advertising revenues

US Traditional Media Outlook, 2013-2017

June 6, 2013 by MarketingCharts staff

PwC-US-Traditional-Media-Outlook-2013-2017-June2013PwC has issued its annual “Entertainment & Media Outlook” report, which contains projections for online and offline media markets through 2017 across various components including advertising revenues and consumer spending. The outlook for traditional media markets is similar to previous forecasts in that TV and out-of-home advertising have the healthiest future, while radio continues to grow at a modest pace and the outlook for print continues to be dim, although losses may slow.

  • TV advertising: CAGR = 5.1%

TV advertising spending is projected to grow from $63.8 billion last year to $66.8 billion this year and $81.6 billion in 2017.
TV is the largest advertising medium in the US, accounting for 38% of total advertising revenues last year. Terrestrial broadcasting remains the domain of the big 4 networks (ABC, CBS, NBC, and Fox), but the multichannel sector (led by TBS, Discovery, and USA Network) represented 35% of TV advertising revenues last year.

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Tuesday, June 11th, 2013 news No Comments

Mobile Continues To Eat Up Media Consumption Share

Source: https://intelligence.businessinsider.com/welcome

Mobile has tripled its share of U.S. consumer’s media consumption since 2009. According to eMarketer, mobile’s share jumped from four percent in 2009 to 12 percent this year.

Mobile’s gains came at the expense of traditional mediums like TV, radio, and print. Online’s share held steady.

Meanwhile, mobile advertising revenues are only about 1 percent of U.S. ad spend. Many observers take this disparity as evidence that mobile ad revenues are set to skyrocket. However, mobile doesn’t need to gain parity for mobile ads to be a huge opportunity. Furthermore, the time-gap argument glosses over the real challenges: smaller screens, consumers’ resistance to mobile ads, and an incredibly complex ecosystem. 

Mobile Share Of Consumption

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Wednesday, October 24th, 2012 Uncategorized No Comments

Facebook’s Revenue Deceleration Is Over! (FB)

Source: http://www.businessinsider.com/chart-of-the-day-facebook-revenue-2012-10

The reason Facebook tanked after its IPO is that revenue growth decelerated for the past several quarters. 

That’s not good for a story with Facebook’s revenue and profit multiples. It needs to be growing very fast.

So it was very good news for Facebook today, when it reported earnings that showed the company has finally stabilized revenue growth – 32% last quarter and 32% this quarter. You can see this in the chart below.

What this chart doesn’t show is the even better news that Facebook has actually re-accelerated its advertising revenues – up to 32% y/y this quarter from 28% y/y last quarter.

chart of the day, facebook revenue growth, oct 2012

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Tuesday, October 23rd, 2012 news No Comments

Mobile Advertising Revenues Are Rising Like Crazy

Source: http://feedproxy.google.com/~r/businessinsider/~3/jMktwdR0_Sk/report-mobile-advertising-revenues-are-going-crazy-2012-10

Mobile advertising is on fire.

According to a report released today by the Interactive Advertising Bureau, mobile ad revenues have increased by 92 percent in the last year, rising from $344 million in Q2 2011 to $661 million in Q2 2012.

Digital advertising revenues had an increase of 14 percent in the first six months of 2012, growing from $14.9 billion in 2011 to $17 billion in Q2 2012. Although it’s interesting to note that 73 percent of digital advertising dollars are spent by 10 ad-selling companies, and the remained is spread across approximately 75 other companies.

In spite of the rapid growth of digital and mobile advertising, it’s search that’s on top, accounting for 47 percent total digital revenues, totaling $4.1 billion.

Here’s a breakdown of the data:

Digital Advertising Spend Across Formats

Historically search has retained the largest share of advertising revenues, but as the chart below shows, even though mobile’s the youngest format, it had the largest percent revenue between 2010 and 2012.

Historic Digital Ad Revenue

 

 

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Thursday, October 11th, 2012 Uncategorized No Comments

Here’s How Much Money The New York Times Was Losing On About.com (NYT)

Source: http://www.businessinsider.com/heres-how-much-money-the-new-york-times-was-losing-on-aboutcom-2012-8

new york times building, new york times, nyt building, nyt, night shot, nyc, sept 2011, business insider, dng

IAC has agreed to buy About.com from the New York Times for $300 million in cash, according to Bloomberg, and no wonder—the encyclopedia site was losing barrowloads of cash.

