digital channels

Digital Music Sales Grow While Overall Industry Declines – eMarketer

source: http://www.emarketer.com/Article/Digital-Music-Sales-Grow-While-Overall-Industry-Declines/1010152

Revenues from digital channels expected to hit $11.6 billion in 2016

There’s no way around it—the music industry faces a serious challenge in maintaining revenues in the digital era. Audiences are consuming music through new channels that are still in the process of being monetized, such as online radio, and piracy remains a steady threat to the bottom lines of music companies across the globe.

Estimates from research firm IBIS World, as cited by Siemer & Associates, project that worldwide revenues for music will fall from $27.6 billion this year to $26.3 billion by 2017.

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Thursday, August 22nd, 2013 news No Comments

drag2share: Which Digital Channels are Most Effective at Customer Acquisition

source: http://feedproxy.google.com/~r/businessinsider/~3/L5igeZYUM74/social-media-lags-as-direct-customer-referrer-but-could-be-fueling-organic-purchases-2013-7

E-commerce retail sites are acquiring just .18% of their online customers via Facebook and Twitter, according to a study released June 25 by Custora.

The study analyzed Google Analytics data linked to 72 million customers — an online visitor who purchased something — from 86 U.S. online retailers across 14 industries.

(E-commerce sites typically add tags to their links across the Web, in both paid and non-paid placements, in order to track the source of their leads and sales in Google Analytics.)

Organic search continues to grow as a channel, accounting for nearly 17.53% of customers acquired in the first half of 2013, according to the study, led by data scientist Aaron Goodman.

E-mail has more than quadrupled its share of customer acquisition volume over the last four years, making it the fastest-growing among all the channels tracked in the study.

Other search-related channels also performed well.

Social media ranked low as a customer-generation channel. That said, Facebook is showing some potential. In 2009, less than .01% of new online retail customers came from Facebook, compared to .17% so far this year.

Twitter has never accounted for more than .01% of new retail customers during the five-year study. Worse, a Twitter customer’s lifetime value was 23% less than the average across all customer sources.

There is more than one way to interpret Custora’s data.

One could conclude that social! media i s ineffective as an e-commerce customer acquisition tool. But another way to look at it is that online retail sites simply aren’t putting a lot of resources into marketing themselves on social media, and are favoring search and e-mail channels instead.

Also, even if social media still isn’t there yet as a reliable direct source of customers, there’s no way to tell how many customers were in fact influenced by content they saw on social media, and visited retailers’ sites later.

Download the chart and data in Excel.

BII customer acquisition channels


drag2share – drag and drop RSS news items on your email contacts to share (click SEE DEMO)

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Wednesday, July 17th, 2013 news No Comments

Retailers Weigh in on the Digital Channels That Best Drive Store Traffic

Source: http://www.marketingcharts.com/wp/interactive/retailers-weigh-in-on-the-digital-channels-that-best-drive-store-traffic-and-sales-29497/

Some retailers aren’t sold on the concept of digital channels being the primary driver of future growth, at the expense of stores. But most do see the value of digital channels in driving traffic to stores – and they have some thoughts on which work best once the consumer is actually in the store. Results […]

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Monday, May 20th, 2013 news No Comments

Not 1, Not 2, Not 3, But 4 Display Ads Per Pageview – Shame on You Facebook

Updated May 12, 2012. Freddy Nager, Prof of Integrated Marketing at UCLA sent me a screen shot showing 9 display ads per page. The unscupulosity of Facebook is at an all time high – right up to their IPO.

THANKS Freddy Nager @AtomicTango, Prof of Integrated Marketing, UCLA for the screen grab of 9 and 10 ads per page.

http://atomictango.com/2012/04/20/myspace-facebook-continued/

Updated February 3, 2012.  This is how Facebook is growing ad revenues – SEVEN DISPLAY ADS PER PAGE – EVIL!

facebook ads

 

 

But despite this kind of “cheating” their revenues are decelerating. And there is the “danger” of advertisers getting smart and changing from paying on a CPM basis to paying only on a CPC basis — paying only when they get the click. That would mean Facebook’s revenue could drop off a cliff.

Source: http://www.businessinsider.com/chart-of-the-day-facebook-revenues-are-decelerating-2012-2

Facebook revenues decelerating

 

Updated:  FIVE (count ’em) 5 ads per page – SHAME on you Facebook – the highway robbery gets worse.  Advertisers, quick, go to CPC (don’t pay CPMs any more).

Multiple ads on the same page run up the impression numbers, but artificially depress click-throughs because even if they wanted to, users can only click on one ad at a time. Shame on your Facebook for overtly and systematically robbing advertisers who pay on a CPM basis.

But then again shame on you advertisers who still pay CPMs when you can easily click a radio button to select CPC — Facebook even suggests a range for you automatically (see inset below).

What is the advantage of paying by CPC (cost per click) instead of CPM (cost per thousand impressions)?  Well, remember the old ad industry joke “I know I am wasting half my ad dollars, I just don’t know which half” — well, now you know.  In fact, you now know you are wasting 99% of your ad dollars to wasted impressions that get no action/clicks from users AND you know which 99%.  See infographic below. So stop paying CPMs and start paying CPCs TODAY. Your ad budget will thank you!

Just how DISMAL are  Facebook advertising metrics and benchmarks (click to see )?

According to data from comScore, in Q3 2010, Facebook served 297 billion display ad impressions giving it 23% of the U.S. market for display ads. In digital channels, since there is no longer the physical limitation of time (airtime on TV) or space (area to put ads on dead-tree pulp) companies can create “inventory”  out of thin air and magically increase revenue on the backs of advertisers still willing to pay for impressions. I guess it really is caveat emptor.

chart of the day, share of online ad impressions, nov 2010

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Thursday, November 11th, 2010 analytics, digital, display advertising, marketing 1 Comment

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

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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