Mobile platforms fuel spending growth in U.S. advertising...

Mobile platforms fuel spending growth in U.S. advertising...

Advertising spending in the U.S. and Canada is expected to grow 4% next year, according to newly released forecast by ad giant ZenithOptimedia.

This year, spending is expected to inch up 3.4% in North America, slowing a bit after last year's infusion of spending to capitalize on viewer interest in the London Olympics, ZenithOptimedia said in its Advertising Expenditures Forecast, released Monday.

"Consumer confidence, retail sales, job numbers and house construction are all trending encouragingly upwards," ZenithOptimedia's report found.

Mobile advertising is fueling the growth. ZenithOptimedia predicts that advertising geared for smartphones and tablets will account for half the total growth in ad expenditures in North America this year. The mobile advertising market is estimated at $6.2 billion.

Although it is the fastest-growing segment, mobile ads still represent less than 4% of the total ad spend in North America.

Internet advertising continues to outpace growth in traditional ad platforms of television and print media. Television remains marketers' favorite medium, collecting nearly 40% of the total ad spend.

Worldwide ad spending is expected to grow 3.5% this year, surpassing the $500 billion mark -- thanks to a strengthening European economy and continued growth in developing nations, ZenithOptimedia found.

ON LOCATION: Where the cameras roll

The firm is predicting larger gains -- 5.1% in 2014 and 5.9% in 2015 -- as European economies continue to stabilize and improve.

Latin America, Asia and Eastern Europe are posting the highest rates of expansion. Commercial spending in Latin America is expected to swell 9.6% this year, while Eastern Europe and Central Asia is on track to notch growth of nearly 11%.

However, the peripheral Eurozone region -- which includes the reeling economies of Greece, Spain, Italy, Portugal and Ireland -- is on track to post a 16% decline this year, ZenithOptimedia found.

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Google Pulls Plug on TV Ad Sales System...

The TV Ads in Adwords service, which faced industry resistance, will come to an end later this year.

Google Search to Start Targeting Copyright Violators

Google Close to Resolving EU Antitrust Probe

Google is pulling the plug on an online exchange that tried to establish the online giant as a major player in the sale of TV ad spots.

In a blog post late Thursday, Google said it would end its TV Ads in Adwords service later this year.
Google has been successfully selling paid-search ads online and wanted to push into the TV ad space, but faced resistance from established players in the TV and advertising communities.
Google's Second-Quarter Financial Report Impresses Wall Street
Hallmark Channel and NBCUniversal's cable channels became early partners, hoping to draw more local advertisers that Google has relationships with. But the Google ad venture was dealt a setback in 2010 when NBCUniversal ended its deal a year early.
"In 2007, we launched Google TV Ads in AdWords to bring digital buying and measurement technologies to traditional TV advertising," Shishir Mehrotra, vp of product at Google's YouTube, wrote in the blog post late Thursday. "Since then, lots of our clients have bought traditional TV advertising for the first time. However, video is increasingly going digital, and users are now watching across numerous devices."
Added Mehrotra: "The future of video advertising is extremely bright, and we're excited to devote ourselves fully to it."
The service's staff would be moved "to other areas at Google," the post said without providing more details.

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Record High for U.K. TV Ad Revenue

Record High for U.K. TV Ad Revenue

With $6.85 billion spent, TV advertising is expected to have outperformed the total U.K. ad market in 2011.

LONDON - Television advertising revenue in the U.K. increased by 2.2 percent year-on-year to a record £4.36 billion ($6.85 billion) in 2011, as advertisers such as Internet giants Google and Groupon ploughed millions into TV commercials for the first time, according to The Guardian.

U.K. TV exports soar by 25% in 2008

The U.K. TV market was buoyed by 887 new or returning advertisers – defined as those who have not run commercials for at least five years – according to research conducted by TV marketing body Thinkbox and Nielsen Media Research.

Google, which has historically shied away from TV and brand advertising, spent $8.2 million on TV ads in the U.K. last year – 23 percent of the $35.4 million that Google spent in the U.K. on all forms of advertising – including Internet, outdoor, press and radio – according to figures from Nielsen.
Tess Alps, chief executive of Thinkbox, said the rise in U.K. TV ad revenue was an encouraging performance particularly given that in 2010 the market rose 16 percent year-on-year in the recovery following the downturn, making a further rise last year all that more difficult to achieve.
"The strength of linear TV advertising investment reflects commercial TV's record viewing and the further acknowledgement by advertisers of its ability to create business profit," said Alps.
In January, Thinkbox produced its annual TV viewing report, showing U.K. viewers watched an average of four hours and two minutes of television per day. Each viewer watched an average of 47 TV ads per day in 2011.

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Awesome Guerrilla Ads

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PBS to Add Commercials During Shows...

