The latest IAB/PWC figures are out and the sentiment is very positive.
In Q3 of 2008, total online spend on advertising was $451m - up 30% YOY (from $348m Q3 2007) and up 9% on Q2 2008.
All categories contributed to the growth, Display, Classifieds and Search. Display was up 29% YOY, Search 33% YOY and Classifieds up 25% YOY.
When you look at quarter on quarter growth the picture is a little different.
Search was up 9% Q2 to Q3 to $212m for Q3. Display was up 10% to 126m. Classifieds was only up 2% Q2 oto Q3 to 114m.
For display advertising these quarter on quarter figures are a triumph. It outpaced the market in terms of growth, gaining ground on search for the first time in a long time.
For classifieds it signals the start of more bad news to come. Seek today forecast zero profit growth for this fiscal year and the next 6-12 months will hit the main classifieds operators hard as the job, auto and real estate markets flatline.
Display was definitely helped by the Olympics falling into Q3 2008, and was given a kick by some solid and encouraging improvements within the Automotive, Media and Real Estate sectors, alongside strong increases spend wise from the mainstays - Finance, Technology/Telco and Travel.
This report also broke out segments within categories - allowing those who use it to get a better idea of how specific areas such as Music, Home Loans, Gaming, Beverages etc went.
On that note, the music industry definitely need a swift kick up the arse with their online investment - the ENTIRE industry only spent 365k on digital in Q3.
All in all, very encouraging results for the digital advertising world. Q4 will be interesting - publishers seem to be scrambling a little but this is a probably a result of overzealous revenue targeting rather than the bottom dropping out of the market.
2009 - who knows what it will hold ... if I was a Sales Director I'd make sure I was extremely cautious on Q3 09 in terms of YOY growth ... I'd also be somewhat concerned that the big 4 categories for online display spend - finance, automotive, tech and travel are copping a bit of a battering already as a result of a sluggish economic climate. Can they maintain the same spend levels in terms of dollar amount they invested in 08 in 09, let alone increase them?
Thankyou to Patty Keegan for supplying me with this report today.
Showing posts with label PWC. Show all posts
Showing posts with label PWC. Show all posts
Friday, November 7, 2008
Thursday, August 7, 2008
Freudenstein: The Way I See It
Richard Freudenstein has a short piece in the PWC Entertainment and Media Outlook and makes a good point that I hope signals that the wider industry are starting to understand that not all eyeballs are created equal.
"And just as not every ad break or page in a newspaper is created equal in the eyes of advertisers, the digital media industry has to do more to communicate the value of premium inventory on our sites. The space on the internet may be limitless, but premium inventory - and its ability to deliver engaged audiences - is not."
Edit: Now I guess we have to work out what is meant by the term 'premium'
"And just as not every ad break or page in a newspaper is created equal in the eyes of advertisers, the digital media industry has to do more to communicate the value of premium inventory on our sites. The space on the internet may be limitless, but premium inventory - and its ability to deliver engaged audiences - is not."
Edit: Now I guess we have to work out what is meant by the term 'premium'
PWC Aust Entertainment and Media Outlook Report 08-12
I'm going through the PWC Australian Entertainment and Media Report Outlook 2008-2012 to summarise for work.
I noticed an interesting point in their 'outlook in brief'
Performance or activity based remuneration of website operators by advertisers has taken hold as marketers seek genuine engagement with audiences on the Internet. This has significant implications for advertising supported web businesses which have been traditionally compensated on page impressions or clicks.
Reading between the lines I think they are mistaking performance based advertising as genuine engagement.
I noticed an interesting point in their 'outlook in brief'
Performance or activity based remuneration of website operators by advertisers has taken hold as marketers seek genuine engagement with audiences on the Internet. This has significant implications for advertising supported web businesses which have been traditionally compensated on page impressions or clicks.
Reading between the lines I think they are mistaking performance based advertising as genuine engagement.
Monday, February 18, 2008
IAB/PWC: Online Ad Growth currently at 19.5%
The IAB and PWC have released their Online Advertising Expenditure Report for the 12 months ending 31/12/07 and the results are interesting. If you compare Q4 2007 with Q4 2006, we're seeing growth of 19.5%
Usually these reports are greeted by all involved with requisite high fivery and back slapping ... but I would hazard a guess that when the last lot of data arrived the champagne would have stayed on ice.
