This is the year analysts predicted that digital advertising will surpass print in revenues, and here is some proof. Digital revenues outpaced print at business-to-business group United Business Media for the first time in Q1. UBM publishes InformationWeek, The Journal of Commerce and Psychiatric Times, among other titles. It also owns PR Newswire, TechWeb, and offers marketing services.
The company released its Q1 fiscal report yesterday, and for the first time, its online revenue exceeded print. As BtoB describes, revenues from online marketing services totaled $34.4 million, and print marketing services totaled $30.8 million.
That represents an 11.2% boost in online marketing services for Q1 compared to 2011, while print marketing services plummeted 31.4% in Q1 year-over-year (YoY). This was due in part to drops in ad pages, also, to some divestments in titles.
Earlier this week, its InformationWeek title unveiled three new marketing services products in educational programming, social media and live streaming video. The InformationWeek University product includes a sponsored track, which can supposedly deliver a minimum of 800 leads for the sponsor.
The experts at eMarketer called it in January, when they predicted that the online ad spend would bypass print in 2012—across all media. UBM is a well-diversified business publisher, but consumer publications are expecting a digital boost too, after a healthy growth across media of 42.1% in 2011. That growth will be fueled this year by, among other factors, the move to e-reading and magazine apps, and by advertising around the 2012 election and summer Olympic Games. eMarketer has projected that U.S. online ad spending will grow 23.3% in 2012 to nearly $40 billion, and nearly $53 billion in 2013. This will make 2012 the first year in which online ad spends will surpass the total spent on print ads, with $39.5 billion online versus $33.8 billion in magazines and newspapers.
Kantar Media has released its final tallies for 2011 ad spending across media, and the results are a mixed bag. They suggest that advertisers value TV, are losing faith in consumer magazines and newspapers (no news there), and are on the fence about digital advertising.
Surprisingly hard hit were Sunday magazines (like Parade, The Boston Globe Magazine and the New York Times Magazine). Presumably this is because print newspaper subscriberships are down, and readers tend to cut out the expensive Sunday editions to save money, before they cancel daily subscriptions.
Big winners: Spanish-language media, and TV syndication.
Spanish-language TV was up 8.3% year-over-year, versus 2.4% for TV overall. Spanish-language magazines were up 24.9% YoY, defying a 0.4% decline for all magazines.Syndicated TV was up 15.4% over that 2.4% for TV overall (due in part to the astounding success of “The Big Bang Theory” which hit syndication in Q3).
The Year Overall
Total advertising expenditures increased an unimpressive 0.8% in 2011 and finished the year at $144.0 billion. Ad spending during the fourth quarter of 2011 dropped 1.0% versus the year ago period, the first quarterly decline since the end of 2009. Since reaching a post-recession peak in Q3 2010, advertising growth rates have slowed sequentially for five consecutive quarters.
“The contrast of resilient TV spending and waning budget allocations to other traditional media was plainly evident at the end of 2011,” said Jon Swallen, SVP Research at Kantar Media Intelligence North America. “Some mature digital media formats were also touched by the year-end tide of reduced spending. Whether this is an isolated occurrence or an early sign of digital dollars moving more quickly towards emerging and unmeasured digital platforms bears watching as 2012 unfolds.”
Measured Ad Spending By Media
Television continued to lead the ad market in the fourth quarter. Network TV expenditures jumped 7.7% year-over-year and were helped by strong pricing for football, a baseball World Series that went the maximum seven games and the launch of “The X Factor” singing competition program. The rate of Cable growth eased during Q4, finishing at +2.4% as higher demand from restaurants and retailers was offset by reductions from consumer packaged goods. For the full year, Network TV decreased by 2.0% while Cable rose 7.7%.
Spanish language TV ad spending surged 19.1% in fourth quarter, paced by higher sell-out levels at over-the-air networks. For all of 2011, the segment increased 8.3%.
Syndication TV benefitted from higher spending by department stores and health & beauty brands and saw expenditures soar 11.0% in Q4. Full year spending advanced by 15.4%.
Spot TV expenditures fell 8.7% in the fourth quarter but the more significant indicator was that November and December spending were each down, despite easy comparisons against diminished, post-election spending volume of a year ago. Full year Spot TV spending dropped 4.5%.
Free Standing Inserts achieved healthy gains in the fourth quarter with spend rising 3.0%. Although manufacturers have been distributing fewer FSI coupons, retailer promotion pages have increased significantly and this contributed to the improvement.
Ad expenditures for measured digital media declined in the fourth quarter. Paid Search budgets were 6.4% lower versus a year ago with continuing reductions from financial, insurance and local service advertisers. Display investments decreased 5.9% in Q4, dragged down by smaller budgets from auto manufacturers, telecom providers and travel companies. For the entire year, Paid Search declined 2.8% and Display increased 5.5%.
