Certain impressions are generally more effective, and therefore more valuable and less wasteful of ad spend, than others, according to a research brief from Casale Media. The report found that placement above-the-fold were almost seven times more effective at generating a click-thru than ads delivered below-the-fold.
The report also found that banner blindness occurs fast: Users are three to four times more likely to act on an ad if it is the first or second one they see during their session. Ad effectiveness plummets as the user progresses through their online viewing.
As well, the study found that repetition works -- to an extent. Ads shown five times or more to a user were 12-14 times more effective than ads shown less than five times. However, marketers need to apply frequency capping to prevent oversaturation.
Report: U.S. Advertising Market to Top $200 Billion by 2014
Media advertising rebounded in 2010 with a 5.8 percent advance following a cumulative 11.9 percent decrease from 2007 to 2009, according to PwC’s "Global Entertainment and Media Outlook, 2011-2015." Double-digit gains were recorded in Internet advertising, television, cinema advertising, and video games, and the estimated growth rate from 2011 to 2015 is 4.2% compounded annually. The U.S. advertising market will exceed $200 billion by 2014, and reach $207 billion by 2015. Some other findings:
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Television viewing continues to increase despite people’s spending more time online. In fact, with many people watching television simultaneously with being online and participating in social networks, growing Internet usage is contributing to increased TV viewing.
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Advertisers seeing the end of the recession increased their TV budgets to position themselves to benefit once the economy actually improved. Internet advertising will be the fastest-growing category during the next five years, with a 13% compound annual increase.
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The Internet will overtake newspapers in 2012 to become the second-largest advertising segment, behind television.
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Television advertising will continue to benefit from steady viewing and its association with Internet usage. In addition to underlying growth, we expect double-digit increases in 2012 and 2014 from advertising associated with major international sporting events in those years. Overall growth will average 6.5 percent compounded annually through 2015.
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In 2010, the publishing sector showed overall resilience and growth in some segments and markets. Newspapers and consumer magazines each posted small gains in 2010 following steep declines in prior years.
Chart: Top Marketing Priorities, 2011 v. 2012
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About this chart: Source: Forbes, "Bringing 20/20 Foresight to Marketing," June 2011.The report is based on a survey of 321 executives and some one-on-one interviews conducted by Forbes Insights in March and April 2011.Forbes insights, in association with the Coremetrics, an IBM company. Respondents are involved in marketing or corporate management at large businesses in the U.S. and the U.K. -- all worked for companies in industries that are typically major online marketers, including retail, travel/hospitality, financial services, and technology/media/telecom. More than three quarters of the companies (77%) had annual revenues of $1 billion or greater, and the remaining 23% had revenues of at least $250 million. More than a quarter of respondents held C-level titles, including CEO (15%) or CMO (11%), and the rest had senior titles including senior vice president, vice president, director of marketing, and marketing manager.
Chart: Shifts in Marketing Spending in 2012 Budegt
Chart: Cost of a 30-Second Television Ad Spot, Q1 2011
About this chart: Source: The Nielsen Company, June 2011. "State of the Media: Trends in Advertising Spend and Effectiveness."
Report: 52% of Marketers Say Customer Retention is Top Priority
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Marketers’ priorities are customer-centric, according to a report from Forbes Insights, "Bringing 20/20 Foresight to Marketing." More than half, 52% of a group of 231 marketing or corporate managers, cited customer retention as their top current priority, followed by customer acquisition (38%), and customer profitability (29%), and these remain top priorities for 2012, as well. Their budgets are reflecting these priorities as well, with four in ten executives (39%) dedicating the largest chunk of their funds to customer retention. Customer acquisition runs a close second (36%). The survey asked about budgeting in 2012 as well. Over the next year, 56% of respondents said that they will increase their online marketing spend, 54% will increase their social media spend, and 50% will increase their mobile marketing spend.
New ABC Metrics Combine Newspapers’ Print and Digital Circulation
Chart: Agency Revenue Growth, 2001-2010
Chart: 2010 Agency Revenue by Discipline
AdAge: Top Ad Agencies by Global Revenue, 2010