But the sale won’t fix NYT’s overall digital problems—it’s still seeing declining digital revenues, which mostly come from selling ads.

NYT bought About for $410 million in 2005, in one of those great, doomed attempts to move a newspaper brand into the digital age.

Here are About’s most recent top and bottom lines, according to Bloomberg, almost all of which come from ad sales:

The website’s revenue fell 8.7 percent to $25.4 million last quarter, and it posted an operating loss of $186.8 million

IAC boss Barry Diller will combine About with Ask.com. Hopefully, he has a plan to fix About’s pitiful revenue side.

Meanwhile, here’s the picture at the Times before the sale, per the most recent 10-Q:

Digital advertising revenues decreased 4.0% and 7.2% in the second quarter and first six months of 2012, respectively.

That portends more structural changes at the paper in the near future.

Related:

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Monday, August 27th, 2012 news No Comments

TV Ad Revenues Drop 12% Online ad revenues grew 8% from 2008 to 2009

With the greater efficiencies of digital, the overall “pie” will shrink because fewer dollars are needed to achieve the same effect. In other terms — for every DOLLAR pulled out of traditional and general advertising, 20 – 50 CENTS is put back into “digital” channels and tactics. Thus the overall pie will continue to shrink while some parts grow and other parts shrink dramatically.

Source: http://www.marketingcharts.com/print/magazine-ad-revenues-pages-fall-in-q1-2010-12574

Ad pages also declined in Q1 2010 compared to Q1 2009, falling 9.4%, according to the Publishers Information Bureau (PIB).

Source: http://www.marketingcharts.com/television/tv-ad-revenues-drop-12-12613/yankeegroup-media-averages-apr-2010jpg/

Total US TV and online advertising revenues dropped 12% in 2009, although online revenues independently grew, according to research from The Yankee Group.

TV Revenue Decline Worse than Expected
In 2009, the total US TV and online advertising market totaled $67 billion, compared to $77 billion in 2008. TV advertising, by far the largest portion of this combined market, was hit especially hard by reductions in spending during 2009.

The TV ad market declined 21.2%, from $52 billion to $41 billion, between 2008 and 2009. This was significantly more than the 4% (or roughly $2.1 billion) decline The Yankee Group originally forecast in June 2009. As highlighted below, a shift in consumer attention primarily drove the steep decline in the TV ad market.

TV’s Loss is Internet’s Gain
Internet advertising grew during 2009, as a result of consumers spending more time online and less time watching TV. Online ad revenues grew 8.3% between 2008, when they totaled $24 billion, and 2009, when they totaled $26 billion.

Media Consumption Dwindles
The total amount of time consumers spent on media per day actually declined 14.3% between 2008 and 2009. Consumers spent about 14 hours per day on media in 2008, but only 12 hours per day in 2009. Most of the decline in media consumption was represented by declining TV viewership.

Americans spent an average of three hours and 17 minutes per day consuming TV and video in 2009, compared to an average of four hours and 13 minutes a day consuming online content. In addition, average daily mobile phone use reached one hour and 18 minutes. Thus Yankee Group advises marketers and advertisers to increase their focus on online and mobile promotions.

Annual US Ad Spending Falls 12.3%
Total US advertising expenditures (including print, radio, outdoor and free standing inserts) fell 12.3% in 2009, to $125.3 billion, as compared to 2008, according to Kantar Media.

Some of Kantar’s findings echo findings from the Yankee Group. Internet display advertising expenditures increased 7.3% for the year, aided by sharply higher spending from the telecom, factory auto and travel categories. Meanwhile, spot TV advertising fell 23.7%, Spanish language TV advertising dropped 8.9%, network TV fell advertising 7.6%, and cable TV advertising only fell 1.4%.

About the Data: Statistics are taken from the updated Yankee Group “2009 Anywhere Advertising Forecast.”

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Thursday, April 15th, 2010 news, statistics 1 Comment

trends – coupon sites, network TV sites

coupon sites: definitely headed upward with a spike in Dec 08.

coupon-sites

network TV sites are seeing healthy increases, likely due to “view full episodes” on their websites – but even this increase in traffic will not replace the advertising revenues lost on network television

tv-network-sites

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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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