May 2009 Archives

MediaPostNEWS

ONLINE MEDIA DAILY

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MediaPostNews

Marketing Daily

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RESEARCHBRIEF

FROM THE CENTER FOR MEDIA RESEARCH

Monday, May 25, 2009

C. Lee Smith, president and CEO of Ad-ology Research, says "It is critical to advertise in the current economic climate, to maintain long-term positive consumer perception of your brand... advertising... assures consumers of a business' reliability... "

Other key findings include:

• 40% of consumers use coupons more now than a year ago
• Most consumers are as willing or more willing to pay more for 'healthy' or 'organic' products than they were a year ago
• A 'deeply discounted price' was the number-one factor that would make consumers more likely to purchase a big-ticket item (+$1,000)
• TV, newspaper, direct mail, and Internet top local media from which consumers saw/heard an ad within the last 30 days that led them to take action
• Store Web sites ranked second only to search engines as the way consumers research products and shop online

For more information about the availability of the report, with charts, please visit here.

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RESEARCHBRIEF

FROM THE CENTER FOR MEDIA RESEARCH

Thursday, May 21, 2009

Since the release of last year's Benchmark Study, women are turning in even greater numbers to blogs (55%), social networks (75%) and online status updating (20%) as primary sources of community interaction, entertainment and information.

Of the 42 million women engaged in social media weekly:

• 55% of women participate in some form of blogging activity
• 75% participate in social networks such as Facebook or MySpace
• 20% use Twitter
• 45% of survey respondents decided to purchase an item after reading about it on a blog

Susan Wright, President of Compass Partners LLC., says "Bloggers have a broad reach in the social media population... women who blog are the most actively engaged social media participants.. seeking out new ideas and ways to share their opinions... "

As a result of this increased activity, the 2009 study found that women online are now more than ever before spending less time engaging in traditional media activities like:

• Reading the newspaper (39%)
• Reading magazines (36%)
• Listening to the radio (31%)
• Watching TV (30%)
• Talking on the phone (28%)
• Meeting in person            (19%)

The demographic profile of social media users and blog participants in the general population provides a targeting clue:

 Elisa Camahort Page, BlogHer co-founder and COO, says "... when the economy is top of mind for more than 70 percent of these active social media participants...  women are turning to online resources, including blogs, to help them make their day to day purchasing decisions."

The Executive Summary (PDF format) of the 2009 Women in Social Media Study by BlogHer, iVillage and Compass Partners can be found here:

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MediaPostNews

ONLINE MEDIA DAILY

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RESEARCHBRIEF

FROM THE CENTER FOR MEDIA RESEARCH

Tuesday, May 19, 2009

According to American Business Media's 2009 Media Financial Survey, B2B media company revenue declined 2.2% in 2008 versus 2007, but revenue growth in online, live events, and data products helped offset declines in revenue for magazines. B2B media company profitability contribution (revenue less operating expenses) declined 7.8% in 2008 versus 2007.

Of the six key B2B media company revenue categories (Magazines, Custom Publishing, Data, Online, Tradeshows and Conferences), Online revenue showed the strongest growth, increasing 15.1% in 2008, and rising at a CAGR of 26.8% from 2006. Magazines were the weakest performers, showing an 8.4% decrease in 2008, and a decline of 3.9% on a CAGR basis over the three?year period.

Online display and search advertising gained 12.4% in 2008 while magazine net ad revenue declined 10.2% in 2008 and fell at a CAGR of 4.9% over the three?year period. Tradeshows grew 4.3% in 2008. Data and conferences also showed robust revenue growth, increasing 7.0% and 9.9%, respectively, in 2008, though custom publishing remained relatively flat in 2008 and across the three?year period.

