By that point, a slight majority of internet users aged 14 and older in the Asia-Pacific region will be purchasing items on digital devices, per the forecast, though buyer penetration will be greatest in Western Europe (69%) and North America (68.8%).
Some positive developments from the CIO perspectives include:
- 51% agreeing that their marketing employees understand technology (up from 48%); and
- 41% agreeing that the marketing department does not provide adequate levels of business requirements, down from 46% in 2012.
According to the report, mobile captured 56% of Facebook ad budgets in Q2, a substantial increase from less than 40% share a year earlier.
Facebook reported in Q1 that mobile represented 59% share of its ad revenues. Recent data from comScore suggested that in May, almost 1 in every 10 minutes spent online was with the Facebook app. Indeed, 94% of mobile time spent with Facebook was in-app rather than via browser, per comScore figures examining April 2014 data.
Meanwhile, singling out a couple of major verticals, the Nanigans study reports that CTRs more than doubled year-over-year among its e-commerce customers (to 0.3%), while increasing more than six-fold among its gaming customers (to 0.58%).
Source: Facebook [pdf]
Notes: Facebook’s advertising revenues grew by 67% year-over-year in Q2 to almost $2.7 billion, of which mobile comprised 62%, up from 41% share a year ago. Some 63% of Facebook’s more than 1.3 billion monthly active users accessed the site daily, translating to 829 million daily active users (DAUs); roughly 79% of those were mobile DAUs.
Things are going well for NASCAR’s top team, Hendrick Motorsports, which includes some of the sport’s top drivers, including Jeff Gordon, Kasey Kahne, Jimmie Johnson, and Dale Earnhardt Jr. But a closer look at the value and profit of the other top teams reveals a sport that is trending in the wrong direction.
According to Forbes.com and its valuations of NASCAR’s top nine teams, the current value of Hendrick Motorsports ($348 million) is relatively unchanged since 2010 ($350 million). However, the average team has seen a 31.1% drop in profit since 2010 which has translated into an average team value of $139.7 million, down 16.4% during the same span.
NASCAR’s popularity surged up until 2007, but then the bubble burst. Forbes blames the recent decline in values on plummeting attendance and TV ratings.
StubHub has revealed that it’s been the victim of a global fraud operation that’s lasted longer than a year. Rather than being hacked, however, criminals obtained user details from other websites and keylogging software, then proceeded to make purchases on the eBay-owned ticket site. Company official Glenn Lehrman has told Reuters that authorities in the US, Canada and the UK will conduct arrests later today, at which point more details will be released. Worried users of the service should relax, for the moment at least, since the company has promised that any unauthorized transactions were spotted and refunded back in 2013.
Filed under: Internet
If you’re already defending your choice to buy generic against an onslaught of high-profile ads, there’s new research to further bolster your case.
A study published at the National Bureau of Economic Research found that the more informed a consumer is about a product, the more likely they are to buy the generic or store brand, whether that’s medication or baking supplies.
As Bloomberg View reports, there’s a correlation between who knows the most about a product and who buys the (often cheaper) generics.
The researchers looked at seven years’ worth of consumer data and found that expert behavior was markedly different from regular shopper behavior. Pharmacists, for instance, went for the brand-name (also known as “national brand”) medication only 8.5% of the time, while the less knowledgeable shopper went for it 26% of the time.
Similar patterns arose when chefs went shopping for pantry staples like salt and sugar: The brand-name products made up 40% of total sales, but chefs bought only 23%.
Bloomberg View highlights a particularly intriguing pattern:
It’s interesting that health-care professionals show no special interest in buying store-brand salts, sugars or! baking sodas; for those products, their choices look a lot like most other consumers’. And while chefs do show a preference for store-brand headache remedies, it’s not nearly as great as that of health-care professionals. For the most part, people’s knowledge is domain-specific.
It’s also noteworthy that people without a college education were the most likely to shell out for brand-name products, although the study didn’t draw conclusions on that point.
The takeaway is simple: Those who know best tend to bypass the brand names for a likely less expensive alternative — so we, the “average consumers,” might be wise to do the same.
Online video ads are one of the fastest-growing ad mediums, far outpacing growth in spending on television and other digital formats. Online video ad viewing exploded in 2013. Over 35 billion video ads were viewed in the U.S. in December.
It’s not hard to understand what makes online video so compelling to advertisers. Video ads provide a level of visual and narrative richness that nearly equals television, while offering all the advantages of digital, including advanced targeting, tracking, and increasingly, automated buying of video ad units.
In a new report from BI Intelligence we explore the key drivers of the skyrocketing growth of video ads, examine the cost and performance of the emerging digital ad format, and look at the major players that are shaping the industry.
Here are some of the key trends we explore in the report:
- Online video ad revenue will reach nearly $5 billion in 2016, up from $2.8 billion in 2013, while TV ad revenue will decline by nearly 3% per year during the same time period.
- Video ad views exploded in 2013, topping over 35 billion views in December, averaging over 100% year-over-year monthly growth during the year.
- Online video ads are significantly more expensive than other formats, but prices are steadily declining as more publishers rush into video, and placements open up.
- Video ads have an average click-through rate (CTR) of 1.84%, the highest click-through rate of all digital ad formats.
- Viewability, the question of whether video ads are actually seen by multitasking online viewers, has emerged as an issue, but we believe that overall demand for online video is too high for viewability to put too much of a crimp in the video ad market.
- Streaming devices and connected TV accounted for just 2% of online video ad views in the fourth quarter of 2013, but companies like BrightLine are experimenting with formats to grow this new niche market.
Source: KPMG International / Consumer Goods Forum [pdf]
Notes: Some 56% of consumer goods executives identify data analytics as “very” or “critically” important to their strategy this year, with omni-channel/digital strategy (54%) and regulatory compliance (54%) closely following. Almost half of respondents also see data security and privacy as a strategic priority this year – with this expected to rise alongside the increasing amount and use of data.
Dr. Augustine Fou is Digital Consigliere to marketing executives, advising them on digital strategy and Unified Marketing(tm). Dr Fou has over 17 years of in-the-trenches, hands-on experience, which enables him to provide objective, in-depth assessments of their current marketing programs and recommendations for improving business impact and ROI using digital insights.
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