drag2share: Samsung Is On Track To Spend ~$13 Billion In Marketing This Year (GOOG)


Wondering how Samsung managed to quash Motorola, HTC, and just about every other major Android rival? Start with this chart from analyst Benedict Evans.

Evans notes that Samsung’s run-rate for marketing is $12.7 billion based on marketing tin Q2. That’s more than Google paid to buy all of Motorola. It’s 3X HTC’s entire market cap.

It’s just an insane budget that no other company can keep pace with. Samsung’s final bill could be higher. Evans says that based on historical patterns, it will spend $4.5 billion in the fourth quarter. (He also says that it tends to spend more in Q3, though less in Q1.)

chart of the day samsung marketing

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Wednesday, September 25th, 2013 news No Comments

Bot Traffic in Q2: Suspicious Activity Continues to Rise


SolveMedia-Online-Bot-Traffic-Q32012-Q22013-Sept2013Bot traffic continues to be a global problem, says Solve Media in its latest Bot Traffic Market Advisory update. In Q2, activity deemed “suspicious” grew to 49% of all traffic for the web advertising ecosystem, up from 43% in Q1, 40% in Q4 2012 and 26% in Q3. Confirmed bot traffic was in the range of 24-29%, fairly consistent with prior quarters, but still up significantly from 10% in Q3 2012. Suspicious mobile traffic, while not quite on the same level as the web, is also on the rise.

During Q2, suspicious activity grew from 29% to 35% for mobile advertising, with confirmed bot traffic in the 11-14% range.

The US’ level of suspicious web activity was slightly below the global average, at 42%, with suspicious mobile activity also below-average at 22%.

The top 3 countries for suspicious web activity were: China (92%); Venezuela (80%); and the Ukraine (77%). For mobile traffic, the countries with the highest share of suspicious activity were: Singapore (86%); Macau (82%); and Qatar (81%).

Solve Media also warns of a “new threat targeting the video ad marketplace.” Recently, Vindico suggested that 30-40% of video ad impressions could be fraudulent.

Overall, Solve Media estimates that current levels of bot traffic put the digital advertising industry on pace to waste up to $9.5 billion this year advertising to bots.

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Thursday, September 12th, 2013 news No Comments

Retailers Struggling to Keep Pace With Consumers’ New Uses of Technology


RSR-Retail-Marketing-Challenges-Aug2013Asked to identify their top 3 marketing business challenges, almost half of retailers indicated that they can’t keep up with the new ways consumers are using technologies, according to [download page] new survey results from RSR Research. While that wasn’t the top response overall (61% complained that customer retention has become more difficult and building customer loyalty is challenging), it was the top concern for so-called “winners,” who boast comparable store/channel sales growth of more than 5%.

61% of winners cited consumer use of technology as a top-3 marketing business challenge, with customer retention and loyalty concerns trailing (50%).

By contrast, “laggards” (with comparable store/channel sales growth of less than 5%) are very concerned with customer retention (89% citing as top-3), with few (31%) worried about the new ways consumers are putting their technologies to use. In fact, laggards appear to be more anxious about differentiating their brand from the competition (44%), a concern that that isn’t shared by those in the winners category.

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Friday, August 30th, 2013 news No Comments

Major US Digital Players Shift Revenues to Mobile – eMarketer


Nearly one-fifth of Google’s revenues will come from mobile search

Major players in the US digital ad market are shifting more of their revenues to mobile, as consumers in the US spend more time than ever with portable connected devices.

Search is the largest single format when it comes to mobile ad spending, and search giant Google is already garnering nearly one-fifth of its total US ad revenues from mobile search, eMarketer estimates. This year, 19.1% of Google’s ad revenues will come from mobile search, up from 12.3% last year and rising to nearly 31% by 2015.

While search drives much of Google’s mobile monetization, on the display side YouTube is a major reason more mobile dollars are going to Google. Google has moved display dollars to mobile at a similar pace as for search, though display makes up less of Google’s overall ad revenues. This year, eMarketer projects, 3.8% of Google’s net US ad revenues will come from mobile display, vs. 13.8% coming from desktop display ads. By 2015, the mix will be 9.4% mobile display and 16.6% desktop display, more than doubling mobile display’s share of total ad revenues while still growing display dollars on the desktop.

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Thursday, August 29th, 2013 news No Comments

The RIAA Just Got Insanely Fast at Censoring Links From Google


The RIAA Just Got Insanely Fast at Censoring Links From Google

It should come as no surprise that the RIAA, of all organizations, plays particularly fast and loose with its DMCA takedown requests. But thanks to a ridiculous blitz, the RIAA just had its 25 millionth link removed from Google search results. And it’s not slowing down.

According to TorrentFreak the RIAA hit its 20 million link milestone just last May, a number that took a whole year to reach. Now, the RIAA’s racked up an additional five million in a mere six weeks. To pull that off, the RIAA has to be doling out those DMCA requests more than twice as fast as it was just months ago.

