  • Dwindling demand and falling inventory costs will create opportunities for savvy advertisers.
  • Advertisers also increasingly turning to video, which will grow to around 60% of European display spending by '13

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2.05.2009

Online advertising revenues pick up in Q4 '08

Interesting perspective from Erick Schonfeld, TechCrunch. After a full year of slowing growth, the combined ad revenues of Google, Yahoo, Microsoft, and AOL actually picked up in Q4, a 3% rise compared to Q3. Combined revenues grew 8% on an annual basis. Search advertising may be making up for the continued weakness in display advertising.
  • Combined ad revenues totaled $8.5 billion in Q4, up from $8.2 billion in Q3 and $7.8 billion in Q4 '07.
  • The sequential growth of their combined ad revenues ground to a halt in Q3 from 12.7% sequential growth in Q4 '07 to 0.6% in Q3.
  • Google accounted for 65% of those revenues, up from 61% a year ago.
  • Yahoo’s 19.1% share of revenues went up quarter-over-quarter.
  • Microsoft’s $866 million in online revenues gave it a 10.2% share, up from 9.4%in Q3. AOL’s advertising revenues remained flat at $507 million, 6% share.



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2.03.2009

Online retail at $156B in '09

Online retail sales expected to rise 11% to $156 billion this year, excluding travel, according to Forrester Research
  • Majority of online retail spending growth in '09 at the expense of physical stores because i) easier to comparison shop and ii) find what they're looking for.
  • Overall growth rate slows down from 13% in '08, totaling $141 billion
  • Online sales to make up 7% of overall retail revenue in '09, compared with 6% in '08.
  • Amazon primed to benefit. However, some big retailers with a Web presence, such as Best Buy Co. and Macy's Inc., could continue to capture a disproportionate share, since consumers are familiar with those brand names.

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