Magazine ad spending eroded at year end. Consumer Magazines declined 5.2% in the fourth quarter due to deep cutbacks in auto, food and pharmaceutical advertising. Total year expenditures were level compared to prior year. Outlays in Sunday Magazines fell 9.8% in Q4, the sixth consecutive quarter of year-over-year declines, and were down 7.2% for all of 2011.
Local Newspaper ad expenditures fell 3.9% during the fourth quarter, hurt by the reallocation of retailer advertising budgets to other media channels during the key holiday shopping season. Full year spending was 3.8% lower. The losses in Newspaper spending are consistent with reductions in the amount of space sold.
The pace of spending in Radio media also sagged. Local Radio expenditures were down 3.8% and National Spot Radio plummeted 13.9% in the fourth quarter. The telecom, financial service and automotive categories were prime contributors to these quarterly decreases.
Measured Ad Spending By Advertiser
Spending among the ten largest advertisers in 2011 reached $16,061.6 million, a 2.8% decline compared to a year ago. Among the Top 100 marketers, a diversified group that represents over two-fifths of all measured ad expenditures, full year budgets were down 0.2%.
For the ninth consecutive year, Procter & Gamble was the top advertiser with spending of $2,949.1 million down 5.4% compared to last year. While TV is still the foundation of its advertising media buys, P&G’s 2011 budget allocation saw share gains for magazines at the expense of TV.
AT&T was the second largest advertiser in 2011 with expenditures of $1,924.6 million, a decline of 11.7%. Media budgets were severely curtailed during the fourth quarter when the company abandoned its attempted acquisition of T-Mobile, triggering large breakup fees and a huge earnings loss. At Verizon Communications, full year ad spending was $1,636.9 million, a decrease of 11.8%. After a string of quarterly budget cuts dating to early 2010, Verizon sharply boosted its spending during the last quarter.
The largest growth rate among the Top Ten marketers was posted by Chrysler, up 36.2% to $1,193.0 for the full year. The increase was driven by marketing introductions for several new or redesigned models, coupled with the improved sales climate for new vehicles. In contrast, General Motors lowered its 2011 outlays by 16.1% to $1,784.1 million. Q4 media budgets dropped 24.7%. As factory support has been trimmed, GM dealers have been bearing a larger share of the overall marketing effort.
L’Oreal investments in 2011 rose 18.1% to $1,343.5 million as the company expanded marketing support for the L’Oreal Paris, Maybelline and Garnier brand lines. Comcast (+11.3%, to $1,577.2 million) and Time Warner (+5.8%, to $1,279.4 million) also posted full year spending gains.
Measured Ad Spending By Category
Expenditures for the ten largest categories grew 3.3% in 2011 and reached $81,629.2 million.
Automotive was the leading category in dollar volume and finished 2011 at $13,890.4 million, up 6.3%. Category spending growth became increasingly bifurcated during the year with Tier 2 and Tier 3 dealer budgets continuing to expand and Tier 1 manufacturer expenditures flattening.
Miscellaneous Retail, which is comprised of all retail segments except Department Stores and Home Improvement purveyors, was the second largest category with 2011 expenditures of $10,019.5 million, up 4.0%. Robust ad spending during the critical year-end holiday season bolstered results.
Insurance registered the largest growth rate among the Top Ten categories with a 13.5% gain to $5,519.0 million. Aggressive competition among auto insurers to gain market share continues to drive media budgets higher.
Financial Services totaled $9,059.9 million of spending, a 3.6% increase. Growth has been fueled by the credit card segment, offsetting continued weakness in ad budgets for investment products and retail banking.
The Telecom category lost ground as 2011 expenditures fell 5.8% to $8,649.0 million. Declines were most pronounced among the leading wireless service advertisers. Aggregates expenditures from TV service providers also slowed.
Top Spending Advertisers Within Select Media
The top ten TV advertisers spent $10,115.4 million in the medium during 2011, down 0.8% from a year ago. This group accounted for 14.9% of total TV expenditures by all advertisers.
The ten largest Internet advertisers invested a total of $2,360.6 million in paid search and display campaigns, up 10.0% versus a year ago. Despite fragmentation on the web, the group accounted for 10.9% share of all Internet ad dollars.
The top ten advertisers in Hispanic Media spent $1,403.6 million during 2011, an increase of 29.2%. This group accounted for 24.7% of all Hispanic Media expenditures, the largest Top Ten share concentration of any medium.
Paid search, social media and display ads are poised to take over in lead generation, where email leaves off. But B2B marketers are particularly optimistic about social media, reports eMarketer.
In a February 2012 survey of B2B marketing and agency professionals by BtoB Magazine, 59% view lead generation as their greatest online marketing challenge.