Overall the industry is still experiencing solid growth - it's up 34.5% year on year. Display accounts for 28%, Classifieds 26% and Search 46%.
However these stats need to be analysed further. A common mistake many make is assuming ALL areas of online media are experiencing this 34.5% growth ... they're not.
Search is driving the growth, up 56% YOY (ie 06 to 07). Display was only up 21% from 06 to 07 ... this would be a concern to many, especially when you consider the industry had 56% growth from 05-06.
It is easy to assume 21% growth was not anticipated by most players, especially when numerous publishers I came across were forecasting 50% growth in their display business. I would hate to be a sales director at the moment looking at actual versus forecast.
Display, when you compare only Q4 06 to 04 07 is up 14% - compared to 29% for search. This shows minimal growth in what is generally the biggest quarter of the year. 14% growth would be celebrated by most media, but for online it's well below what is expected.
Adding more woe to the larger publishers is the fact more display dollars are going to what they refer to as 'the tail' ... ie anyone who isn't in the big 5. Some estimate this is 50% or more of total display spend ... which differs from a few years ago where the big 5 accounted for 75%+ of all display revenues.
Don't get me wrong, digital is still growing at fantastic rates ... but I think these results are a welcome reality check for many involved. For online to grow it is simply not enough to sit back and enjoy a category wide surge in spend ... the real winners moving forward, who see their own revenues increase higher than the overall industry, will be the ones who innovate and push forward what the definition of 'digital' media is ... from integration to video to content, search, mobile, digital outdoor, performance, analytics and beyond. This is something the industry as a whole needs to do - from publishers to media agencies to creative agencies and really starts at how digital is positioned within these environments. Those who have integrated digital, who have the right staff and the right learnings and the right experience are in the box seat.
For search the news is probably rosier than their display friends - now many are learning of the branding benefits and Google are seeing some great results in terms of expanding their product offering and the immediate advertiser benefits. One would predict that search can maintain current market growth domestically for the next 2 years. The issue for Yahoo! and MSN is that Google dominates this area.
I'm interested to get anyone elses opinion on the new IAB data ..
Usually these reports are greeted by all involved with requisite high fivery and back slapping ... but I would hazard a guess that when the last lot of data arrived the champagne would have stayed on ice.
Overall the industry is still experiencing solid growth - it's up 34.5% year on year. Display accounts for 28%, Classifieds 26% and Search 46%.
However these stats need to be analysed further. A common mistake many make is assuming ALL areas of online media are experiencing this 34.5% growth ... they're not.
Search is driving the growth, up 56% YOY (ie 06 to 07). Display was only up 21% from 06 to 07 ... this would be a concern to many, especially when you consider the industry had 56% growth from 05-06.
It is easy to assume 21% growth was not anticipated by most players, especially when numerous publishers I came across were forecasting 50% growth in their display business. I would hate to be a sales director at the moment looking at actual versus forecast.
Display, when you compare only Q4 06 to 04 07 is up 14% - compared to 29% for search. This shows minimal growth in what is generally the biggest quarter of the year. 14% growth would be celebrated by most media, but for online it's well below what is expected.
Adding more woe to the larger publishers is the fact more display dollars are going to what they refer to as 'the tail' ... ie anyone who isn't in the big 5. Some estimate this is 50% or more of total display spend ... which differs from a few years ago where the big 5 accounted for 75%+ of all display revenues.
Don't get me wrong, digital is still growing at fantastic rates ... but I think these results are a welcome reality check for many involved. For online to grow it is simply not enough to sit back and enjoy a category wide surge in spend ... the real winners moving forward, who see their own revenues increase higher than the overall industry, will be the ones who innovate and push forward what the definition of 'digital' media is ... from integration to video to content, search, mobile, digital outdoor, performance, analytics and beyond. This is something the industry as a whole needs to do - from publishers to media agencies to creative agencies and really starts at how digital is positioned within these environments. Those who have integrated digital, who have the right staff and the right learnings and the right experience are in the box seat.
For search the news is probably rosier than their display friends - now many are learning of the branding benefits and Google are seeing some great results in terms of expanding their product offering and the immediate advertiser benefits. One would predict that search can maintain current market growth domestically for the next 2 years. The issue for Yahoo! and MSN is that Google dominates this area.
I'm interested to get anyone elses opinion on the new IAB data ..
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