How Digital Advertising & Marketing Disrupted Print / TV & Set to Overtake Offline Budgets ?

Digital Marketing Advertising Distupting Older ModelsAs 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 (more…)

Google’s Internet Advertising Model Under Pressure ?

Google Ads Reach the PeakGoogle the Search giant was the first company to meaningfully monetize the Advertising model across the spectrum of the Web from Large to the Smallest Publishing Networks. As other forms of web have emerged like Mobile Apps, Facebook, Twitter, etc the Ad Dollars are increasingly shifting to places where there is consumer engagement model.

In the latest quarterly results of Google, the number of aggregate paid clicks, or the total number of times a user clicks on an ad, increased 26% on a yoy basis in 1Q14. This compares with 31% yoy growth in 4Q13 and 20% yoy growth in the year ago period. On a sequential basis, paid clicks declined 1% which is below an average increase of 5% qoq over the prior three March quarters. CPCs declined 9% yoy during the period and were flat qoq (FX had a minimal impact on CPC growth). As management has stated previously, CPCs (and overall click trends for that matter) are affected (more…)

Future of Digital Advertising – Internet, Mobile & Video

Digital Advertising - Mobile, Internet, Video IndiaThe 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 (more…)

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. (more…)

Mobile Maps App Grow Faster – Solid Potential for Monetization

With the rapid adoption of smart phones, mobile map applications have become increasingly ubiquitous, and have quickly evolved from a simple utility app into a potential platform for mobile advertising and e-commerce.

The number of mobile map users has seen explosive growth in the past few years as: 1) maps have effectively grown to be a necessity for many mobile Internet users, and 2) most map apps are free of charge. According to iResearch’s latest report, the user base of mobile maps and navigation services increased 62.2%.

Market participants are experimenting with two potential business models around mobile map apps, i.e. mobile ads and e-commerce. Mobile map’s natural embrace of location awareness allows consumers to (more…)