Except for magazines, all major B2B media company revenue categories increased on a contribution basis in 2008 and across the three?year period of 2006 to 2008. Key magazine operating costs, including Ad Sales, Editorial and Production, have not declined in line with revenue, and therefore, have negatively affected magazine contribution, which decreased 26.8% in 2008,

Online contribution showed the strongest growth in profitability, rising 11.6% in 2008. Online overtook magazines as the largest component of B2B media company contribution in 2008, says the report. In addition, versus 2007:

• Data contribution grew 10.9% in 2008
• Tradeshow contribution increased 4.5% in 2008
• Conferences and custom publishing also showed contribution growth of 5.9% and 2.7%, respectively, in 2008

in Q4 2008 vs. Q4 2007, B2B media companies showed relatively flat revenue, while advertising dollars continued shifting from print vehicles to online outlets.  magazine net ad revenue declined 15.7% in Q4 2008, while online display and search advertising revenue grew 28.3% quarter?over?quarter. Tradeshows were hurt by declines in exhibit space sales and attendee revenue.

Gary Fitzgerald, CEO of Meister Media Worldwide and chairman of the ABM, said, "It's a time of great opportunity."

Read the ABM report here

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RESEARCHBRIEF

FROM THE CENTER FOR MEDIA RESEARCH

Monday, May 18, 2009

A survey by Lightspeed Research and the Internet Advertising Bureau concludes that the Online audience relates most to advertising that is relevant, useful and incentified with special offers, but there are key differences by age group when developing creative executions.

The survey found that money-off particularly appeals to 18-35 year olds who are more interested in special offers, the entertainment factor, and exclusive information. For 45-54 year olds however, ads need to be more relevant and useful to make an impact. And, in all age groups, there is an appeal to advertisers to better understand their needs.

Every age group surveyed chose sponsored links in a search result, and advertising within a page as the top two ad formats for sparking their interest to click through to the advertisers' website. Newer forms of online advertising are gaining ground, says the report, with ads using sound and video, widgets, in-game advertising and free gifts.

In particular Facebook gifts and branded applications online are especially effective with 29% of 18-24 year old respondents who had seen and interacted with an ad from Facebook or branded content in other social networking sites. 34% of 25-34 year olds say they had seen and sometimes clicked on an email ad.

Sorcha Proctor, research manager for IAB UK says: "The research has found that even though not all consumers click on ads, they are now fully acquainted with most forms of advertising online... "

And, David Day, Lightspeed Research chief executive Europe comments: "This research shows what (stimulates interest) in different age groups... it is clear (that) younger people are (more) interested in entertaining advertisements... "

For more from the IAB, UK, please visit here.

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RESEARCHBRIEF

FROM THE CENTER FOR MEDIA RESEARCH

Friday, May 15, 2009

PopCap Games announced results of a new survey that shows 57% of AT&T wireless customers who were polled play mobile games on their wireless devices. On average, these gamers purchase four mobile games per year, and 17% of mobile gamers consider their cell phone to be their primary device for playing video games.

50% say they play mobile games during work hours, while one in seven mobile gamers say they most often play games on their phone during work when they need a short break. 60% percent play games on their wireless device at least once a month, and 40% said they played weekly or more often.

Michael Cai, vice president of video games research at Interpret LLC, notes that "Adoption of mobile games continues to grow, but conversion rate (free to paid players) remains low... more innovative games... are among the keys to unlocking the potential of the mobile gaming market."

Mobile gaming serves as a distraction and stress relief for on-the-go consumers and is poised for growth in 2009:

• One-third of AT&T mobile gamers surveyed said they were "somewhat or very likely" to purchase a game for their cell phone in 2009.
• 91% of mobile gaming sessions are 30 minutes or less; 62% are less than 15 minutes
• 78% of mobile gamers have been playing games on their phone for more than a year, and 55% of those say they've been playing for 3+ years
• 22.2% of mobile gamers' total game playing time occurs on their mobile phones

26% of mobile gamers said they paid for a mobile game, equating to 15% of all mobile phone owners having purchased a game. 76% of mobile gamers said they have played free games that came pre-installed on their phone, and 33% indicated they have downloaded one or more free games to their phone.