Most respondents rely on email, with 57% saying that as an online channel, emailcontributes the most qualified leads to their businesses. But a significant percentage reported that another online channel was their biggest driver of leads, including paid search (20%) and social media (13%). Respondents from agencies were more likely than marketers to favor social or search.
Both B2B marketers and agencies felt that social media in particular has room for growth in their organizations. After email, social media was the most widely adopted of the marketing channels, but only 5% of respondents described their social media efforts as “well-optimized,” compared with the 30% that felt their email programs were optimized. A majority of 55%, said their social efforts were in the early-stage but showed promise.
The data suggests that B2B enterprises should look first to LinkedIn and blogs (both of which are increasingly ad friendly). An October 2011 study of B2B marketers worldwide conducted by marketing automation provider Pardot discovered that LinkedIn was the social media tool most successful at lead generation, followed closely by blogging.
While paid search presents another lead-gen opportunity for B2B marketers, with 18% reporting that it was their single greatest lead creator, only 11% said claimed to have a mature and well-optimized search program in place. Another 43% reported not using search marketing at all.
The Association of Business Information and Media (ABM) has released its latest Business Information Network (BIN) Report, a compilation of trade media sales data and revenue for business-to-business (B2B) media companies. Total revenues for B2B media companies in the U.S. rose from $24.7 billion in 2010 to $26.5 billion in 2011, an overall increase of 7.2%.
The BIN Report covers four B2b revenue streams, in order from largest to smallest: trade shows; print advertising; digital advertising; and data. The data category includes rich media and business information services on a subscription and transactional basis.
Digital advertising led in gains, with a leap from $5.2 billion to $6.4 billion, a boost of 22%. Print gained only 3.8% by comparison, but still represented $7.7 billion in revenues, or $1.3 billion more than digital. But that won’t last.
Trade show revenue contributed the highest revenue by stream at $10.5 billion, but showed the weakest gains at 2.2%. Still, by share of all revenue, it was the largest contributor to the industry revenue, at 40%.
Digital measurement thinktank comScore, Inc. has released its monthly analysis of U.S. web activity at the top online properties for January 2012, based on data from the comScore Media Metrix service. Tax sites (including IRS.GOV), travel sites like Kayak.com and educational sites all saw strong gains.
“In January, the average U.S. Internet user spent a record 36 hours online, reflecting the growing importance of digital media to Americans’ daily lives,” said Jeff Hackett, executive vice president of comScore. “Among the biggest category gainers in this heavy month of Internet usage were Travel and Career sites, which posted double-digit gains, and of course Tax sites as the non-procrastinators among us decided to get an early jump on getting their refunds.”
Several Travel subcategories were among the top-gainers in January, including Transaction sites which grew 28% to 3.7 million visitors. TravelPN.com led the category with 798,000 visitors (up 11%), followed by Viator.com with 642,000 (up 9%), WWTE.com with 442,000 (up 86%) and OneTime.com with 278,000 (up 48%).
Car Rental sites jumped 22% to 6.2 million visitors during the month, led by Enterprise Rent-A-Car Company with 3.2 million visitors (up 14%). Avis Budget Group ranked second with nearly 2 million visitors (up 19%), followed by Hertz with 1.3 million (up 21%), CarRentals.com with 793,000 (up 30%) and Dollar Thrifty Automotive Group, Inc. with 790,000 (up 27%).
Hotels/Resorts also ranked among the fastest-growing Travel sites. The category attracted 33.2 million visitors in January, representing an 18-percent increase. Marriott secured the #1 position in the category with 5.1 million visitors (up 30%), followed by Disney Parks & Travel with 4.8 million (up 36%), Hilton Hotels with 4.6 million (up 25%) and Expedia Hotels with 3.3 million.
Career and Education
As the new year began, Americans turned their focus to career services and education. Traffic to Job Search sites grew 27% in January to 24.2 million visitors. Indeed.com Job Search ranked as the category leader with 13.7 million visitors (up 33%), followed by CareerBuilder.com Job Search with 9.8 million (up 27%), Monster.com Job Search with 5 million (up 28%) and SimplyHired.com with 3.5 million (up 42%).
Training and Education sites also gained traction, with a sizeable increase of 23% to 14.7 million visitors. LiveCareer.com topped the list with 1.2 million visitors (up 58%), followed by AesopOnline.com with 940,000 (up 44%), FastWeb.com with 736,000 (up 30%) and Learn4Good.com with 599,000.
Tax Sites Spike as Season Begins
Visitation to Tax sites swelled in January as millions decided to get a jump on filing and hopefully getting a refund check from Uncle Sam. More than 30.7 million Americans visited a Tax site in January, up 359% to rank as the fastest growing category.
