As Tablet And Video Display Gains Momentum In Europe, Forrester Expects Online Display Revenues To Reach €11.9 Billion In 2019

Luca Paderni

This is a guest post by Samantha Merlivat, a researcher serving Marketing Leadership professionals.

Forrester’s Western European Online Display Advertising Forecast projects that online display advertising spend will rise at a CAGR of 10.3% between 2014 and 2019, jumping from €7.3 billion to €11.9billion. Two factors will account for the double-digit growth rate:

  • Mobile display will pick up quickly over the next five years, with tablet taking off full speed in virtually every European market. With their larger screen real estate and growing role in customers’ path to purchase, tablet-based ads will grow at a 40.5% CAGR over the period, attracting a third of total online display revenue by 2019.
  • Video and rich media formats are also growing strong. Video in particular will increase 20% annually over the next five years. Attracted by the higher opportunities for story-telling and building engagement, marketers will be willing to invest higher CPMs in these formats.
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Video Growth Drives Display Advertising Spending To $37.6 Billion In 2019

This is a guest post by Samantha Merlivat, a researcher serving Marketing Leadership professionals.

US online display advertising will grow from $19.8 billion in 2014 to $37.6 billion in 2019, at a compound annual growth rate of 13.7%. The offline ad market, in comparison, will grow at a modest 1% CAGR over the same period. Forrester just released the latest US Online Display Advertising Forecast report, which details why the online display industry will have video and mobile to thank for the double-digit growth rate:

  • Video advertising will represent nearly 55% of online display advertising revenue on desktop by 2019. Its growth will be cannibalizing primarily static display. Marketers’ preference for video and rich media reflects their new ambitions for online display: They are moving beyond the notion of display as a direct response tool, and starting to explore display as an engagement and branding tool.
  • Mobile ads will represent 39% of total online display in 2019 compared with 24% in 2014. Tablet display, in particular, will be a medium to be reckoned with in the future as it comes to play a greater role in customers’ path to purchase and in web-influenced shopping.
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How Software Ate The Advertising Industry

Jim Nail

With the Wall Street Journal declaring Ad Week "Programmatic Advertising Week" and Advertising Age's September 29 issue titled "Advertising Age of Automation," it's clear that adtech is all the rage.

This might be a good time for you, gentle reader, to revisit my report from this past February, How Software Is Eating Video Ads And, Soon, TV. (I adapted this title with a tip of the hat to Marc Andreessen!)

Invest In Analytics To Meet Your Mobile Objectives

Thomas Husson

A year ago, I blogged about the fact that the app economy was blurring the lines and opening up new opportunities, with a lot of new entrants in the mobile space, be it with mobile CRM and analytics, store analytics, dedicated gaming analytics, etc.

Since 2010, more than 40 companies have raised about $500 million in that space! Watch it closely – consolidation will continue, as evidenced recently by Yahoo’s acquisition of Flurry.

While a lot of innovation is happening on the supply-side, too many marketers have not defined the metrics they’ll use to measure the success of their mobile initiatives. Many lack the tools they need to deeply analyze traffic and behaviors to optimize their performance.

Fifty-seven percent of marketers we surveyed do not have defined mobile objectives. For those who do, goals are not necessarily clearly defined, prioritized, and quantified. Only 38% of marketers surveyed use a mobile analytics solution! Most marketers consider mobile as a loyalty channel: a way to improve customer engagement and increase satisfaction. Marketers must define precisely what they expect their customers to do on their mobile websites or mobile apps, and what actions they would like customers to take, before tracking progress. Too many marketers focus on traffic and app downloads rather than usage and time spent. While 30% of marketers surveyed consider increasing brand awareness as a key objective for their mobile initiatives, only 16% have defined it as a key metric to measure their success!

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Forrester’s First Asia Pacific Social Media Advertising Spending Forecast

Xiaofeng Wang

As social media adoption continues to grow in Asia Pacific (AP), so too does marketers’ spending on social advertising. Forrester’s just-published Asia Pacific Social Media Advertising Spending Forecast, 2014 To 2019 report projects that social media ad spending will continue its rapid growth over the next five years. In this period, marketing leaders in Australia, China, India, Japan, and South Korea will increase their investment in advertising on social media (excluding mobile messaging apps) at a 21.6% compound annual growth rate, reaching $5.8 billion by 2019. The rapid pace of growth is mainly due to:

  • Low market maturity coupled with a large and active social media population. Collective social ad spending in these five AP markets end up being less than half of that in the US in 2014. The maturity of the AP social ad market is low considering the large numbers of people in the region who use social media, and as this market matures it will grow faster than in the US.
  • Increasing social media consumption will continue to boost ad spending. The percentage of the online population using social media in the five AP markets will increase by double digits from 2014 to 2019. Forrester projects that further Internet adoption will bring even more consumption of social media.
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The Rise Of Dial-Up, Dial-Down Advertising

Ryan Skinner

Advertising as we’ve always known it, online or off, worked a bit like this:

Produce advertising content />> Place advertising content

Here, advertising content had no life independent of its placement. Print ads, TV ads and radio ads lived only on the servers of the ad companies who created them, and then the media who carried them, for however long they carried them.

