Though all of these value-adds justify the command for higher CPMs called for by publishers offering native advertising opportunities, the greater focus on engagement might have brands calling for pricing that follows suit. One such model is CPE, which native ad providers such as YouTube and Twitter offer. Such a pricing structure is a direct reflection of the metric an Online Publishers Association (OPA) and Radar Research study found the majority of US marketers used to measure native advertising: engagement.
2012 has been quite the year for technology and its advertising.
As usual, Unruly Media created a list of the most-shared tech ads in social media of the year.
You may be surprised to find that Samsung made the list, while Apple wasn’t included at all.
Google wins for having the most spots on the list, with some of their April Fool’s ads being featured.
10. Google: Gmail Tap — 170,043 shares
Facebook shares: 137,232
Twitter shares: 32,532
Percent of shares in English: 83
Ad Agency: In-house
Google released this April Fool’s Day ad introducing a fake new keyboard that uses Morse code. It even features LL Cool J, referred to by his real name, as the product lead.
9. Google: Valentine’s Day Doodle — 197,073 shares
Facebook shares: 97,534
Twitter shares: 99,183
Percent of shares in English: 62
Ad agency: Saatchi & Saatchi
Google outdid itself this year with its doodle for Valentine’s day. The minute-long cartoon is a cute depiction of a boy trying his hardest to impress a girl he likes.
8. Microsoft: Surface — 316,777 shares
Twitter shares: 21,063
Pecent of shares in English: 66
Ad agency: In-house
Microsoft was praised for being more innovative with its ads this year, but unfortunately increased creativity has not (yet) led to a significant increase in sales.
Last week, Verizon filed a patent for a set-top box that detects what you’re doing while you watch TV, and serves you advertising accordingly. Ew, weird, companies watching what I do while I consume content. Big brother! Chill, son.
“Methods and Systems for Presenting an Advertisement Associated with an Ambient Action of a User” describes a system by which a device captures information about what you’re doing while enjoying TV, movies, etc, and uses it to target advertising to you. Using a “a depth sensor, an image sensor, an audio sensor, and a thermal sensor” the system would be able to detect whether you’re fiddling with your phone, interacting with another person, as well as performing any of:
eating, exercising, laughing, reading, sleeping, talking, singing, humming, cleaning, and playing a musical instrument.
Now, this might seem kind of creepy, but there’s a few important points to remember before you freak out and sound the privacy alarm. First, companies like Facebook, Google, etc, are capturing all sorts of information about what you’re consuming online and using it to serve you targeted advertising. Second, any system like this would almost certainly require you to opt-in before peeking into your life. Besides, how many of these patents actually turn into products, anyway? [USPTO via Ars Technica via Betabeat]
However, as search is second only to email as the most popular smartphone task, there is certainly value in using mobile for customer acquisition and awareness.
The survey also asked respondents which mobile marketing tactics they use.
Reflecting the fact that social media is a hugely popular activity on smartphone, 66% of marketers said they invest in social mobile advertising.
Display was the second most popular activity (44%) followed by mobile web landing pages with promotions and location-targeted advertising (both 37%).
Interestingly, only 22% said they invest in mobile paid search, which suggests advertisers are missing the opportunity presented by this channel. We’ve seen numerous surveys which show that although mobile search spend is increasing rapidly, it’s still a relatively untapped area for marketers.
For example, data from Marin Software revealed that mobile devices accounted for 13% of search spend in June 2012, yet took a 20% share of clicks.
Forrester also asked respondents what KPIs they use to assess their mobile marketing initiatives.
The most common answer was web traffic and visitors (63%), followed by CTR (58%), brand awareness (54%) and revenue (44%).
The report takes this as further evidence that too many mobile advertisers are using desktop marketing tactics and haven’t yet adapted to the opportunities presented by mobile.
It recommends that marketers use mobile to deliver highly contextual, relevant information that directly engage individual consumers.
Another great chart from Horace Dediu at Asymco. He looks at the advertising budget of Apple, Samsung, HP, Dell, Microsoft, and Coke. Why include Coke? Because it’s a huge advertiser, and its “primary cost of sales is advertising.”
As you can see, Samsung is blowing all the companies away in advertising and marketing.
Not a bad price to pay, if it means you get to become the world’s biggest smartphone company. Certainly HTC wishes it had Samsung’s marketing budget.
