Center >> E-Newsletters
Tech, Financial Services Fuel Online Ad Growth
Rebound in financial markets, PC hardware and software
bodes well for B2B media.
from AICPA Custom Media Solutions
in e-mail newsletters and on Web sites were most frequently cited
as the fastest growing revenue areas in 2005 for B2B publishing
execs. The just-released Folio magazine survey of nearly 1,000 trade
magazine CEOs found that more than one-third (35%) of respondents
in the Folio said the e-newsletter/Web advertising category was
their fastest growing category in 2005 and expected it to remain
so in 2006.
advertising accounts for less than 10 percent of overall B2B media
company revenue, on average, it is the fastest growing and most
talked about new revenue stream. The resurgence of ad spending by
technology vendors, and the recent rally in U.S. financial markets
has bolstered two traditionally strong B2B ad categories.
products" advertising category has been stagnant in recent
years as PCs sales flattened. As a share of total online spending,
computing products drifted downward, from 20 percent of all online
advertising in 2003 to just 15 percent in 2005. But this year, with
several new products coming to market, that is all about to change,
according to several market research organizations including eMarketer,
Inc. and Jupiter Research.
On the tech
side this year, after a two-year hiatus on major announcements,
several new products are coming to market and online advertising
will once again be a major component of technology marketers' campaigns.
In addition, as hardware and software companies partner with Internet
publishers and content providers to enter new markets and reach
consumers in new ways, convergence of the two industries is well
underway, heralding more new products and opportunities.
Products Share of Total Online Ad Spending
Inc. 2006; PricewaterhouseCoopers; Interactive Advetising Bureau
Publishers anticipate that traditional brand marketers
will substantially increase their Web advertising this year, according
to a new study by AOL's Advertising.com. "While Web-based direct-response
advertisers are expected to represent the majority of online revenue,
publishers are predicting increased spending from traditional, brand-focused
advertisers," stated the report, 2006 Interactive Publisher
Survey. The study was based on a January survey of online publishers
in Advertising.com's network.
The respondents predicted that about 32 percent
of revenue this year would come from offline companies — up
from 26.5 percent last year and 22 percent in 2004. Spending is
expected to increase across a variety of categories, including retail,
consumer packaged goods, entertainment and automotive.
Financial services providers continue ad
services companies increased their commitment to online ad spending
last month — purchasing 30 percent of all display impressions,
according to Nielsen/NetRatings AdRelevance. A year ago, financial
services marketers were responsible for just 20 percent of display
ads online; last month, they purchased 28 percent of display ads.
Telecom marketers also upped their online ad spending year-over-year
— accounting for 17 percent of impressions last month, up
from 12 percent last year. The third-largest category of advertisers
— retail goods and services marketers — purchased 15
percent of impressions in April, up from 14 percent in April of
Meanwhile, a Questex Media Group survey of 767 B2B
marketing executives confirmed that lead generation and finding
new customers are their top priorities. While trade shows and conferences
were most frequently cited as their top priorities, new media opportunities
are quickly gaining ground in many markets. When asked in which
marketing channels they planned to increase their investment in
2006, 47 percent of the Questex survey respondents cited online
advertising and 44 percent said they plan to increase spending on
e-mail marketing. No other medium was even close.
Report shows marketers stick with proven
Mobile, RSS and adver-gaming may get lots of media
attention, but many marketers are looking the other way. A new Forrester
Research report shows that a wide spectrum of interactive marketers
is continuing to bank on proven methods such as e-mail and search,
and experiment with rich media and new forms of targeting. Yet most
are hesitant to try RSS, blogs, social networking, mobile and in-game
found the channels that seemed to get the most curiosity —
are not necessarily the ones that marketers are willing to experiment
with," concluded Forrester senior analyst Shar VanBoskirk,
author of the recent "Interactive Marketing Channels to Watch
in 2006" report. The study looks at media plans and usage of
259 marketers from industries including Financial Services, Retail,
Media and Communications, Consumer Products, Travel and Leisure,
as well as Business Equipment, Technology and Services.
marketing and behavioral targeting came out on top as the channels
most marketers either use currently or anticipate using. Ninety-three
percent of surveyed marketers use or plan to use e-mail in their
marketing efforts, 80 percent use or plan to use search, and 73
percent employ or plan on employing behavioral targeting. Contextual
targeting comes in at 69 percent, while 67 percent said they use
or expect to use rich media e-mail or rich media display ads
Though they may be the subject of many a news story,
emerging media channels fared worse in the minds of marketers. Just
over 50 percent use or plan to use blogs or social networks, 47
percent use or plan to use RSS, 43 percent go or have gone mobile,
and 28 percent are doing or plan on doing advergaming or in-game
ads. Forty-two percent of participants described their companies
as aggressive when it comes to investing in marketing technology,
while 58 did not.
Blogs and social networking, suggested VanBoskirk,
are often portrayed as potentially "disruptive" to companies.
So, compared to other newer channels, marketers are more apt to
use these media, in part because they feel they have to in order
to counteract negative publicity from blogs or other consumer-generated
media and social networking sites.
One marketer was quoted as follows: "The intention
to test new media is good, but it means a budget tradeoff. Do you
spend money testing something new or go with what you know works?
It's a big mistake to move into multiple interactive channels without
having a clear Internet strategy first."
How can marketers best analyze new media channels?
The report recommends they "create a channel innovation team."
It suggests they start by learning more about different forms of
online ad targeting which "improves the cost-efficiency of
existing online advertising efforts by helping to identify more,
lower-priced inventory." And, although the report suggests
marketers monitor online buzz and slowly test blogs, RSS and other
emerging media, it directs marketers to "Let RSS, blogs and
podcasting simmer on the back burner."
As always, we’ll
keep you posted. As mentioned in today’s lead story, we’re
committed to changing the wheels on the bus as it rolls down the
highway — as long as it’s rolling in the right direction.