Public broadcast execs explain the decision by pointing to the steep drop-off in ratings when traditional messages were aired between shows.
PBS is breaking from its long-term model and adding commercials to shows, PBS officials told member stations at a recent conference in Orlando.
Instead of airing breaks every 50 minutes, as the public broadcaster does now, it will air them every 15 minutes beginning this fall, according to the New York Times. Nature and Nova are two of the shows that will contain corporate and foundation sponsor ads, promotional messages and branding every 15 minutes.
Feelings about the move are mixed.
"One of the biggest things they have to sell is that they are noncommercial," David D. Oxenford, a partner with the law firm Davis Wright Tremaine, which represents several public broadcasters, told the Times.
Said Alberto Ibargüen, a former PBS board chairman and president and chief executive of the Knight Foundation, "My first reaction is that in any kind of marketing opportunity, if you give up something that is desirable and differentiates you from your competition, it's too bad, and that's what this is."
But he said the public broadcaster did not make this move in haste. "The people of PBS would not do this lightly."
John F. Wilson, the chief programming executive for PBS, pointed to the steep drop off of audience members once the promotional spots aired at the end of the shows: "It's almost as if someone pulled the fire alarm and they scrambled for the exits."
(PBS did not provide specific ratings figures.)
"I'd look really carefully at a Masterpiece drama, at how we'd do that or how often we'd do that," he added.
Now producers will have to restructure their shows to contain breaks.
"It's not like this is untested, uncharted territory in some respect," said Wilson.
Antiques Roadshow will begin airing sponsor messages in January "between looking at Grandma's sofa and the 1850s flintlock someone had in their basement," Oxenford told the Times.

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Online Ad Revenues Hit Record High in 2010

Advertisers spent a record $26 billion in the U.S. marketing their wares online last year, putting the Internet ahead of newspapers for the first time.
The 15 percent year-over-year surge in online advertising put the Internet second to television as the leading medium for generating ad revenue.

Television, which includes local, cable and broadcast spending, brought in $68.7 billion. Newspapers took in $22.8 billion.

The data was released Wednesday in a 26-page report from the Interactive Advertising Bureau and PricewaterhouseCoopers.

The report also compares the Internet's 16-year-growth trajectory as an advertising medium to the early days of broadcast and cable TV. Even adjusting for inflation, the Internet has been more impressive.

After the first 16 years of broadcast TV (beginning in 1949), the medium was raking in $16.1 billion in the U.S. Cable TV after its first 16 years (beginning in 1980) was generating $7.3 billion in ad revenue.

Internet advertising, though, has taken a rocky path to get to this point, reaching $8 billion in 2000 but taking four years to surpass that amount as the bursting Internet bubble had advertisers fleeing.

Online advertising took another hit in 2009 because of the recession.

But the IAB report touted five straight quarters of growth. The 2010 rebound, said PwC's David Silverman, "points to a continued focus on digital media ad spend, with dollars catching up to the eyeballs."

Search, the area dominated by Google, accounted for 46 percent of the online ad revenue generated last year, while display stood at 38%. Revenue from digital video commercials surged 40 percent to $1.4 billion, about 5 percent of the $26 billion spent last year.

For the first time, the IAB and PwC measured mobile advertising, which came in at $550 million-$650 million last year.

The biggest advertisers online in 2010 were retailers, accounting for 21 percent of the money spent, followed by telecom (13 percent), financial services (12 percent), auto (11 percent) and computing products (8 percent).
Further down the list of big advertisers were media (4 percent) and entertainment (4 percent). Those two industries spent $1.1 billion to advertise over the Internet last year. If combined into a single category, it would be tied with computing products for fifth on the list of largest online advertising industries.

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Events: THE NIGHT OF THE AD (La nuit de la pub)

A conference with Anne Saint Dreux from la 'Maison de la Pub' follewed by two screenings *
*screenings in French and English with subtitles and conference in English

About the Event
From the first film produced by the Lumière Brothers to the most sophisticated special effects, from French advertisements to the most distant creations, the “Nuit de la Pub” (“The Night of the Ad”) offers a journey in time and space.
Speaker Anne Saint Dreux will lead a lecture on Is there a strategy of Emotion in Advertising?, followed by two montage screenings entitled:

French women in advertising
Around the world with 80 ads
A unique chance to discover -or rediscover- the evolution of the advertising film from its beginning, and to better understand how its message is shaping contemporary societies.

About the Speaker
Anne Saint Dreux is currently the Director-Founder of the “Maison de la Pub” in Paris and the official French representative of the “Art Directors Club” of New York. “La Maison de la Pub” highlights the economical and sociological value of the advertising message beyond its unique commercial context.
Since she participated in research in this field, Anne Saint Dreux has tried to make that complex cultural heritage intelligible both for academics and professionals.

This event is presented by Le Lycée Français de Los Angeles in cooperation with the Alliance Française of Los Angeles, the General Delegation of the Alliance Française and La Maison de la Pub.

Adults: $17
Students: $1

When: Thu, March 3 at 7:30 PM

Where: 10361 W. Pico Blvd.
Los Angeles CA 90064

For Ticket Sales & Information, please call (310) 286-0553
email us at trk@lyceela.org
Theater Director: Pierre Leloup: pierreleloup@lyceela.org

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Industry News: GSM Mobile World Congress to Focus on Mobile Advertising...