Top 50 Properties
Google Sites ranked as the #1 property in January with 187.4 million visitors, followed by Microsoft Sites with 179.2 million and Yahoo! Sites with 177.2 million. LinkedIn.com jumped 8 positions to rank #29 with 36.8 million visitors, while Everyday Health, which helped many fulfill their New Year’s resolutions to be healthier, leapt 10 positions to #38.
Top 50 Ad Focus Ranking
Google Ad Network led the January Ad Focus ranking with a reach of 92.9% of Americans online, followed by AOL Advertising (85%), Yahoo! Network Plus (84.8%), ShareThis (82.4%) and AT&T AdWorks (82.3%).
Beginning with this week’s issue, The Economist will run a section devoted entirely to China. This is only the third time in 170 years that the magazine has created a country-specific section. But as Editor in Chief John Micklethwait told Audience Development, “China is getting so large that trying to constrain it in a section like geo-politics was difficult.”
China is a broadly-interesting topic, Micklethwait believes, affecting the magazine’s entire global readership. The British-born magazine took the same stance during WWII with its still-existing U.S. section.
Circulation of The Economist within China is a miniscule 3,740, and Micklethwait is not counting on it growing; rather, he is counting on it increasing readership long-term in the U.S., among “That group [that] wants to know more about China than what they’re being told.”
In addition to mainstream business and politics, The Economist has reporters on the ground to cover rural life, social changes and emerging trends.
The Economist claims a 2011 circulation of 1,486,838, and a modest year-over-year growth of 3.03%. But Omniture clocked the digital edition with a swift 7,610,593 unique visitors in December 2011, and 34,124,539 page views.
Mergers and acquisitions in media were up 9% in 2011, a third consecutive year of growth, reports the investment banking firm Jordan, Edmiston Group (JEGI). As JEGI reports—
• The interactive markets (B2B, B2C, online media and technology, mobile media technology, marketing and interactive services) accounted for 71% of deal activity and 65% of value;
• Consumer magazines were up 23% in number and 15 times in deal value;
• Exhibitions and conferences were up 39% and 249%, respectively.
Total value of 896 deals represented $47 billion in value, which was up $4 billion from 2010, but trailing a boom year in 2007 with $104 billion in deals. The B2B market was fairly dead with 14 deals totaling $50 million. Consumer magazines were far more lively, including a $38 million investment in Martha Stewart Living Omnimedia by JC Penney. Some of the most notable deals fell largely outside of media, the largest being eBay’s purchase of GSI Commerce, an eCommerce platform provider for $2.4 billion. JEGI expects vigorous 2012, driven by the “torrid pace” as companies seek assets to drive growth and revenue streams.
Marketo has released an online handbook that gives advice and planning tip required to measure and improve B2B marketing's impact on revenue and profit. The report, "The Definitive Guide to Marketing Metrics and Analytics," contains ROI calculations and advice on how to plan for and apply marketing ROI processes, the keys to establishing a measurement framework, and the importance of using revenue analytics to show marketing's aggregate impact on revenue.Some recommendations include:
- Identify measurement priorities in advance of campaigns and plan campaign-specific measurements concurrent with campaign planning.
- Different types of leads will move through the revenue stages differently; some will have better conversion rates than others, some will convert faster than others.
- Apply the insights from prior measurements in the current cycle of planning
Prophet’s 2011 State of Marketing Study found that senior executives in both marketing and general management are grappling with a variety of pressures as they seek to drive growth and build brand equity.
A key finding of the study is that executives still believe, despite increasing evidence to the contrary, that the company (rather than the customer or other stakeholders) is the primary “owner” of the brand. Overall, 66% of respondents believe the company owns the brand. 71% of non-marketers were of the view that the company — not customers — is the primary “owner” of the brand. It was a view more prevalent in the business-to-consumer environment than in business-to–business, 65% and 59% respectively. 54% of the marketers surveyed had that view.
All respondents also recognize that the dramatically changing dynamics between company and customers and the broader network of influencers are causing their control over their brands to slip away. Brand relationships are now influenced by networked brand building, characterized by multiple channels and influencers, according to the Prophet analysis.
Given this reality, more than 40% of the business-to-consumer respondents said they believed they would have less control over their brands over the coming three years than today. By contrast, only 28% of business-to-business participants were of that view.
About this chart: Source: Folio Magazine. "2011 Folio: B-to-B CEO Survey," May 2011. About their data: The survey sample of 1,000 was selected by Folio and Readex Research from domestic subscribers with executive management titles in b-to-b and con-sumer publishing. Data was collected via mail survey from January 14, 2011 to February 28, 2011. Results were filtered to include only those who say they are involved in b-to-b publishing. The margin of error based on those 217 respondents is plus or minus 6.2 percent at the 95 percent confidence level.