Yet More Evidence That Advertisers Are Pulling Money Out Of TV | ||
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There is yet more quantifiable evidence advertisers are switching off from TV. Data from The Standard Media Index — which claims to pull 80% of US advertising agency spend from the booking systems of five of the six global media global media holding groups, as well as some independent agencies — shows that television ad spending showed a “considerable drop” in October, and was down 9% on the same period last year. The bad performance of TV during the first month of Q4 also dragged down the US advertising market overall by 4% on the previous year, SMI says. Cable TV spending declined 7% year-over-year, with the scatter market — where TV ads are sold closer to the broadcast date, rather than the big locked-in chunks of the upfront market — now representing 23% of overall spend, up from 17% in 2013. On the broadcast side, spending was down 9%, which the scatter market representing 16% of all revenues, up from 11% last year. What this shows is that advertisers are waiting until far later in the day to make their TV advertising decisions and are instead choosing more flexible media. It used to be that most TV was brought in the upfront market, where broadcasters create a limited window in which brands feel they need to locking the best deals they can by buying in bulk, which has kept prices high for decades. That desire for flexibility is reflected in the rise in digital ad spend, which continues to grow apace. Overall, digital advertising grew 11% year on year (although some of this spend does indeed go back to the very same TV broadcasters and their online, mobile and video on demand properties.) Somewhat counterintuitively, however, newspapers — a sector struggling with declining print sales — also saw year-on-year ad revenue growth in October. Newspaper ad revenue in the US was up 5% in the month of October and 4% in the calendar year to date. Of all the US titles, advertisers spent the most with the Wall Street Journal, which marked an 80% year-on-year ad revenue increase in October and now has an 11% share of the total newspaper revenue in the region. (Remember this number only represents spend from major agencies, not all advertisers — it would be a huge surprise if the WSJ actually booked a topline increase that large.) The SMI October figures tally with recent data from Nielsen on TV consumption, which showed TV viewing was down 4% last quarter. They also line up with the trend detailed in the Cabletelevision Advertising Bureau’s October report, which showed the first revenue decline in the in the cable upfront market for four years. This week AOL CEO Tim Armstrong told the audience at Business Insider’s Ignition Conference that in the past six months something has changed within the TV industry: He thinks digital video advertising is finally starting to suck dollars from TV advertising. Off stage, he also pointed toward a Wall Street Journal interview with the CEO of Omnicom’s media operations Daryl Simm who revealed the agency was recommending clients shift 10% to 25% of their budgets away from TV to digital. Despite the recent drop-offs in spend, TV is still an incredibly valuable and effective platform for brand advertising. A UK econometric study released earlier this year from Ebiquity, commisioned by UK TV marketing body Thinkbox, found that every £1 spent on TV advertising in the UK generates £1.79 in profit for companies, far ahead of the next most effective medium, radio. Join the conversation about this story »  | ||
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The 10 Things In Advertising You Need To Know Today | ||
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Good morning. Here is everything you need to know in the world of advertising as you set yourself up for your day. 1. There is yet more evidence US advertisers are switching off from TV. Data from the Standard Media Index shows TV spending dropped a "considerable" 9% in October. 2. AOL CEO Tim Armstrong told the audience at Business Insider's Ignition conference that he thinks digital video advertising is finally starting to suck dollars from TV advertising. He referenced an advertiser who was getting a rebate from his TV ad budget because ads were not going to be filled, Omnicom telling clients to switch up to 25% of their TV budgets away from TV to digital, and that young people are sitting in the living room watching video on their phones rather than looking up at the TV.] 3. Google has admitted that more than half of the display ads it serves across its platforms are never seen. A study from the company found that 56.1% of the impressions served on Google display platforms were not viewable because they appeared outside of the browser window. 4. Here are 15 things hardly anyone knows about Innocent, Europe's biggest smoothie company. Innocent turned 15 this year and its history is littered with unusual quirky stories. 5. This is how Facebook could become as big as Google. RBC analyst Mark Mahaney has given Business Insider access to the slides he presented at the Ignition conference, showing the massive growth opportunities ahead for Facebook. 6. LinkedIn is an extremely valuable advertising platform to target high-earning individuals. Around 40% of LinkedIn users earn more than $100,000 per year. 7. Facebook's Atlas is set to carry Instagram's ad tech load, Digiday reports. Previously advertisers using Instagram could only track which photos users like and the accounts they follow, now they can get more insights into what those users do outside of the app, "all the way to the check-out line." 8. Google is planning to revamp a number of its biggest products — such as search, YouTube and Chrome — for kids, USA Today reports. Pavni Diwanji, Google's vice president of engineering, says the company knows the push will be controversial (particularly when it comes to advertising) but adds that children are already using these technologies anyway so the better approach is to make it more safe and fun. 9. Veep actress Julia Louis-Drefus is the new face of Old Navy, the Hollywood Reporter reports. The five-time Emmy Award winner stars in a humorous campaign that debuted Wednesday. 10. Tumblr now has a "buy" button, TechCrunch reports. Users that posts links from sites including Kickstarter, Etsy, Artsy and Do Something will see action buttons appear in teh top-right corner of the posts for people to "buy," "browse," "pledge," or "do something." Join the conversation about this story »  | ||
