Local ad spending expected to decline through 2013, interactive segment the only bright spot

March 17, 2009 Leave a comment

According to the BIA and The Kelsey Group, economic conditions over the next few years will reduce overall local advertising spending through 2013.  Local advertising revenues in the United States are expected to decline from $155 billion in 2008 to $144 billion in 2013, representing a negative 1.4 percent compound annual growth rate.

Only one segment is expected to show growth over that time, which is interactive advertising.  The others should see marginal or rapid declines over the next 1.5 to 3 years. 

Tom Buono, president and CEO, BIA Advisory Services, sees an accelerating shift to online and an increasing demand for “accountability metrics”.   According to the survey, interactive share of local ad spending will grow from 9 percent ($14 billion) in 2008 to 22.2 percent ($32 billion) in 2013.   For purposes of the survey, “interactive” includes mobile, Internet Yellow Pages, local search, online verticals and classifieds, voice search, and email marketing.

In contrast, the “traditional segment” is expected to decrease from $141.3 billion in 2008 to $112.4 billion in 2013 (CAGR of -4.5%).  This area includes newspapers, direct mail, television, radio, print Yellow Pages, cable television and magazines.  Neal Polachek, CEO of The Kelsey Group, indicates that the share shift “could actually be more pronounced if the major traditional media are not able to integrate new interactive products into their bundle.”

With yet another major print newspaper (the Seattle Post Intelligencer) closing its doors, the transition already feels very real.  If traditional media companies are to thrive over the next 10 years they will need to continue to embrace interactive strategies far more aggressively.

For more information about the survey and its methodology, click here.

Filed under advertising, Business, Economy, Marketing Tagged with , , , , , , , , , ,

Survey Shows Frequent Online Shoppers Respond to Personalized Ads

February 5, 2009 Leave a comment

 

ChoiceStream, a provider of personalized product and display ads for large retail and entertainment brands, released their latest online personalization survey.   In it they indicate that retailer’s most attractive prospects–those who spend the most money and shop most frequently–are more likely to click on personalized ads than non-personalized ads.

choicestream1Overall, 39 percent of consumers are more likely to click on an ad if it is personalized – a meaningful percentage in its own right.  But the number climbs to 58% for those who shop online at least several times a month.  And the bigger the spender the greater the interest in personalized ads, with 50% indicating they are more likely to click on them.   Contrast this with only 22% of infrequent shoppers who make that claim.  In addition, 50% of the biggest spenders indicate that they are more likely to click on personalized ads than on non-personalized ones, vs. 32% of the smallest spenders.  

The data also supports a similar pattern in terms of consumer attention to the ads.  Over 41% of those surveyed indicate that they will pay more attention to advertising if it is personalized based on their tastes and interests.   That number increases to 49% of consumers who spent more than $250 online over the past six months, and falls to 36% for those who spent between $1-100.

The survey was completed by 504 online shoppers across a variety of age categories.  The bottom line is that if you are a retailer or manufacturer with loyal customers and those customers shop online and spend over $100 with you, personalized advertising that exposes products they are interested in can yield positive results.

To see a summary of the ChoiceStream survey, click here.

Filed under eCommerce, Manufacturers, Market Research, Marketing, Retailing Tagged with , , , , , , , ,

Survey: Allow Your Customers to Interact via Internet and Mobile

January 20, 2009 Leave a comment

The results are clear.  Even if you don’t sell your products online (and you should), information about what you sell, how much it costs, and special offers need to extend to your customer’s mobile devices and computers.

As reported by SmallBusinessNews.com, a recent survey from NCR Corporation indicated that 72% of U.S. consumers are more likely to shop with businesses that give them flexibility to interact easily via online, mobile, and kiosk self service channels.   “Consumers in these uncertain times are clearly showing a preference for retailers that can meet their expectations through self-service options on the web, mobile and in store. These technologies are playing a growing role in helping retailers deliver competitive advantage,” said Mike Webster , chief strategy and communications officer for NCR Corporation.

Two other datapoints of interest include:  1) 53% of consumers using the Internet more frequently to research products and prices, and 2) 46% wanting to receive price comparisons, product reviews, coupons, promotions and store sales information online or via email. 

And speaking of mobiles, according to Informa Telecoms & Media’s Global Mobile Forecasts, annual revenues from the global mobile market will top (US) $1.03 trillion by 2013, when the number of subscriptions worldwide will have risen to more than 5.3 billion.  Considering that it took over 20 years to reach 3 billion subscriptions, businesses should take note of this accelerating growth rate.

 

 

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