Advertising v3.0 by Chris Schaumann

MIX | Sessions

Worldwide – Approximately 6,000 Advertisers account for >80% of all ad spending (~5,000 in US account for >90% of US ad spending)

• Advertising Needs Massive Automation
• Market is manual (phone calls and email drive everything)
• Market is opaque (no pricing transparency)
• Market is inefficient (loads of remnant inventory drives prices lower – see #2)

• Add transparency to the mix
• Increase liquidity by letting all advertisers bid / buy across all networks
• Drive market efficiency
  
• In a world where exchanges exist, every impression can be evaluated and a bid price can be set – in real time
• When this is possible, the price can be adjusted up and down based on confidence of driving a campaign goal
• Campaign goals in search today are generally based on performance (Driving a sale)
• In the future, the system can optimize against other goals – such as driving awareness of a brand, or changing perceptions of the audience, or changing purchase intent

• Nano Technology drives more devices, more flexible scenarios
• Hyper-targeting with personalized advertising
• Personalized Product Offerings
• Projectors, OLED and Disposable Video
  • Low Resolution Video Projectors are becoming incredibly cheap
  • OLED is printable and flexible
  • Siemens Printable Video Displays – with printable batteries
• Tracking and Measuring Advertising Offline like Online
  • RFID
  • GPS Phones
  • 2D Bar Codes (QR & other)
  • Bluetooth & other methods
  • Neural Scanning Technologies

 Download the electronic version of Presentation free of charge.

In the Age of TiVo and Web Video, What Is Prime Time? - New York Times

Who stole six million viewers? That’s the number who were watching prime time television last May, a month affectionately known as “sweeps,” but have disappeared this year, according to the overnight Nielsen ratings.
In the past television season, there has been a sharp increase in time-shifting. Some of the six million are still watching, but on their own terms, thanks to TiVos and other digital video recorders, streaming video on the Internet, and cable video on demand offerings. So while overall usage of television is steady, the linear broadcasts favored by advertisers are in decline.

One in four American households now uses a digital video recorder to time-shift shows and skip commercials. While they enable viewers to watch more hours of television, they hurt the rate of commercial recognition, as about half of all commercials are skipped in time-shifting modes.

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Advertising Age - Agency Report 2008 Index

Revenue for U.S. agencies -- advertising, marketing services and media -- jumped 8.6% in 2007 despite a tepid ad market. And for that, you can thank digital. While it comes as no surprise that revenue at digital specialty agencies rocketed last year (up 26.8% in the U.S.), it's clear that digital services have become a way of life (or a way to avoid death) for agencies of all disciplines. In fact, U.S. ad agencies reported an average 10.2% of revenue from digital in 2007.

The Big 4 ad firms -- Omnicom Group, WPP Group, Interpublic Group of Cos. and Publicis Groupe -- last year generated 12.3% of worldwide revenue from digital services.

 Download the electronic version of Agency Report free of charge.

 Download the electronic version of Agency Family Tree 08 free of charge.

Carat Forecast

Carat has issued revised forecasts for global advertising expenditure in 2008. For the first time, Carat has also published forecasts looking to 2009.
2009 is predicted to see advertising growth of 4.9% worldwide, with the fastest-growing regions set to be Asia Pacific and Latin America, with strong increases predicted for India, Indonesia and Argentina, at 21.2%, 22.3% and 15.0% respectively.
Segment-wise, the strongest growth remains in digital, at 23.3% for 2008, although it is expected to slow somewhat to 18% in 2009.“Digital’s success story continues. We predict it will approach a 10% share of all global ad spend in 2009."

Unsurprisingly, the internet is delivering the fastest increase of all the sectors, with digital growth in double-digit in all regions. Of particular note are China with 56.0% growth anticipated in 2008 and Russia with 46.3%. The fast growth rates of recent years are expected to moderate slightly but still show double-digit growth: digital in 2008 and 2009 is forecast to grow at 18.0% and 15.3% respectively in North America; 28.7% and 16.2% in Asia; and 27.5% and 22.9% in Europe.

 Download the electronic version of Research Paper free of charge.

Higher !nnovation Blog

And Intel Engineer a couple of years ago projected 16 and 32 core processors on a single die within the next five years. He went on to say that cores could be dedicated to graphics and audio subsystems to create deeply engaging simulations that are cinematic in quality and life-like in experience.

It's two years after that Intel conversation, the shift from multi-core computing to many core computing is on the horizon.  Recently, Microsoft published The Manycore Shift White paper on its stake in the many-core transition and what it means to both business and personal computing:

• User experience is undergoing a radical transformation.  The computing experience for end-users is going to take a quantum leap from what's possible and cool today.   

 Download the electronic version of Manycore Shift White Paper free of charge.

