Tag Archives: online advertising

Growing effect of online advertising in US, OPA study suggests

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Online advertising is going to overtake radio in the advertising market, MediaGuardian reported today.

Richard Wray’s article stated that while Carat – part of the Aegis marketing empire – had reduced its forecasts for the global advertising markets for 2008/9, it also said online advertising will continue to grow, overtaking radio as the third most popular advertising medium after TV and newspapers and magazines.

MediaGuardian’s report is interesting to look at in the light of statistics made available last week by the Online Publishers Association (OPA).

The US-based figures suggest that ‘consumers on all three types of local media sites – newspapers, television stations and magazines – are more likely to take action after viewing a local advert than visitors on all other local content sites’.

As part of the OPA study, JupiterResearch surveyed 2,069 US online consumers ‘who qualified as Local Online Content Users, by currently using online yellow pages, newspaper, TV, magazine, city guides, user review sites, portals or classifieds for local information.’

Here’s the breakdown:

Per cent of consumers taking action after viewing local adverts

  • Local Newspaper Site: 46%
  • Local Television Site: 44%
  • Local Magazine Site: 42%
  • User Review Site: 39%
  • Portal: 37%

Click here to view the full report and follow this link for the press release.

OUT-LAW.com: complaints about online content and ads outstrip TV and newspapers, says ASA

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The annual report from the Advertising Standards Authority (ASA) has suggested that the number of complaints made to the body about online advertising is for the first time higher than those relating to TV or newspapers.

ASA received 2,980 complaints about the internet in 2007, though 72 per cent of these related to content and as such fell outside of the authority’s jurisdiction.

“Interestingly, these complaints are almost entirely about truth, accuracy, misleadingness, and availability – the ‘meat and drink’ of the ASA’s daily work on print and broadcast ads,” said Chris Smith, chairman of ASA.

“We hope for an early outcome to the detailed discussions under way within the industry, led by the Advertising Association, on the development of ways to ensure continued responsibility in advertising in new media settings.”

Behavioural ads form of ‘free speech’, says Newspaper Association of America

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The Newspaper Association of America (NAA) has weighed in on the debate surrounding behavioural targeting of newspaper ads online, saying privacy standards proposed by the US’ Federal Trade Commission (FTC) could ‘infringe on newspapers’ First Amendment rights’, according to a report on Online Media Daily.

Targeted online advertising, says the group, is “not only truthful advertising speech, but advertising speech that meets their [the audience’s] interest”.

Ads are a form of free speech so long as they are not misleading, the association wrote in its comments to the commission:

“Efforts to restrict what newspaper websites publish, and the basis by which editors and advertisers make decisions regarding what to publish, run directly counter to core First Amendment rights, and can amount to a prior restraint.”

The Guardian recently pulled out of a behavioural advertising deal with Phorm, because of ethical concerns, while web creator Tim Berners-Lee voiced concerns over Phorm’s technology.

The FTC’s guidelines on this form of advertising suggest websites allow users to opt-out of the tracking process and seek consent before making use of sensitive information relating to users’ behaviour.

Online publishers in ‘bullish mood’ despite economic downturn

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Digital publishers in the UK saw a 52 per cent growth in total digital revenues last year, according to the Association of Online Publishers (AOP) annual census of its members.

The figures show the industry to be in ‘a bullish mood’ despite holding concerns over the economy’s impact on the industry, said Ruth Brownlee, director of the AOP, in a press release.

With regards to the future of the industry, members said high speed broadband provided the greatest opportunity for their businesses, while competition from non-traditional outlets is perceived as the biggest threat.

When questioned on content distribution 64 per cent of respondents said publishers should make their content available on third party websites, as well as a range of other platforms.

The figures suggest support for this distribution model with increased investment in IPTV (up 30%), mobile (20%), vodcasting (22%), podcasting (17%) and RSS feeds (9%).

The key findings from the census include:

  • members forecast an 8 per cent total business growth with digital expected to grow by 31 per cent;
  • 80 per cent of members expect to increase the number of digital staff hired this year with 62 per cent saying cross-media skills will be significant in the future;
  • revenue from online advertising increased by 33 per cent last year and 80 per cent of those questioned said the current online advertising model was ‘a sustainable revenue stream’;
  • high speed broadband (92%) and behavioural targeting (84%) are viewed as the biggest opportunities for business – other possibilities included content streaming (70%), mobile (74%) and user-generated content (84%).

Just over half of those questioned were in favour of a standard online measurement system – which would be a focus of the AOP’s working groups, Brownlee said.