Location-based services and mobile targeting are among the trends the Mobile Ad Forum will focus on this year.
MADRID — If a few years back the buzzword at the GSM Mobile World Congress was mobile TV and how to incorporate the killer application into handheld terminals, this year's wireless event seems far more about the transformative role mobile advertising is playing.

This annual confab returns to Barcelona this week with a new Mobile Ad Forum to spotlight the importance of the emergent sector. While mobile only comprises 1% of total ad spending today, it is expected to grow to 8% in a short time, blossoming from a $3.5 billion industry in 2010 to one worth $14 billion by 2015, according to Macquarie Equities Research.

A handful of trends are sweeping the sector:

-- Engaging campaigns employing technological advances enable advertisers to harness search-generated and location-based information to target ads more effectively, focusing less on consumers' demographics and more on their behavior.

-- Advertisers understand mobile targeting better and are learning to read return on investment differently than just as a click-through measure.

-- Mobile operators are beginning to exploit their subscriber data to root themselves in the mobile advertising value chain and help deliver relevant ads.

-- Daily deal companies such as Groupon and LivingSocial are mushrooming.

-- Smartphone penetration, allowing increased rich media use, drives market growth

"Mobile advertising is informed by real-time data, which allow for very targeted, relevant advertising experiences in the unique places where those types of consumers can be reached," said Eric Bader, worldwide chief strategy officer for Initiative, Interpublic Group's media communications company.

Mobile searches — where consumers declare their intent through keywords they search on mobile devices — speak to immediate needs more than those conducted on PCs at home or work and give advertisers the opportunity to respond with highly localized, incentive-driven offers that reach people right when they are most likely to buy, according to Bader.

"Location-based services of course are incredibly compelling on mobile phones. Whether review-based, such as Qype or Yelp, or built around game dynamics such as Foursquare and Gowalla, consumers find great utility and engagement from such services," said Rob Jonas, a vp and head of Europe and the Middle East for InMobi, one of the world's largest independent ad firms. "The jury is still out on how advertising combines with these services, however, and 2011 should see that debate resolved."

The future of mobile advertising, all agree, depends on accurate metrics and interpretations of success as action beyond the click through into actual sales, which are 100% measurable.

Some advertising networks now offer customers the ability to combine data from high footfall and high dwell locations with the ability to identify what mobile device a user is using to personalize a campaign experience via SMS, Bluetooth or wi-fi capability.

Said Michael Bayle, vp of monetization and marketing at Amobee, the world's leading mobile ad platform: "By combining outdoor media with mobile, Amobee is offering brands the unique opportunity to accurately measure the effectiveness of their marketing spend."

"If you are not capturing how effective your creative is, how this translates to your campaign objectives and what happens beyond-the-click, then you're in danger of failing to understand the value your campaign has created," Jonas added.

But networks also are aware of the "do not track" legislation the FCC is moving to enact in the U.S. and, as Bayle pointed out, need to navigate the "engaging vs. intruding" issue.

"Amobee is focused on helping our partners have active dialogues with their customers in seeking their demographic information in opt-in manners," Bayle said. "Our push marketing has been successfully adopted by over a dozen operators who are using it to provide incentives to consumers in return for demographic data. Very transparent, very much the consumer in control."

Other issues on the table at the Mobile Ad Forum will include the effectiveness of applications compared to websites; tapping social networks; how the rivalry between Google and Apple has fueled and legitimized the sector; mobile video; growth in regions dependent on mobiles for Internet access; and 3D campaigns on mobile units.

The GSM Mobile World Congress runs through Thursday.

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Industry News: Oscar Ad Spending Reached $720 Million Over Past 10 Years...

For the past five years, just five companies accounted for more than 50 percent of the total ad revenue, while the number of first-timers is increasing, according to Kantar Media.
Advertisers have spent a total of $720 million to promote their products during the Oscar telecast over the past 10 years, according to a report released Monday by ad research firm Kantar Media.

The average price per 30-second spot has fluctuated over the past decade, hitting a high of $1.69 million in 2008 and reaching a low of $1.29 million in 2002. Last year, each spot cost an average of $1.4 million.

For 2011, ABC's initial asking price for a 30-second spot was about $1.7 million, and the available inventory is already sold out, according to published reports.

Over the past decade, the total ad spend per year reached a high of $81.1 million in 2008 and a low of $61.6 million in 2001. The total for 2010's telecast was $70 million.

Meanwhile, a small number of blue-chip advertisers dominate the rankings of top spenders. Over the past five years, more than 50 percent of the total ad revenue has come from only five companies: Coca-Cola, JC Penney, General Motors, American Express and MasterCard International.

However, the recession has led to an increased number of first-time advertisers during the Oscar telecast over the past five years, according to Kantar Media. Forty-eight percent of advertisers during last year's telecast were first-timers, up from 33 percent the year before and up from 15 percent in 2008.

Last year's newcomers included Ameriprise, Estee Lauder, Intel, Kimberly-Clark and Samsung

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