• The top factors influencing participants' decisions to buy a mobile game were "game is in a genre I like" (61%), "price of the game is reasonable" (52%) and "played demo version and liked it" (50%)
• Survey respondents who have purchased one or more mobile games have purchased an average of 7.2 mobile games; 26% said they'd purchased four or more games in the past year
• Respondents who indicated they would not be buying a mobile game in 2009, say: they are "happy with free games" (24%), "none of the games interest me enough to buy" (15%), and "lack of time to play" (14%)

51% of males and 49% of females say they "game," but:

• 44% of male respondents said they play once a week or more often, compared to 35% of female respondents
• 41% of women surveyed say their average mobile gaming session was 15 minutes or more, compared to 35% of men

Women are twice as likely (28% vs. 14% of men) to purchase a game based on having played the game in question on another device such as a computer, while 30% of males say that printed or online reviews factor into their mobile game purchasing decision, compared to just 8% of females.

Supplemental survey results may be found here, or visit PopCap here for more information about the study.

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RESEARCH BRIEF

FROM THE CENTER FOR MEDIA RESEARCH

Wednesday, May 13, 2009

According to study results released by MTV Networks International, reported by MarketingCharts, television remains the most effective medium for reaching today's youth, and it also is most efficient for introducing young people to brands and helping to shape their decisions about purchasing. The study finds that one in four young people between ages 12-24 report that they first see or hear of brands or products from TV ads, and 60% claim that TV ads play a role in their brand decisions.

A brand's appearance on TV elevates its status and gives it an image of quality among youth, the study found. In addition, young people tend to trust TV channels, with the majority of youth reporting they have a favorite channel that they always tune into (80% in US, 73% in UK, 70% in Germany and 88% in India). Japanese youth have much less affiliation to particular TV channel (38%).

Though TV is important to youth in and of itself, it also is one of the most dominant ways of directing youth online, with both TV and Online media becoming increasingly interrelated, says the study. Both media contribute to the pathway to purchase, though the study reveals that brand image matters more on TV, while information and validation matter more Online.

71% of the respondents agree that the internet makes choosing a brand easier, while blogs, review sites and social networking sites are increasingly important in affecting brand decisions. Website reviews are the fourth most important factor for movie decisions (behind friends, TV and cinema ads) and they play an equally important part as official websites when youth are looking to purchase electronic items.

The study points out that young people have mature values when it comes to their brand choices, noting that practical considerations rank highest when youth determine a brand's desirability. Youth between ages 12 and 24 deem quality, history and trust as the most important attributes a brand can possess. 18-24 year-olds are more concerned with a brand's history, and 51% agree that, "knowing a brand has been good for a long time," makes it desirable.

Overall, across all world markets analyzed, the vast majority of young people (69%) now research all purchases before they buy anything, the study found:

The research found that the concept of a "brand" means different things to different people. Youth are most likely to see a brand as a company, name, label or logo, while half of respondents think a brand is an image. This image-brand association is most common in Germany (where 56% agree). Indian youth are much more likely than other nationalities to associate a brand as a trend and 'a way of belonging' (25% agree).

Across all markets, less than 4% say they pay no attention at all to brands. Japanese youth are the most cynical toward brands, with one in three reporting that brands are not something they pay attention to.

Additional international study highlights:

• German and Japanese youth are less driven by a brand name and say they prefer to purchase whatever seems good, though this figure is much lower in the US, the UK and India
• German youth are most concerned with a brand's history, with 64% saying that this makes a brand desirable. The global average is 46%
• One-third of young people in the US say that TV ads are important to their decisions about fashion, while only one in five agree that celebrity endorsement plays a part
• One in three 12-24-year-olds olds in the US claim they talk about brands 'a lot,' while only one in four do so in the UK and Germany
• 62% of the respondents across the five markets agree that they watch more of a TV channel if the channel has a website that enables them to catch up on shows
• 62% of respondents across all markets agree that when they watch a show online they prefer to see it from the TV channel's website

Jules Robinson SVP, Viacom Brand Solutions International, concludes "Despite the economic climate and challenging circumstances for advertisers, we still see a proven ability for TV advertising to reach the target youth audience... (and) we're registering the rise of the influence of blogs and internet research to inform purchasing decisions among these consumers... highlighting the importance of online reputation management for brands... "

Please visit Marketing Charts here for more details and charts.

