Recent research from HubSpot has indicated that Facebook photos generate higher engagement than the average post, and new data provided to MarketingCharts by Socialbakers supports this finding. Socialbakers took a sample of approximately 90,000 posts from 24,000 brand pages around the world during the week of November 26-December 2, and analyzed the top 10% most [...]
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.
The iPhone turns five this week. One of the most impressive things about the iPhone’s five year run is that the average selling price of the phone has remained just about the same around $600, notes Horace Dediu of Asymco. Meanwhile, Apple’s rivals pull in less than $400 per device.
Think about that for a second. Apple defined the modern smartphone market with the iPhone. It then faced an onslaught of competition from Google, Microsoft, Palm, and Research In Motion. Despite their various efforts to dethrone the iPhone, Apple has managed to stay on top. This is evident by the fact that since 2008 Apple has never had to slash its prices.
With all the competition, and pressure from carriers, if Apple was losing the smartphone battle, you’d expect it to cut the price of the phone. Instead, it’s been steady.
It’s not just mobile ad spending that’s increasing, online advertising is increasing at a fairly impressive rate. According to internet research firm ComScore, online ad spending increased to just over $30 billion in the U.S. last year, a 20.2% increase.
For 2012, domestic ad spending is expected to surpass $35 billion, a 17.6% increase.
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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.
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From 2010 to 2011, Redbox’s percentage of the physical-disc rental market increased from 25% to 37%, according to market research firm NPD Group. (via Deadline)
Meanwhile, Netflix’s share stayed flat, despite the Qwikster debacle and Reed Hastings’ statement that DVD-by-mail subscribers will decrease steadily from here on out. Brick-and-mortar stores like Blockbuster lost 7%. And video on demand continues to increase in popularity, now accounting for 31% of all rentals.
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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