go-Digital Blog on Digital Marketing

Mobile Accounts for 7 Percent Of The U.S. Digital Ad Market

Source: http://feedproxy.google.com/~r/businessinsider/~3/D4Haim_wFHI/chart-mobile-accounts-for-7-percent-of-the-us-digital-ad-market-2012-10

Mobile almost doubled its share of the U.S. digital ad market through the first six months of the year. According to IAB, U.S. mobile ad revenues were $1.2 billion in the first half of the year and 7 percent of total U.S. digital ad revenues, up from 4 percent a year prior.   

Total 2011 U.S. mobile ad revenues were $1.6 billion, according to IAB. Half-year revenues of $596 million were about 38 percent of the year-end total. Holding all else equal, if the U.S. market grew at the same rate this year, 2012 mobile ad revenues would be $3.2 billion.     

Please follow BI Intelligence on Twitter.

Join the conversation about this story »

Business Insider Intelligence is a new research and analysis service for real-time insight and intelligence about the Internet industry. The product is currently in beta. For more information, and to sign up for a free 30-day trial, click here.

Data is starting to trickle in and shape our understanding of the nascent mobile ad market. According to data from Flurry Analytics, 25- to 34-year-old females are the most valuable demographic for advertisers and publishers (as measured by the underlying click-through and conversion rates).

This is not surprising: Young people have adopted smartphones at a much higher rate than their parents. However, mobile CPMs will eventually even out as penetration picks up amongst older age groups. Furthermore, women should be more valuable because they historically have controlled household expenses and there is some evidence that they use smartphones more than men while shopping.

Finally, the eCPMs strike us as pretty high—even as smartphone usage has exploded, demand seems to have held up.

Feedback? Questions? Send us an email

Please follow Business Insider on Twitter and Facebook.

Join the conversation about this story »

See Also:

• Smartphone Sales Will Reach Nearly 1.6 Billion Units By 2016
• Here’s What Retail Customers Are Actually Doing With Their Smartphones
• Online Video Advertising Takes Off

This chart (below) from ISI Group tells you all you need to know about the fate of cable TV in the age of the iPad: Since Q1 2010, 2.3 million people have stopped subscribing to pay TV as delivered by cable TV companies such as Cablevision, Comcast, DirecTV, Time Warner Cable, Dish, Verizon, and AT&T.

Currently, only 41.5 million Americans watch TV on pay cable.

I’ve been arguing for a while now that Americans are on the cusp of a dramatic change in how they watch video. They’re moving to video over the internet. Traditional TV is dying, in much the same way that in the mid-2000s we all largely stopped using hardwired telephones to make calls in favor of wireless mobile cellphones.

Hardwired phones are still a big business, of course, and most households still have them. But they’re really a vestigial offshoot of whatever bundled communications package you’ve bought.

It looks like cable is about to go the same way. Although its subscriber numbers are dwindling, subscriber numbers for satellite TV and broadband phone/internet service remain relatively healthy, as the second chart (below) shows. That suggests to me that there is a growing number of households choosing a broadband package with the internet as their top priority, and a dwindling number choosing it based on TV.

Ironically, the fall has come at a time when cable is making more ad money than ever. It’s a supply-and-demand issue: It may be that cable TV’s audience is dwindling, but it’s still one of the few venues that reliably delivers millions of eyeballs all at once.

First, the cable TV chart, based on numbers from ISI Group:

Here’s the market share situation. Note that 2011 was a threshold year, when cable slipped from having more than 50 percent of the market to less:

Please follow Advertising on Twitter and Facebook.

Join the conversation about this story »

See Also:

• Does This Mysterious Mad Men Ad Reveal The Secrets Of Season 5?
• These Stunning New Bottle Designs Are Revolutionizing The Wine Business
• You Saw The Academy Awards, Now See Who Won BI’s Oscars For Ads

In our report on social gaming out today, we forecast that the U.S. social gaming market, including smartphones, will more than double and blow past $5 billion by 2015.

We think this will happen because social games will break into the mainstream as new types of games reach new audiences, and because companies will get even better at monetizing.

Our report also includes an in-depth look at industry trends and exclusive interviews with top industry executives. Click here to read it → 

Please follow BI Intelligence on Twitter.

Join the conversation about this story »

See Also:

• Facebook Is Eating The World
• The Internet’s Next Frontier
• User Engagement: Facebook’s $100 Billion Competitive Advantage

This post originally appeared at Newser. 

PepsiCo’s plan to increase profit margins for its Tropicana orange juice is simple: Just add water. Apparently some consumers are already doing that on their own, in order to get a less-thick or lower-calorie beverage. “They themselves add water before drinking OJ,” a PepsiCo exec tells Bloomberg. “So why not add the water ourselves and charge for it?” Tropicana lost market share to Coca-Cola Co.’s Minute Maid and Simply Orange brands after PepsiCo repackaged its juice three years ago.

Now, instead of continuing to compete in the 100% juice category, PepsiCo will focus on different products with higher profit margins. One such product—Trop50, which contains 42% orange juice and uses a low-calorie stevia-based sweetener—has already been successful. Says the exec, “We have lost perspective here on the primary reason we are in business, which is to make money.” Consumers will always know what they’re getting, thanks to strict FDA juice labeling guidelines.

Please follow War Room on Twitter and Facebook.

Join the conversation about this story »

See Also:

• Pepsi Learns The Hard Way That Indians Don’t Like Diet Soda
• Check Out Pepsi’s Latest Coke-Bashing Ad Campaign
• The REAL Differences Between Coke And Pepsi People

Amazon just kicked off a new TV campaign for the Kindle Fire, which it doubtless hopes will further dent sales of Apple’s iPad. But Kindle has a long way to go before it starts threatening the iPad as a device for serving online ads to consumers.

Data from Rimm-Kaufmann Group, an online marketing agency, show that the iPad maintains its total dominance of the tablet market when it comes to ad traffic. Kindle is slowly making progress, but it only has 3.48 percent of the market to iPad’s 88.1 percent.

iPad had a 93.44 percent share of the market late last year, so share is being traded quickly in this category.

With iPad 3 on the way, even those small gains for Kindle may be in jeopardy.

When it comes to ad performance, the iPad also has a significant edge. If you index the data to the average ad displayed on a desktop computer, ads on iPad get 10 percent more revenue per click, the same level of overall clicks, and a greater average order value.

All the other tablets, including Kindle, perform much worse than ads displayed on PCs.

iPad dominates ad traffic on tablets, but its dominance is slipping.

The Kindle is gaining share of ad traffic the fastest against the iPad.

But the iPad is still the most effective tablet device by far, for advertisers.

See the rest of the story at Business Insider

Please follow Advertising on Twitter and Facebook.

See Also:

• REJOICE: Kindle’s Bikini Girl Is Back — And Now She’s Married
• How Groupon Is Trying, And Failing, To Work With Ad Agencies
• ‘Smell-vertising’ Technology Plans To Make Your Bus Stop Smell Like Greasy Potatoes

This morning, news broke that the Greeks had a reform deal. The Euro shot up on the news.

But if you were on twitter, you could have profited early.

Trader @pawelmorski just posted this annotated chart.

Please follow Money Game on Twitter and Facebook.

Join the conversation about this story »

See Also:

• The Euro Rockets To A 2012 High Amid Reports That A Greek Deal On Austerity Is At Hand
• STIGLITZ: The ECB Needs To Revise Its ‘Peculiar’ Stance On Greek Default
• Guess How Much The Athens Stock Market Is Up Just Since January 10