Ad Sales Blog

UK follows Denmark as second country where Internet ad revenue overtakes TV

In the US where television advertising still commands the largest share of ad dollars what has happened in the UK is unthinkable; Internet advertising revenue has surpassed TV ad revenue for the first time. From a recent report in the The Guardian newspaper: 

 The UK has become the first major economy where advertisers spend more on internet advertising than on television advertising, with a record £1.75bn online spend in the first six months of the year.

UK advertisers spent £1.75bn on internet advertising in the six months to the end of June, a 4.6% year-on-year increase, according to a report by the Internet Advertising Bureau and PricewaterhouseCoopers. To put this in perspective, in 1998, when the IAB first measured internet advertising, just £19.4m was spent online.

The internet now accounts for 23.5% of all advertising money spent in the UK, while TV ad spend accounts for 21.9% of marketing budgets.

The IAB's figures show that of the total of £1.75bn spent on internet advertising, £1.05bn, or 60%, was spent on search advertising on websites including Google, up 6.8% year on year.

The UK is not the first country where internet ad spend has overtaken TV spend, Denmark reached the milestone about six months ago. But it is the first major economy to do so.

How soon do you think this will happen in the US? 

Read the entire article in the Guardian 

Media planning contorted by social media

if you want ot sell media these days you need to understand the effect social media is having on the minds of the media buyer. This amazing slide show by Hike Hess, VP of Research at Carat, lays out just how the move to social media is blowing many media buying conventions.Packed with lots of great stats Hess shows us the way:

Ama Social Media Pres100109

View more presentations from garystein.

White papers most influential collateral for tech buyers

According to the “Eccolo Media 2009 B2B Technology Collateral Survey Report,” white papers are the most influential form of collateral for tech buyers. Eccolo surveyed the use of B2B technology collateral during tech purchases. When compared to other collateral, white papers came out on top. 

Tech buyers found "most influential": white papers 38%, brochures 28%, case studies 22%, videos 9%, podcast 3%:   

The study also offered useful information on how to make white papers more influential: 

"When asked to rank which factors would most likely increase
the influence of a white paper, respondents most
frequently responded that providing detailed technical
information would increase influence, closely followed by real-life use cases and new industry developments. Likewise, we asked respondents to rank those factors that would decrease the influence of white papers. Respondents most frequently indicated that poorly presented information would decrease a white paper’s influence, closely followed by too much focus on a product or vendor, and no inclusion of real-life case studies."

Download the study for free (reg required).

 

Managing the interactive shift...from SNAP

"Managing the interactive shift" was the extremely engaged presentation I co-presented at the SNAP conference last week along with Glenn Cook, American School Board Journal’s editor-in-chief and publishing director. The session was Glenn's idea. I showed up with my typical "too many" slide PowerPoint, but following Glenn's advice I put them aside, and together we talked through a wide variety of issues to an audience that could not seem to stop asking questions. It was a great session! The official conference report showed just how diverse the dialog was.   

Folio reported on the "spirited debate" I had with my co-presenter over the issue of paid content. Glenn was for it. With my current Folio article, "Four Ways to Avoid Paid Content Suicide" fresh in mind, I advised against. Instead, suggesting an "if you can't beat 'em, join 'em" alternative; encouraging publishers to become content aggregators themselves, and go on to win the "search" wars for profit.  

I was most heartened when well known industry pundit and blogger Rex Hammock Tweeted from the audience, "Josh Gordon talking about digital magazines in the most coherent, logical and convincing way I've heard."

With all the challenges I faced working on the Digital Magazine Ad Engagement project it was nice to hear. 

"Pure plays" beat you by loving search more

Many print publishers I talk to are surprised by upstart "web only" media companies that drain online ad dollars out of their markets. Established media should hold all the cards; an established brand, a history in the market, and access to online list development via the magazine subscription process.

How do these web only "pure plays" stand a chance? Simple, they love search more than we do. A study from Borrell Associates entitled, "WHAT LOCAL MEDIA WEB SITES EARN: May 2008 SURVEY", uncovers the strategy in the regional magazine market that should raise alarm for any magazine, anywhere.

First, some news from the survey that challenges the conventional wisdom that your print brand gives a huge advantage online: 

 "The most financially successful local Web operations are venturing into page designs and product lines that have little to do with the medium that gave birth to them. Like their “new media” predecessors in radio in the 1920s and television in the 1950s, they are creating unique identities and breaking away from their print and broadcast roots."

 On how pure plays get their traffic:

 "Part of the growth is being driven by traditional local media companies selling advertising on their own sites. Most of it, however, comes from pure-play companies delivering lower cost advertising that intercepts consumers not as they are reading news online, but as they are using the Web to research products and prices."

 "Intercept" web visitors as they "research products and prices"? That's "search." Without a print brand to drive visits to a site "search" is how they do it. Simply put, "pure plays" are playing the Search Engine Optimization game better, and are able to establish competitive brands as result. 

Download a free summary of the Borrell report

  

 

 

Social networking is hot, but is it a business?

In earlier posts I have cautioned against adding online products to your magazine's brand portfolio because other publications seem to succeed at using them. There are strategic reasons for all online products but they may not fit your requirements. For example, blogs are fantastic web site traffic builders that can lift site traffic and thus rates. But trying to monetize blogs directly by selling sponsorships on them is typically much harder. 