Data from comScore Voices and iProspect

comScore revealed exclusive universal search data that showed many more searchers than expected are seeing blended search results. The data gathered during one week in January, showed that there were 220 million universal search results, of the total 1.2 billion search queries in the U.S. That means 17 percent of all searches on Google showed at least one result with video, news, images, maps, weather, or stocks. comScore's findings support the assertion that the search result page is transforming from a directional guide to a destination. 
 

iProspect came out with more research emphasizing the prevalence of blended search results, and the way they change the behavior of searchers. The data showed that searchers are much more likely to click on image, news, or video search results when they are presented in a blended format.

 Download the electronic version of iProspect Study free of charge. 

Kiss and Punch - Forbes.com

In 2007 WPP reported a pretax profit of $1.4 billion on revenue of $12.3 billion, up 8% in constant currencies. (That revenue puts it behind only Omnicom, at $12.7 billion, in its industry.) WPP's operating (roughly speaking, Ebitda) margin has improved steadily to 15%, and in the last quarter of the year WPP stunned rivals Omnicom, Publicis, IPG and Havas by announcing record-smashing account wins with AT&Tand Dell. Total billings last year: $63 billion. Over the past decade the company's earnings per share have been climbing at an 11% annualrate.

The globe spends $700 billion a year on advertising.

WPP is well ahead of its competitors in cracking Asia; the firm identified 1,200 potential acquisitions in China. Miles Young, chairman of Ogilvy & Mather Asia Pacific, says WPP cherry-picked 18 acquisitions in greater China (includes Taiwan) these last four years. WPP is the biggest ad firm in greater China (36% of total billings), India (56%) and Thailand (39%).

Last year the Internet accounted for 7.5% of the total $151 billion spent on advertising in the U.S. But Americans are spending some 25% of their news and entertainment time on the Web. The ad spending will catch up. Digitally focused firms accounted for 12% of WPP's total revenues in 2007.

Atlas Solutions - Online Advertising: Advertiser and Publisher Ad Serving Solutions

Over half of a campaign’s users see ads across multiple placements, and a third of users see ads across multiple publishers.

This research indicates that, while a minority of users are reached across multiple sites, they consume media at a much higher rate than the users exclusively reached on single sites. Moreover, this overlapped group is often responsible for the majority of conversions.

It is critical to understand the drivers of overlap and keep these findings in mind:

• Measure the overlap in every campaign
• Maximize overlap for branding
• Manage overlap’s impact on frequency
• Keep buys that deliver targeted reach

 Download the electronic version of Study free of charge. 

SOL Live Ads

More Webby Awards Digital Advertising Nominations

Silverlight Showcase

Groundswell by Forrester Research

“Right now, your customers are writing about your products on blogs and recutting your commercials on YouTube. They’re defining you on Wikipedia and ganging up on you in social networking sites like Facebook. These are all elements of a social phenomenon — the groundswell — that has created a permanent, long-lasting shift in the way the world works.”
A Book by Forrester Research Analysts Charlene Li & Josh Bernoff

Also by Charlene: Social Technographics® - Mapping Participation In Activities Forms: The Foundation Of A Social Strategy US$279 at Forrester

 Download the electronic version of Book Excert free of charge.

International Herald Tribune

The effort to add to traditional advertising research techniques the tools of biometrics - measuring brain waves, galvanic skin response, eye movements, pulse rates and the like - is increasing.

Of the 19 Cannes and Effie honorees [measured by EmSense], 15 demonstrated "speed of engagement" that far outweighed the average commercial. "Typically, a spot engages with viewers in 5 to 7 seconds," she said. "The Cannes and Effie ads engaged, whether emotionally or cognitively, in 1.5 seconds."

"What we are really trying to measure and understand better is what consumers are engaged... The simple fact is the brain makes behaviour," Dr. Knight [working for NeuroFocus] continues. "If you can effectively measure the brain, which we think we can ... We can give you information that's not available by any other methodology. You just can't get it in conventional marketing."

Also see 'Scientists Unravel Attention Process'

Also see 'Microsoft's investigation into the subconscious' 

 Download the electronic version of Persuasion White Paper free of charge.

Richard Edelman Blog

The 2008 Edelman Trust Barometer is the agency's ninth Trust and credibility survey among global opinion-forming elite. This year, for the first time, the survey sampled two different age groups concurrently: 25-34 year olds and 35-64 year olds.

Here are [some] the key findings from this year's study:

• Communicate peer-to-peer, as well as top-down: There is highest trust in ‘people like me’ and experts such as ‘academics’, ‘doctors’ and ‘financial analysts.’
• Corporate communications must incorporate social media: As you might expect, social media matters most to the 25 to 34 age group.
• Engage the info-ential generation to build a beachhead: The 25-to-34 year old group is more trusting of business, less xenophobic and more reliant on multiple sources of information than their older counterparts. 
  