Even with this new, blistering pace, the RIAA is only the second most takedown-happy organization Google has to deal with. Number one is the Indian-based anti-piracy organization Degban which is ahead with an all-time score of around 28 mil. Still, it looks like the RIAA is running faster all the time, and at this rate they’ll be number one in no time. We’ll have to just wait and see if this magically solves piracy. [TorrentFreak]

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Sunday, July 7th, 2013 news No Comments

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

Google Served 2B Video Ads in Feb 2013 Facebook Serves 120B Display Ads Per Month

Google Served 2.2B video ads in February 2013.
Facebook serves an estimated 114B display ad impressions per month
The research, by comScore, estimates that Facebook now has 31.2% of U.S. advertising display impressions, up from 25.9% in the fourth quarter of 2010 and 15.6% in Q1 2010. At the current pace, Facebook will easily surpass 1 trillion impressions for the year.The total number of U.S. impressions was 1.1 trillion for the first quarter. Facebook’s closest competitor is Yahoo’s network of sites, which claimed 10.1% of the market.

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Friday, March 15th, 2013 news No Comments

CHART OF THE DAY: The Curious Case Of Apple’s Flattening iTunes Revenue (AAPL)


Apple, if it were just a media company, would be pretty fearsome. Its iTunes business is on pace to do $8 billion in annual revenues.

But, fund manager Eric Jackson at Forbes noted something interesting about iTunes this quarter. It was flat on a sequential basis, despite the fact that Apple added 75 million new iOS devices. iTunes revenue was $2.1 billion.

Over the last four quarters iTunes revenue is basically flat going from $1.9 billion to $2.1 billion. Meanwhile, iOS devices have gone from 365 million to 529 million, a significant jump. Pulling further back, as we did in this chart, over the last 11 quarters, iOS devices are up 5.3X, while iTunes is only up 2X.

Why is iTunes sputtering relative to iOS? We assume part of it is Apple’s international iOS growth where iTunes items like songs and movies aren’t available. We also assume services like Netflix and Spotify are cutting into iTunes sales.

What this means for Apple is unclear. But a big part of Apple’s strength is its ecosystem. Part of that ecosystem is music, movies, and apps bought through iTunes. If people are buying fewer movies and less music, they will be less locked in to Apple’s platform.

itunes revenue

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Tuesday, January 29th, 2013 news No Comments

NPD study finds average display sizes continuing to rise in all areas but laptops and tablets


NPD study finds average display sizes continuing to rise in all areas but laptops and tablets

Not exactly a huge surprise here, but a new study out from NPD DisplaySearch today has confirmed that the trend towards larger screens in continuing at a steady pace in all but a few key areas. The big exception is “mobile PCs,” which NPD defines as laptops and tablets for its purposes. That area dropped from a 13.6-inch average in 2010 to 12.1-inch in 2012 (with an ever so slight increase to 12.2-inches projected for 2013), a drop that represents a ten percent decrease overall and is largely attributed to the growth of tablets . All other areas have seen small to significant growth in recent years, with LCD TVs growing 9 percent, mobile phones increasing 38 percent, and portable media players jumping 29 percent. The biggest growth, by far, comes in OLED TVs, which have gone from a mere 15-inch average in 2010 to an average of 55-inches today — a growth of 267 percent.

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Tuesday, October 16th, 2012 news No Comments

JCPenney Broke A ‘Sacred Covenant,’ And Now It’s Paying For It


jcp, jcpenny, jc penny, retail, stores, shopping, shop,

JCPenney and its CEO Ron Johnson are going through a period of total transformation, but the retailer has had plenty of critics. 

They understand that the metamorphosis is going to take time, but some disagree with the way Johnson is going about it.

Bruce Dybvad at brand consultancy Interbrand writes that JCPenney is the perfect example of what happens when a big-time retailer “fails to keep pace, listen, and respond.”‘

He commends JCPenney’s attempt to turn things around, but he’s worried about the amount of input consumers are getting regarding all the changes. Customers have been confused and unwilling to go along with the new image.

Dybvad writes:

Retailers pay a steep price when they break a sacred covenant; that is, the need for the experience to deliver on the expectations set by its brand communications. Leaders of tomorrow will be those who effectively manage transformational change with the participation of their customers and keep their promises.”

It’s a real problem that JCPenney has to deal with. Some customers actually feel betrayed. So far, JCPenney hasn’t been able to match the expectations that it set for itself.

One customer explained how she felt about her beloved store in an email that we published back in August:

“Think of the way most women have a best friend. For many of us, our favorite department stores and ! brands a re like best friends. We rely on them to offer what we need and provide support and interest in our lives. Large-scale drastic changes to stores and brands are akin to having a best friend become a completely different person and leave the friendship. This effect is compounded when a favorite retailer suddenly sends signals that you as a customer are no longer valued or wanted. Not only does it create discomfort, but it shatters trust and causes emotional pain.”

NOW SEE: Here’s What JCPenney Retail Employees REALLY Think Of CEO Ron Johnson > 

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Friday, October 5th, 2012 news No Comments

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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