1. the overall advertising “pie” will shrink because the new efficiencies enabled by “digital” will allow advertisers to spend less (e.g. media placement dollars) and still drive the same or greater business impact
2. there will be a continued shift to digital, especially for companies that have products that benefit from more consumers coming online to do more research — e.g. bigger ticket items or items that require more consideration and research
3. because of the massive reach of Facebook, it will siphon branding dollars that used to be allocated to traditional one-way mass media such as TV; but in the short term magazines and newspapers will “hurt” the most, since they can’t even offer competitive mass reach any more – relative to Facebook.
Google is no stranger to the business of discounts and special offers, but it looks like it’s decided to reach outside the company to further bolster its offerings. The company confirmed today that it has acquired the Cambridge, Massachusetts-based marketing firm Incentive Targeting for an undisclosed sum. While not offering too much in the way of specifics, Google said in a statement that “we look forward to working with Incentive Targeting in our ongoing efforts to help consumers save time and money and enable retailers deliver relevant discounts to the right customers.” For its part, Incentive Targeting has said that it “set out to do for retail couponing what Google had done for online advertising: make it simple, relevant, measurable, and effective,” and to that end it has developed a variety of tools for retailers and manufacturers alike, all designed to deliver coupons and discounts in a more targeting manner. You can find the company’s full statement on its website.
Source: Incentive Targeting
Facebook has managed to get two bearish analysts to change their mind.
Carlos Kirjner at Bernstein Research and Rich Greenfield at BTIG have both upgraded the stock this morning. We’ve written up Greenfield’s note here, if you want to read it. (In short, he thinks Facebook’s plan to stuff ads in the mobile news feed is going help it beat Q4 estimates.)
As for Kirjner, he’s rating the stock “outperform,” and has a $33 price target.
Here’s why in a nutshell:
We think consensus is underestimating Facebook’s revenue growth potential over the next 12-24 months. We think Facebook is on path to beat consensus revenues over the next 12-24 months, delivering $6,976 million in 2013, 9% higher than consensus’ $6,388 million, and $8,650 million in 2014, or 7% higher than consensus’ $8,078 million. Further monetization of (mobile) Newsfeed inventory will be the main driver of growth, as we believe that for the next 18-24 months Facebook probably can increase the number of ad impressions per user per day with limited chance of seeing material deterioration in user experience. We also believe that at this point and for the near-to-medium term, its revenue growth trajectory will be the main driver of Facebook’s stock performance. In addition to mobile, further monetization of the PC Newsfeed and the positive impact of the Facebook Exchange on right-hand-side column CPMs will help drive growth.
Beyond this, Kirjner believes Facebook’s social advertising initiatives can work:
Social, new businesses opportunities and the platform remain options fo! r furthe r upside for the next two years and beyond. The successful monetization of Newsfeed inventory and introduction of the Facebook Exchange have given Facebook an 18-24 month runway to develop new revenue streams from new formats (e.g., gifts), to work with advertisers and third parties such as Datalogix and Nielsen to improve (online brand) advertising ROI and its measurement, which would enhance its long-term pricing, and to continue pushing adoption of social across the Web with its platform play, based on Facebook Connect and the Open Graph Protocol. In other words, we still think of Facebook as a distinctive display advertising business, but mobile and the exchange make it better and larger, and extend the time horizon Facebook has to realize the potential of new business opportunities and of social advertising.
The bottom line here is that Facebook has shown it’s willing to build a big business, something analysts didn’t think would happen. And now they’re upgrading the stock. They are still cautious about how it all plays out, but overall there is reason to be positive about the stock for the first time since it became publicly traded.
Mobile users are heavily engaged on their devices at the shopping mall, according to a recent report by JiWire, a location-based mobile advertising company.
JiWire’s data flows from its network that serves ads to some 50 million mobile users. Enabled by public Wi-Fi access at thousands of sites, JiWire’s ads allow advertisers to target users at malls, restaurants, retail stores, school campuses, airports, and other sites.
JiWire’s latest data reinforces some commonly held ideas about mobile device use, but challenges others. For example, ad requests were heaviest at shopping malls— more so than at restaurants, for example— revealing how mobile devices have become a valued tool for shopping and leisure.
Other data showed surprising patterns. Ad requests were higher at hotels than at retail stores. And, finally, big-box stores saw more mobile ad requests than specialized retailers like clothing and electronic stores, despite all the hand-wringing over showrooming.
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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