Major internet companies still generate significant revenues from advertising models. As the softening macroeconomic environment continues to affect overall ad budget sentiment, internet companies are embracing opportunities and challenges by adapting to changing dynamics.
Specifically, 2016 has been challenging for search advertising post the Zexi Wei incident in April and stepped-up regulatory policy on
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Impact of Internet Advertising on Agencies / Other Industries
We previously discussed on How Internet Advertising has Disrupted Traditional Marketing channels such as Paper / TV / Radio. Today, we’ll highlight the impact of Digital A&M on Agencies and other industries.
Impact on Media Owners
The move to online significantly lowers the barriers of entry for new potential competitors. Clearly, the most famous examples involve exciting tech-based start-ups — the Google’s, Facebook’s, Netflix’s of this world. We would also argue that the move by selected larger media conglomerates to own media channels in international markets (e.g. Discovery with Eurosport/SBS) is also perhaps a symptom of the same trend.
This is not a challenge for 100% ad funded media companies, but it is for those media companies that enjoy a dual stream of monetization in an analogue world, (e.g. print newspapers/magazines). For example, a regional newspaper may be able to defend a regional classified model online – this has
How Digital Advertising & Marketing Disrupted Print / TV & Set to Overtake Offline Budgets ?
As the Internet goes mainstream and customers spend more and more time online, marketing dollars continue to migrate to digital channels. This trend is not new and from the earliest days of the commercial Internet, unsophisticated banner ads and then search advertising gained traction and turned into large markets. Over time, Internet Advertising began to cannibalize offline marketing spend in areas such as print, radio, TV and other mediums, although offline marketing continues to dominate the marketing budget and digital channels make up well less than 50% of marketing and advertising spend.
As we look forward, we see a landscape that will ultimately drive digital marketing to be the primary channel, indeed in some countries in Europe and Asia, this is already the case where various
MSME Sector Embrace Online Advertising – Cheap, Better RoI
We talked to businesses such as Restaurants, SMEs, job consultants, real estate builders and brokers using online advertising for feedback. Online classifieds are perceived to be cheap and most are likely to increase their online spend. It is not a case of “either-or” as many are using multiple sites.
The cost of advertising through Justdial, Google or Zomato is lower and better targeted than a newspaper or radio ad; for a real estate broker in Mumbai an annual subscription to 99acres or Magicbricks is paid back through commissions from a single rental deal. Online currently
Future of Digital Advertising – Internet, Mobile & Video
The past decade has seen significant migration of advertising dollars from traditional media like TV and newspapers to digital channels like internet and mobile devices.
Mobile Advertising
Mobile devices – smartphones and tablets – are changing the consumption pattern of various publishing platforms and content. User engagement on mobile devices is significantly better than on the desktop given the 24×7 availability of mobile communication amongst other things. The best examples of this shift are Facebook and Twitter, where engagement and monetisation have significantly moved to the mobile format. On a worldwide basis, mobile advertising still represents less than 2% of total advertising spends and around 8% of total spends on digital media. As brought out by examples of Facebook and Twitter, it is imperative for other platforms to build their mobile presence more extensively in terms of apps and otherwise, which in turn
Mobile Advertising – Apple Devices Command Ad Premium over Android
The most important and fastest growing segment of Internet advertising is mobile advertising, which makes tracking the underlying key drivers and trends of great importance. Mobile eCPMs increased 68% y/y in 3Q13 and 9% sequentially despite what is typically a seasonal slowdown in Q3 (note that MoPub’s data showed a 10% seq. decline in 3Q12). A key driver of this price increase, in MoPub’s opinion, is the increase in the number of competitive bidders in the auction.
How Facebook Plans to Monetize Instagram – Mark Zuckeberg’s Plans
Facebook the World’s Largest Web Platform with heavy customer engagement and also the owner of Instagram shared soem insights on how it plans to monetize the exponentially growing platform on Mobile & Web.
Facebook will launch innovative ways of displaying ads on Instagram is a positive largely expected by the market. Further, we believe Zuckebreg’s history of successful product management by balancing user experience with advertiser demand in the roll out of in news feed ads on mobile bodes well for Facebook’s coming efforts in monetizing its Instagram asset. That said, we would not be surprised if the ramp in ad load and as such monetization for Instagram does not quite match that of Facebook’s mobile in feed ad products given Facebook’s broader use case and user base. Nonetheless, in our
How Content and Advertising eco-system is evolving for MultiScreen Connected Web ?
These days it is common to see when performing online activities, consumers prefer to move between devices[Browsing Web on your iPad and accessing Facebook / WhatsApp on Mobile]. In addition, increasingly, consumers apply two or more devices simultaneously, such as finding critics’ reviews or cast information on mobile phones while watching a movie. Given consumers’ multi-screen activities, cross-platform marketing strategies demonstrate favorite outcomes, especially those campaigns that are packaged with mobile ads.
Multi-Screen Mobile Advertising Strategies
Thus, we think that mobile ads could be more effective
Facebook Expected to Report Mobile Ad Revenue at 30% of Total Revenues
With many Ad Networks reporting Facebook mobile came in at 35% of client spend in the quarter and a few even seeing 40%, we see potential upside risk to both our mobile estimate and consensus. Our contacts again reported meaningful sequential growth in spend with Facebook, with performance of the entire Facebook platform beginning to rival that of search for some of our contacts’ clients. Analysts expect mobile ad revenue of $425mn, up 13% qoq and representing 30% of total ad revenue for 2Q13, similar to last quarter. For the desktop business (which consists of news feed ads as well as right hand rail), we expect revenues of $994mn, up 14% qoq and up 1% yoy
For many, App Install ads were a key driver of mobile performance, with