Local Web Advertising

Forecast: Spending will triple in 2008, to $1.3B

From Media Life Magazine - "Local online advertising will once again be hot in 2008; that hasn’t changed. What is changing, however, is how this advertising is delivered, compared to past years when banners and pop-ups dominated, and who is selling it. "

Some other points from the article:

  • A shift out of banners ads and into search, email, video and promotions
  • Local online video ads will triple in 2008
  • Local media companies (newspapers, radio, TV, etc.) must develop internet-only sales staffs to compete

If you own a local business or lead another local organization you need to be tuned in to the huge impact the Internet is having on the local advertising market.  Perhaps nowhere is the cultural shift creating a bigger impact than in advertising and media.

A good time to get started on a local Internet-based campaign would be now.

But first get a plan.  (See previous post)

Internet Advertising to Overtake Radio in 2008

That was the prediction yesterday by Steve King, CEO of communications strategy company ZenithOptimedia.

"We predict global Internet advertising to pass three milestones in the next three years," a rep for Zenith said in a statement. "To overtake radio advertising in 2008; to attain a double-digit share of global advertising in 2009; and to overtake magazine advertising in 2010, with 11.5 percent of total ad spend."

Link to article on AdWeek.

Link to global ad spend chart.

The End of Advertising (as we know it)

“The next 5 years will hold more change for the advertising industry than the previous 50 did.”  So begins a recently released report from IBM Global Business Services. Many of us have been talking about the cultural shift and its impact on marketing for years, and it’s nice to see “Big Blue” weigh in.

Some highlights of the report projecting growth rates for 2007-2010:
•    US local stations can expect annual advertising revenue growth rates of 2% per year
•    Internet advertising is expected to grow at 20% annually during that same time. (Internet advertising growth has consistently outperformed previous projections)
•    Newspapers 2%
•    Mobile advertising 41%

Some other observations from the report which underscore the cultural shift in media:
•    Within five years, advertising executives expect 15 percent of television viewing time and 25 percent of PC time to be devoted to user-generated content (UGC)
•    Two-thirds of the industry execs expect 20 percent of advertising revenue to shift from impression-based formats to impact-based formats within three years.
•    The US television advertising upfronts are not likely to exist more than another few years.
•    The two variables likely to be most disruptive to the industry’s future are the increasing degree of consumer control over marketing and the shift toward open exchange platforms for advertising sales.
•    Agencies are developing new approaches to put consumers at the center of marketing programs. (Imagine that!)

There’s a lot more in the report which will prove either disturbing or exciting (my view) depending on your perspective.

Download report here.

Also check out the Internet vs. TV street interview.

Online Ad Spend Still in Infancy

According to a recent report by Marketing Sherpa, online ad spending (while growing at an impressive clip) is still dwarfed by more traditional offline methods.  For instance, paid search is running at about an $8 billion annual clip and other online advertising is about $4.5 billion annually.

The largest of all offline spends is direct mail with a spend of about $59 billion per year followed by newspapers at $30 billion and network TV at $25 billion.

Even the annual spend for Yellow Pages offline is nearly double paid search.

But there's the growth factor online.  "Online spending will surge to $18.9 billion by 2010--up about 59 percent from an estimated $11.9 billion this year, according to a report released Monday by Jupiter Research. But despite the uptick in online revenues, Web advertising will account for just 7 percent of all ad spending in 2010--compared to 5.6 percent this year, according to the report, "U.S. Online Advertising Forecast, 2005-2010.""

Opening a New Chapter

Biz_dreams_logo_color_cmyk_640_x__2 A friend of mine shared a quote with me about 11 days ago attributed to Dan Rather, "Don't start over so late that it's too late to start over."  Then just yesterday another good friend quoted George Eliot to me, "It's never too late to be who you might have been."

I don't think either of them realized that I was on the cusp of a dramatic move in my life, leaving a job I loved at BMCFerrell Advertising and launching into my own business.  I'm grateful to Ben Ferrell for 5.5 great years, and I'm going to miss the daily contact with some really great people.  But I'm really pumped about my return to the pursuit of my childhood dreams.

The company is BizDreams, and I'll be posting more info and updates in the days, weeks, months, and years ahead.  I'll be working mostly with entrepreneurs and entrepreneurial types developing and executing marketing and advertising strategies for top line impact.  I'll no doubt be helping some nonprofits and ministries too since I have a lot of experience with that in my background.

And while I know this announcement is not going to move the needle on anyone's Richter scale it marks a significant time for me and my wife on what has been an adventurous, challenging and profoundly interesting journey.

FOOA Day Two

Fooabadge The conference has been excellent. 

I'm a bit weary of writing about it, so let me summarize (in my own words like Mrs. Johnson told me in sophomore English).

  • The rate of growth in online advertising is steep which is creating a lot of opportunities for those who figure it out.
  • According to a survey by Marketing Sherpa, the combined spend for paid search and online ads for a recent 12-month period is estimated at 12.2 billion dollars.  This is substantial but to give it perspective consider that the spend for direct (postal) mail alone was $58.7 billion, newspapers $30 billion, and even local radio rang in at $15.5 billion.  But online is growing the fastest and is in fact eating into ad spends for many other mediums including television.
  • According to Jay Adelson of Digg and Revision 3 fame, forget trying to build Internet video around the Flash player.  You're going to need something portable and something that will work well with that big flat screen hanging on your living room wall.
  • Carla Hendra of Ogilvy had a lot of great points including:

Continue reading "FOOA Day Two" »

Future of Online Advertising - Day One, Part Two

Lunch was "butlered" no less.

This FOOA conference really has a great line up of speakers.  There's almost too much to digest, but I've been busy making mind maps for each of the speakers to help me remember the salient points.  And my MacBook Pro has been performing flawlessly.

Chas Edwards of Federated Media kicked off the afternoon focused on the emergence of conversational media.  For businesses, the key is finding out what your customers are discussing and then try to enter into that conversation.  He noted that Business Week says its blogs are now more influential than its magazine.

Ted Murphy of PayPerPost talked about connecting advertisers to bloggers.  I'm not too big on the idea of bloggers selling ads and I think the number of organizations who can benefit from blog advertising are limited.  But, PayPerPost is a good resource for those interested.

Henry Copeland, founder of BlogAds, was up next.  Blogs could be locations where your customers are carrying on those conversations. 

Continue reading "Future of Online Advertising - Day One, Part Two" »