Now, a new kind of advertising has emerged:

Promote earned or owned content />> Promote more if it works (or less if not)

Here it’s a question of identifying content for promotion that’s already in the wild, on a blog, in a discussion forum, uploaded to YouTube, and then paying to drive more eyeballs to it, because it supports your brand, or it converts interested communities into customers.

It’s particularly attractive for two very good reasons:

  1. It’s already published, and has often already shown potential to create results for the business (in the form of awareness, leads or even sales), and
  2. You can often dial up the eyeballs that go to it, or dial them down, as you see fit, based on performance.
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The Four Social Programs Every Marketer Should Study — A Free Webinar

Nate Elliott

Nearly all marketers say they use social media. But many aren’t getting much value from their investments. Despite marketers’ excitement about social media, many say the channel simply doesn’t offer enough return on their investment; for instance, barely one-half of those who buy Facebook ads say they’re satisfied with the business value those ads provide. The sobering reality is that a decade into the era of social media, many social marketers remain baffled by the channel.

The good news? There are success stories you can study to see how social media can work for companies like yours. In April 2014, Forrester announced the winners of the eighth annual Forrester Groundswell Awards. The awards recognize the very best in social marketing — focusing on programs that go beyond engagement metrics to deliver real business value to both B2C and B2B marketers in a range of industries.

Forrester clients can check out our report, The Four Social Programs Every Marketer Should Study. But even if you’re not a client, we’d like to offer you this content in a free Webinar on September 18 — just click here for details.

If You Are Thinking About Paying Your Influencers...Stop

Kim Celestre

Paying influencers, which Forrester defines as independent bloggers, industry analysts, and mainstream journalists, is a bad idea.

Public and analyst relations professionals have been managing influencer programs since long before the first utterance of the words "social media." They know how to strike the right balance of keeping influencers informed while gently motivating them to engage with their brand through 1:1 relationship building. Unfortunately, social media has ignited a population of "influencers" who are in it for the financial rewards more than for developing their personal brands. This has led to many brands jumping on the "pay for play" influencer program bandwagon, which, for some, has led to terrible results. For example, Microsoft learned the hard way back in June when its agency blasted out a paid blogging campaign invite to a large audience of influencers. And other brands that have been caught paying bloggers and influencers to write positive product reviews have also paid the price.  

Paid influencer programs diminish the authenticity of the message you are trying to amplify, have legal implications (if not carefully implemented), and can really irritate influencers who detest pay-for play-programs. Yet over 35% of marketers still use financial incentives. My simple advice: Don't do it!

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What To Expect From Berlin's IFA And From Apple's Upcoming Announcements

Thomas Husson

Will the iPhone 6, to be announced on September 9, have NFC and a Sapphire Crystal display?

What about the new Samsung Galaxy Note 4, to be announced at Unpacked on September 3? And will the new Nokia Lumia 730 (a.k.a Superman), to be announced on September 4have a 5-Megapixel rear-facing camera?  

This week's scheduled launch events from Samsung, Sony, Microsoft, Motorola, LG, and Apple will cause lots of comparison about device features – with about 15 new devices to be launched along the IFA show in Berlin.

It simply does not matter.

Forrester made the call that competition shifted from devices to ecosystems about two years ago. New devices are simply vehicles for increasing the value of the entire digital relationship across a rich digital platform.

As my colleague Frank Gillett puts it, “Samsung's challenge is to establish an enduring relationship with customers, rather than being an interchangeable Android device maker – and it will take more than a new Galaxy Note to do that.”

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Content Distribution Is A Hot Mess Right Now

Ryan Skinner

[UPDATE 4 Sept: I have updated this post to the original draft, which includes specific and strong recommendations to publishers and marketers. They had been redacted, but a colleague asked "What would you DO about this?" so I saw fit to reinclude them. These are my answers; there are no easy solutions, but these are a step towards guidelines. Updates at the end of the piece, in bold.]

Publishers Are Engaged In Self-Harm, With Marketers As An Accessory

You remember when the email spam problem maxed out almost a decade ago? Or when content farms threatened to turn Google search results into useless piles of keyword-slurry? Or peak belly fat?

There should be a word for the moments when the mechanisms that aim to keep our electronic information corridors running well fail.

It’s shaping up to be one of those moments for the content distribution space (and particularly its subdiscipline native advertising, or sponsored content).

You can pity the reader who arrives at an article on many publishers’ websites today; I’m talking about you, Guardian and Forbes, but also you, New York Times and Washington Post. How is the reader to know if the article they’ve come to read is the product of a straightforward pay-to-publish play, an informal “link exchange” relationship, an “influencer” play, an independent opinion piece, or a piece of pure editorial? They can’t.

For the record: The “clear labeling” commandment is a fig leaf. By the time a reader has gotten so far through the article that they’re wondering why it keeps promoting a particular mindset, product, or opinion and started searching for cruft around the article, the trust in the information, the source, and the medium is lost.

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