Tag Archives: display advertising

Google attempting to woo publishers with advertising plans

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In a charm offensive, Google has been posting a series of reports on the future of display advertising. Yesterday’s entry focused on the search company’s efforts to help publishers make money online.

We believe that the new technology we’re developing to make display advertising work better will help to grow the display advertising pie for all publishers, by orders of magnitude. We shouldn’t be asking how publishers can eke another 5 or 10 per cent out of display advertising in the next few years. We should be looking at how the industry can double or triple in size.

Part of the challenge is reducing the administrative costs of display advertising for publishers, says Google, as these currently account for 28 cents of every dollar spent on these ads.

Full post on the Official Google Blog at this link…

Increase in UK online display advertising activity, says Nielsen

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Online display advertising activity in the UK has increased year-on-year despite the current economic climates, figures from Nielsen Online for the first quarter of 2009 are suggesting.

The number of display advertisers, the number of individual campaigns and the number of ad creatives used all rose by 21 per cent compared with stats for the same period last year.

Over 5,900 advertisers ran online display ad campaigns in Q1 2009 with a monthly average of 11,000 campaigns.

“Whilst other media have suffered in the amount of advertising they attract, online continues to thrive. Although advertisers are probably getting more bang for their buck through falling online advertising rates, the strong increase in the level of display advertising activity is reason enough for online publishers and media owners to be optimistic about the year ahead – particularly if the retail and finance sectors continue their heavy activity,” said Alex Burmaster, communications director, online, in the report.

In the news and information sector, OMNIsport was the most active advertiser in online display advertising.

InPublishing survey: ‘Behind the turnover figures, the industry is essentially still in profit’

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The publishing industry is in ‘remarkably robust’ health, according to a new survey of 187 companies – encompassing 911 consumer magazines, 855 B2B magazines and newsletters, 413 newspapers (both regional and national) and a total of 1,056 individual websites.

The survey, which was a joint project between Wide Area, Wessenden Marketing and InPublishing magazine, suggests a slide rather than plunge in industry turnover – partly a result of ‘headcount reduction and ruthless cost control, where marketing budgets in particular have suffered’.

“Online growth is clearly outstripping print revenue trends; circulation revenues are performing better than advertising sales; and subscription sales better than retail copy sales. ‘Other revenues’ (which include reader offers, events & services, as well as contract publishing) are showing medium growth, behind online, but ahead of print revenue streams,” the survey suggests.

This is an extensive piece of work, well worth a read (you’ll need to register), and includes sub-sections dealing with:
Online opportunities and threats
Website profitability and costs
How publishers are planning to ‘manage the future’

Some key findings from the report are below:

  • 59 per cent of those surveyed have under 10 per cent of their turnover coming from online/digital activities;
  • Online revenue streams are showing the most growth with paid-for online content, classified online and display advertising ranking above print revenue streams;
  • 20 per cent of publishers surveyed are looking to grow staff numbers, while 54 per cent will hold steady;
  • Online, the highest threat publishers are facing is a lack of resources/focus/knowledge e.g. not having the skills in-house to adapt to new technologies or resources to develop online offerings;
  • Cutting costs and overheads and developing more innovative, multimedia advertising strategies are seen as the most critical tasks for publishers going forward.

Hubdub introducing ads to website

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Hubdub – the prediction site where users bet virtual money on news events – is to introduce advertising onto the website.

In an official blog post, Hubdub said it would be trying out Google Adsense as well as display advertising.

The company hopes the advertising will not negatively effect the look or functionality of the site, which recently signed deals with the Independent and Reuters to feature their news stories on the website.

Ernst & Young: Online search will help reverse fortunes of display and classified ads

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Growth in online search will offset the the downturn in online display and classified advertising in 2009, according to new analysis from Ernst & Young.

Less money will be spent on advertising focused on reach with investment in performance-based advertising, such as search, expected to increase, suggested the ‘media and entertainment by numbers’ report.

Internet advertising is likely to overtake TV advertising this year as the largest ad medium, the report said.

“But to assume that a media accounting for a fifth of all advertising budgets could be totally immune to a downturn would be too optimistic,” the report added.

Publishers will be affected most by the move to more interactive ad models, including cost-per-click (CPC) or cost-per-action (CPA), as this will cause CPM rates for banners and display advertising to fall.

Online classified advertising will be affected more by the general economic climate, for example fewer jobs and properties available, than by changes within the advertising industry itself, the report added.

[Read Journalism.co.uk’s full breakdown of the Ernst & Young report]

Online revenues up for Independent and Johnston Press, but print ads fall

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At the same time as reports of significant decline in UK and US print advertising, online advertising revenue is up for the Independent News Media Group (INM) and Johnston Press.

Johnston Press, the publisher of the Scotsman and over 300 regional newspapers and websites, announced that digital revenues had grown by 52.1 per cent to an unstated figure, in its interim results for the 26 weeks ending June 30.

The publisher reports that it will ‘continue to experience significant growth in overall audience reach – combining our newspaper readership with the rapidly increasing number of people visiting our websites.’

Meanwhile, INM, which – among other titles – publishes the Independent, the Belfast Telegraph and the Independent on Sunday, saw online revenue from advertising grow by 23.3 per cent to €15.9 million in the six months prior to June 30, it reported in its half-year results.

INM’s online revenue (including its stakes in other online ventures) rose buy 57.1 per cent to €30 million over the same period ‘reflecting good organic growth and a continuation of its multimedia investment strategy across all regions,’ the report said.

Online classified and display advertising now represents around 4 per cent of publishing advertising for the group. This increase was helped by ‘strategic’ investments in services such as price comparison, online gaming, image search, and mobile.

Nonetheless, online was included in INM’s overall group costs, which increased by 1.4 per cent. The publisher also recorded ‘certain online and education start-up development costs’ of €6 million and €19 million.