Social Media Take-Aways

A few interesting Internet-related points from the survey:

• Social media tools are are making inroads, but are still less trusted than any other information source
  • Blogs: Trusted by 26% of 25-34 and 19% of 35-64-year-olds
  • Social networks: 25% and 20%
  • Video sharing sites: 25% and 19%
• Younger people are more likely to talk online about about trusted and distrusted companies than older people
  
• Wikipedia is the second most credible source for young Americans (behind business magazines)
  • Blogs, YouTube and social networks are still close to the bottom, higher only than corporate or product advertising
• The growing influence of social media is reflected in the names the report gives to the different segments of “elites.” Despite the low trust still currently shown in social media tools, they label the largest segment “social networkers”:
  • Social Networkers (39% of “elites”)
    • Frequently share views on companies by word of mouth
    • Seeks company opinions from trusted sources
    • Want companies to listen
  • Social Activists (26%)
  • Solo Actors (11%)
  • Uninvolved (24%)
• Bloggers aren’t seen as credible spokespeople - just 4% of people would trust them
  • However, bloggers can also fall into other trusted categories like academics, analysts or doctors, in which case their credibility rockets
• Social media is more credible as a source of company information in Asian countries
  

 Download the electronic version of Trust Barometer free of charge.

 Download the electronic version of Key Findings of the Trust Barometer free of charge.

 Download the electronic version of Trust Barometer Presentation free of charge.

Contagious

The Attention Economy is upon us, be careful how you invest!

Consumer attention has become the rarest of commodities, as the principles of this ‘attention economy’ remind us. So the costs of production are no longer ‘cost drivers’, but have become the new ‘value drivers’. This includes the cost of writing, especially if we assume that these new formats demand the skills of authors rather than creatives.
These brands, acting as media or entertainment providers, are indeed targeting an audience, and are no longer addressing what they usually consider as ‘prospects’ or ‘consumers’. In an attention-driven economy, attention has to be earned and rewarded. An audience, by nature, is fickle and demanding: it will decide whether or not to interact with the content/experience offered by the brand according to whatever ‘perceived value’ the right communication strategy or PR campaign will manage to attach to it.
The ‘real value’ delivered by the experience (in this case an entertainment value, as we are talking about branded entertainment) will reward the audience for the attention it chose to allocate to the operation. As a result, audience satisfaction with the content/experience will be a key driver of talkability and actual recommendation.

A piece of content will live or die based on it's ability to forge a real emotional connection with the viewer.

The smart moneys says that the saviest consumer will soon demand entertainment in place of advertising.

 Download the electronic version of Branded Entertainment - Article free of charge.

MSN Video

The Fournaise Marketing Group - Global Benchmark Report

65% of all marketing spend in 2007 had no effect on consumers, according to The Fournaise Marketing Group's 2007 Global Marketing Effectiveness Report. Estimated wastage rates varied from 45% in business-to-business marketers through to 65% for business-to-consumer, with figures highest in more developed economies such as the UK, US and Australia compared to developing economies like China and India.

To compound the problem, the report revealed that just one in ten of all marketers worldwide have automated systems in place to track effectiveness of their communication spending.

Of the 55% of marketers that even track the results of their spending at all, 80% do so manually, spending hours capturing, compiling and analysing data.

Tracking marketing effectiveness topped the 2008 wish lists of 35% of marketers, and made the top three for 70%.

YouTube

MarketingSherpa: US$297

Find out what 1,038 B-to-B marketers in software, hardware and technology services industries revealed to MarketingSherpa about what works for lead generation.

Includes 11 new data charts and 2007 data on:
- Lead nurturing using mobile email, podcasts and RSS.
- Optimizing your homepage and lead gen offer form.
- White papers and webinars - do they still work?
- Office politics behind why the buying cycle is lengthening.

As marketers, we have to BE where our targets are looking. I agree with the report’s conclusions that we can all accomplish that via:

• Whitepapers on third-party sites
• SEO
• Paid search
• PR
• Brand building

 Download the electronic version of Benchmark Guide - Excert free of charge.

 Download the electronic version of Benchmark Guide - Presentation free of charge. 

 Download the electronic version of Benchmark Guide - PodCast free of charge.

Advertising Age - Digital [Login required]

The country's third-largest advertiser is getting ready to shift fully half of its $3 billion budget into digital and one-to-one marketing within the next three years.
The goal is to go well beyond the banner -- GM spent $197 million in online ads last year, according to TNS Media Intelligence -- to encompass gaming, search, mobile and a broad array of interactive applications, according to several executives close to the automaker. In the last few years GM has shifted several hundred million dollars from TV and print to digital and one-to-one, and that trend will accelerate, said the executives.

Online product research
But a pattern is developing among automakers whereby TV and print are deployed for launches in order to raise awareness, while more of the continuous branding and sales activity shifts online -- as automakers and many of their dealers accept that the purchase process increasingly begins, and sometimes even effectively ends, on the internet.

At a time when a slowing economy is taking a toll on advertising, the prospect of billions of dollars fleeing TV, print, newspaper, radio and outdoor is unwelcome, to say the least.

1. Includes broadcast, cable syndication 2. includes national and local Source: TNS Media Intelligence