For more information visit www.mediapost.com

RESEARCH BRIEF

FROM THE CENTER FOR MEDIA RESEARCH

Tuesday, May 12, 2009

Overall findings from 2,500 administrative and management staff from UK, US, France, Germany and the Nordic region were:

Email remains the most common way to organize meetings for both managers and administrative professionals, closely followed by calendar systems. The practice of arranging meetings via online calendars, such as Google Calendar or Yahoo! Calendar, represents a significant share. However, professionals using these calendars declared to spend the same average time for scheduling each week as professionals using other means.

The survey found that face-to-face meetings are less important than expected, possibly due to increased pressure on our time, and the ease presented by modern technologies to create effective meetings either by phone, video or Web.

The average length of a meeting is two hours and 45 minutes, with a fifth of meetings lasting much longer at four to five hours. Managers tend to organize seven meetings a week, and attend meetings they arranged. This means they spend at least 19 hours and 15 minutes, almost half their official working week, in meetings.

The study found that managers are more likely to use the phone to arrange meetings, and, when managers organize meetings, they are more likely to be rearranged.

Medium-sized companies are more efficient at sticking to agreed times for meetings than small or large companies, says the report. While one in every six meetings overall needs to be rearranged, medium sized companies find they only need to reorganize an eighth of their meetings - and large companies tend to rearrange almost twice as many meetings.

Survey summary:

• Business professionals organize seven meetings a week on average, with the mean length of each being two hours 45 minutes
• Most meetings have at least four or five participants
• Across Europe and the US, administrative staff use calendar systems (34%) more than managers (27%)
• 34% of managers prefer email to arrange meetings vs. 30% of the administrative staff
• Managers typically need to rearrange more meetings than their assistants, with 69% of managers needing to reschedule get-togethers compared with 46% of administrative arrangements.

For additional information, please visit Doodle here.

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MediaPostNews

ONLINE MEDIA DAILY

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MEDIAPOSTNEWS

ONLINE MEDIA DAILY

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RESEARCH BRIEF

FROM THE CENTER FOR MEDIA RESEARCH

Thursday, May 7, 2009        

According to the recent Magna Online Video Forecast, the US market for online video will grow by 32% this year, rising from $531 million in 2008 to $699 million in 2009. Though these figures represent downward revisions from a previous forecast, these gains, says Magna, will likely outpace growth rates for most other emerging media platforms.

The report says that as marketing budgets are reduced across industries, advertisers look to reach their consumers in a more targeted and cost-effective manner. In recent periods, the expanding availability of premium network and cable TV programming combined with increasing broadband penetration now covering 60% of US homes by Magna estimates, collectively led to a 24% increase in time with professionally produced online video during 2008, following a 50% rise during 2007, according to Accustream.

Few large advertisers can achieve broad reaching objectives solely by using an online video-only campaign if there are any content preferences involved, concludes the report. As a point of reference, during 2008 490 billion person-hours of traditional television were consumed according to Nielsen. This equates to 244 times more consumption of professional content video than of online video. Even assuming last year's growth rate continues through 2012, traditional TV would still account for 98 times more consumption

Over the next few years, says the report:

• TV content, and traditional TV suppliers, will continue to account for the bulk of online video budgets, but as user-generated content sites increasingly supply professional content to their mass audiences, these sites will produce faster rates of growth.
• Ad networks will continue to serve a valuable niche to the ecosystem, aggregating otherwise unsold (or undersold) inventory in an efficient manner, with cost-effective ways to reach large audiences
• Traditional print publishers will continue to hold valuable inventory, but few will produce significant volumes of content to capture much market share

In total, by 2011, the study projects online video to generate slightly more than $1 billion in net advertising revenues for video content. This represents a compounded annual growth rate of 36% for each year between 2006 and 2011.

For more from Magna about the Online Video Forecast, please visit here.

