â–¶ Banner Bonanza: According to a new report from BIA/Kelsey, the geo-targeted display (aka banner) ad market in the U.S. is expected to grow from $897 million in 2008 to $1.9 billion in 2013, representing a compound annual growth rate of 16%. The forecast also anticipates that the geo-targeted display market will grow from 10.2% of all display ads sold in 2008 to 15% by 2013.
Geo-targeting determines the physical location of a Web site visitor and delivers different content to that visitor based on his or her location, such as country, region/state, city, metro code/zip code, organization, IP address, ISP or other criteria.
The locally bought portion of the market, which primarily comprises small and medium-size businesses, will see the highest growth, at a CAGR of 66%, the report said. The segment will grow from $45 million in 2008 to $565 million by 2013. This market is expected to swell from 5% to 30% of the total geo-targeted market over the same period.
Report analysts anticipate that geo-targeted display advertising will soon be sold alongside geo-targeted search advertising as reseller sales forces look to localize the current glut of banner ad space in efforts to improve their economics and diversify their interactive revenue streams.
Another growing trend in the online marketing arena is behavioral targeting (retargeting), which is online targeted advertising delivered to consumers based on previous Internet actions that did not result in a conversion.
A previous SEMPO/Advertise.com study showed that only 30.5% of the marketers surveyed had tried re-marketing with online advertising, and 51% of them said it was “impactful.”
Source: BIA/Kelsey
â–¶ Global Ads Up: Of the three major ad spending forecasts issued every year at this time, agency folks will be most inspired by Magna’s report, which predicts global ad spending will rise 6% in 2010 and continue on a sustained pace of 5% increases each year through 2015.
Magna is predicting that the drop-off for 2009 will be 15%—a much more significant cut than the 10.2% decline projected by Publicis Groupe’s ZenithOptimedia and the 6.6% drop reported by WPP’s Group M. Other findings from the forecast include:
• Ad spending in the U.S. will be $133 billion in 2010.
• On a global basis, North America is expected to post 1% growth in 2010, the lowest amount of all regions, but up significantly from a 16% decline in 2009. The region is on pace for sustained growth rates of 2% over the next five years
• Latin America, in U.S. dollars, fell only 5% during 2009, led by a strong Brazilian ad economy. It is expected to grow by 12% in 2010, and continue with good growth over the next five years, up an average of 7% for each year through 2015.
• Europe, the Middle East and Africa will recover in 2010 with growth of 6%, up from a big decline of 20% this year. Growth in EMEA will continue at a 4% pace over the next five years.
• The Asia-Pacific region will have fallen by 6% but is expected to rebound to nearly 14% during 2010, with China emerging as the largest advertising economy in the region.
Source: Magna
â–¶ Ad Dollars Shift: A new Jack Myers Media Business Report highlights 19 advertising categories and nine “below-the-line” marketing communications categories. Among the findings, advertising will represent only 26.8% of total marketing expenditures in 2009 ($188 billion), with below-the-line non-advertising marketing categories, often called “unmeasured media” representing 73.2% ($513.5 billion). These categories include direct marketing, trade and consumer sales promotion, event marketing and public relations.
Marketers are drawing from these budgets to fund a growing array of media company offerings that exploit emerging interactive media capabilities.
The report estimates that media-directed promotion/event investments attracted an estimated $16.7 billion to media companies in 2009 and will generate an estimated $38 billion in incremental media company revenues in 2012. While these revenues are included in the financial reports of public media companies, Wall Street’s use of future-looking data that excludes this growth sector results in a negatively skewed perspective of the emerging media marketplace, the report states. PRN
Source: Jack Myers Media Business Report