This weeks Economist turns that same analysis to social networking and comes up with a similar cautionary tale:

"The big internet and media companies have bid up the implicit valuations of MySpace, Facebook and others. But that does not mean there is a working revenue model. Sergey Brin, Google's co-founder, recently admitted that Google's “social networking inventory as a whole” was proving problematic and that the “monetization work we were doing there didn't pan out as well as we had hoped.” Google has a contractual agreement with News Corp to place advertisements on its network, MySpace, and also owns its own network, Orkut. Clearly, Google is not making money from either.

Facebook, now allied to Microsoft, has fared worse. Its grand attempt to redefine the advertising industry by pioneering a new approach to social marketing, called Beacon, failed completely. Facebook's idea was to inform a user's friends whenever he bought something at certain online retailers, by running a small announcement inside the friends' “news feeds”. In theory, this was to become a new recommendation economy, an algorithmic form of word of mouth. In practice, users rebelled and privacy watchdogs cried foul. Mark Zuckerberg, Facebook's founder, admitted in December that “we simply did a bad job with this release” and apologized.

So it is entirely conceivable that social networking, like web-mail, will never make oodles of money. That, however, in no way detracts from its enormous utility. Social networking has made explicit the connections between people, so that a thriving ecosystem of small programs can exploit this “social graph” to enable friends to interact via games, greetings, video clips and so on."

Read the whole article on the Economist Website:

http://www.economist.com/business/displaystory.cfm?story_id=10880936

The 10% newspaper problem on your doorstep

Scot Karp on Publishing 2.0  Blogsite estimates that the print/web transition is now at a 10% tipping point. Using the New York Times as  an example he calculates,

"Let’s assume that the NYTimes.com has roughly the same portion of ad revenue coming from online. What you find, with some modest rounding, is that print circulation is about 10% of total audience reach, while online advertising revenue is 10% of total ad revenue — the economics are nearly the perfect inverse of what they should be."

Read the whole analysis

Need a new ad business model? Think like Rupert

We will soon know if Rupert Murdock will succeed in buying the Wall Street Journal.

Other media organizations have passed on the deal, among them General Electric, who owns NBC Universal, and Financial Times publisher Pearson (whose Berkley division published my third book Selling 2.0). 

In a statement today NBC Universal Chief Executive Jeff Zucker, with reference to Murdock's $5 billion offer, said his organization passed on the deal because it would not be "fiscally disciplined" to continue. Zucker added, "I am not going to presume to know what's in Rupert's mind in terms of why he's bid what he's bid."

This week's Time magazine cover story gives us that very look into Murdock's mind and it is all about creatively revising the Wall Street Journal's publishing business model:

"What if, at the Journal, we spent $100 million a year hiring all the best business journalists in the world? Say 200 of them. And spent some money on establishing the brand but went global — a great, great newspaper with big, iconic names, outstanding writers, reporters, experts. And then you make it free, online only. No printing plants, no paper, no trucks. How long would it take for the advertising to come? It would be successful, it would work and you'd make ... a little bit of money. Then again, the Journal and the Times make very little money now."

Every publisher can take a lesson from this. Murdock is not looking to buy the Wall Street Journal for what it is, but for what it could be if it's brand were leveraged into new media.

Read the entire Time Inc. article

Can web video become your search counter attack?

I have described in recent posts how "search" can be the great sucking sound of ad dollars moving away from your on line offerings. But what if there were a trend you could take advantage of to reverse this?

A new study suggests that the growth of web video might make this happen.  Here's how this could work. Search's ability to capture ad dollars rests with it's  ability to offer web surfers the ultimate ability to find what they didn't know they were looking for.

But what if the content offerings on websites simply became much more engaging?  Perhaps the power, and thus ad dollars, would start to shift from the people who provide access (search  providers) to the content providers (that's us).
See an article describing the trend.

Picking Your Next Web-Based Option in the Online Candy Shop

My Folio column in the June 2007 issue: Picking Your Next Web-Based Option in the Online Candy Shop Wednesday, May 30, 2007

If publishers look like kids in a candy store while perusing all the bright new online products to develop, why do so many get stomach aches? It’s because as the online options grow, so do the number of horror stories of promising Web products that sucked up massive resources and generated zilch revenue.

Too often the strategy of picking the next Web-based project is based on what a neighbor is doing. “Another magazine in our company/market/category is having great success with ‘option x.’ Hey, if they can handle it, we can do better!” But development strategy should not be based on what’s going on in other guy’s backyard; it should come from what is going on in yours. Like many things publishing, it starts with a hard look at your market.

How Does Your Market Go to Market?
The first step is to ask, “How do my advertisers sell when they approach their customers?” Your next online product needs to support this process, and this question can eliminate about half of the online options you might consider. For example, “Ask the expert” columns, posted on your Web site, are great for showcasing an advertiser’s expertise and can make them look like industry thought leaders. But be honest, if your advertisers actually do little consultative selling when they go to their customers, this approach could flop.

Finish the article on Folio magazine's site:

http://www.foliomag.com/viewMedia.asp?prmMID=7741