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RESEARCH BRIEF

FROM THE CENTER FOR MEDIA RESEARCH

Wednesday, May 6, 2009

There are some substantial differences in who is and who isn't using these social networking sites, says the report:

• 74% of those aged 18-34 years old have a Facebook or MySpace account but this quickly drops off the older one gets. Only 24% of those 55 and older have an account
• 8% of 18-34 year olds use Twitter, 7% of those 35-44 use it, 4% of those aged 45-54 and just 1% of those 55 and older
• Men and women use Twitter at the same levels (5% each), but women are more likely to have a Facebook or MySpace account (52% versus 45%)
• Two in five people with a high school degree or less have a Facebook or MySpace account compared to 55% of those with some college and 52% of those with at least a college degree.

There has been some discussion about whether these social networking sites may, at some point, become a threat to search engines such as Yahoo! or Google. Right now, that doesn't seem to be an issue, concludes the study, as 45% of adults believe the sites are popular, but they won't pose a real threat to the domination of search sites while just one in ten say they may become a threat. 46% of Americans are not at all sure. Even among the largest users of the social networking sites, 18-34 year olds, 62% say they will not become a real threat to the search engines.

While the younger age groups are all about the social network sites, they haven't yet migrated to Twitter. The report concludes that if they had found it before the media had, there is a stronger possibility they would be increasing their usage, but they may already be looking for the next big thing.

For additional information from Harris Interactive, please visit here.

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Monday, May 4, 2009

Vertical ad networks tracked include entities such as Adify Media, Federated Media, Glam Media and Travel Ad Network, among numerous others.

Lesle Litton, VP, Media at comScore, concludes that "... as more vertical ad networks prove their ability to effectively reach specific target audiences by aggregating... publisher sites... the industry will likely give greater consideration to these emerging ad delivery channels."

The study shows that vertical ad networks are effective in reaching people with significantly higher than average engagement in their respective content categories. Of the five segments studied, people reached by vertical ad networks spent at least 60% more time in those site categories than the average category visitor.  People reached in the Gaming segment spent 423 minutes per visitor on sites in that category, 123% higher than the average visitor.

  For more information from comScore, please visit here.

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Friday, May 1, 2009

Highlights of the report include:

• The number of American users frequenting online video destinations has climbed 339% since 2003
• Time spent on video sites has shot up almost 2,000% over the same period
• In the last year, unique viewers of online video grew 10%, the number of streams grew 41%, the streams per user grew 27% and the total minutes engaged with online video grew 71%
• There are 87% more online social media users now than in 2003, with 883% more time devoted to those sites.
• In the last year, time spent on social networking sites has surged 73%
• In February, social network usage exceeded Web-based e-mail usage for the first time.

Charles Buchwalter, SVP, Research and Analytics, Nielsen Online, says "The Internet remains a place of continuing innovation, with users finding new ways to integrate online usage into their daily lives... "

Since 2003, interests of the average online user have shifted significantly from portal-oriented browsing sites such as Shopping Directories and Guides and Internet Tools/Web Services, to video and social networking sites that have moved to the forefront, becoming the two fastest growing categories in 2009.

With the global recession in full swing, says the report, online display advertising has plateaued at 20% of total online ad spend in the U.S.. Spending on online display advertising by financial services, automobile and retail companies has declined steeply. On the other hand, several key, heavy ad-spending industries such as healthcare, consumer products and telecommunications appear to be moving even more spending online.

The longer-term prospects for global online advertising continue to be brighter. Projecting, Nielsen reported:

• Led by social media, search and video, the Internet's share of total ad spend will continue its steady upward trend as global economies emerge from the current recession
• Given the increased focus on digital marketing by leading packaged goods companies, the Internet's share of commerce will continue to rise
• In the age of Twitter, feedback barriers have all but disappeared, creating a near friction-free environment for playing back brand experience, campaign reactions or brand events. Recent public cases show that marketers must be quick to react to these channels of instant feedback
• 30% of U.S. mobile subscribers recalled seeing some form of advertising while using their mobile phones, up from 18% one year prior

To download Nielsen's full report on the global online landscape found on The Nielsen Wire, please visit here.

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