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Yet More Evidence That Advertisers Are Pulling Money Out Of TV | ||
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There is yet more quantifiable evidence advertisers are switching off from TV. Data from The Standard Media Index — which claims to pull 80% of US advertising agency spend from the booking systems of five of the six global media global media holding groups, as well as some independent agencies — shows that television ad spending showed a “considerable drop” in October, and was down 9% on the same period last year. The bad performance of TV during the first month of Q4 also dragged down the US advertising market overall by 4% on the previous year, SMI says. Cable TV spending declined 7% year-over-year, with the scatter market — where TV ads are sold closer to the broadcast date, rather than the big locked-in chunks of the upfront market — now representing 23% of overall spend, up from 17% in 2013. On the broadcast side, spending was down 9%, which the scatter market representing 16% of all revenues, up from 11% last year. What this shows is that advertisers are waiting until far later in the day to make their TV advertising decisions and are instead choosing more flexible media. It used to be that most TV was brought in the upfront market, where broadcasters create a limited window in which brands feel they need to locking the best deals they can by buying in bulk, which has kept prices high for decades. That desire for flexibility is reflected in the rise in digital ad spend, which continues to grow apace. Overall, digital advertising grew 11% year on year (although some of this spend does indeed go back to the very same TV broadcasters and their online, mobile and video on demand properties.) Somewhat counterintuitively, however, newspapers — a sector struggling with declining print sales — also saw year-on-year ad revenue growth in October. Newspaper ad revenue in the US was up 5% in the month of October and 4% in the calendar year to date. Of all the US titles, advertisers spent the most with the Wall Street Journal, which marked an 80% year-on-year ad revenue increase in October and now has an 11% share of the total newspaper revenue in the region. (Remember this number only represents spend from major agencies, not all advertisers — it would be a huge surprise if the WSJ actually booked a topline increase that large.) The SMI October figures tally with recent data from Nielsen on TV consumption, which showed TV viewing was down 4% last quarter. They also line up with the trend detailed in the Cabletelevision Advertising Bureau’s October report, which showed the first revenue decline in the in the cable upfront market for four years. This week AOL CEO Tim Armstrong told the audience at Business Insider’s Ignition Conference that in the past six months something has changed within the TV industry: He thinks digital video advertising is finally starting to suck dollars from TV advertising. Off stage, he also pointed toward a Wall Street Journal interview with the CEO of Omnicom’s media operations Daryl Simm who revealed the agency was recommending clients shift 10% to 25% of their budgets away from TV to digital. Despite the recent drop-offs in spend, TV is still an incredibly valuable and effective platform for brand advertising. A UK econometric study released earlier this year from Ebiquity, commisioned by UK TV marketing body Thinkbox, found that every £1 spent on TV advertising in the UK generates £1.79 in profit for companies, far ahead of the next most effective medium, radio. Join the conversation about this story »  | ||
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10 Things In Tech You Need To Know Today (AAPL, GOOG, MSFT) | ||
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Good morning! It's a rainy day in London. As usual. Here's the tech news you need to know today. 1. North Korea has denied involvement in the Sony Pictures hack. The government had previously said "wait and see" when asked about it. 2. An anti-discrimination bill in Alabama will be named after Tim Cook. It's his home state. 3. Google has invented a new kind of CAPTCHA. You only need to tick a box. 4. Real-estate startup Zillow has been hit with a lawsuit claiming that it subjected female employees to "sexual torture." There's a series of text messages backing up the claim. 5. Barclays says that Apple has strong potential to grow its services area. Margins could be close to 100%. 6. The Sony Pictures hack revealed the salaries of over 30,000 Deloitte employees. Senior managers earned $460,000. 7. Microsoft's CEO says that he will try and build a more diverse workforce. He was previously criticised for remarks about whether women should ask for pay rises. 8. A lawsuit is accusing Apple of using iTunes for price-fixing. A group of customers say that Apple is harming competition in the music industry. 9. Apple has patented a system that will see iPhones twist in mid-air to stop the screen cracking. It's important to mention that Apple does file a lot of patents, though. 10. Apple exec Eddy Cue has defended the company's price-fixing strategy for eBook sales. He says he'd "do it again." Join the conversation about this story »  | ||
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Putin says West uses sanctions to undermine Russia | ||
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Moscow (AFP) - President Vladimir Putin said on Thursday the West had used the Ukraine crisis and the annexation of Crimea as a pretext to slap sanctions against Russia. "Every time someone believes Russia has become too strong, independent, these instruments get applied immediately," Putin said in his state of the nation address, referring to sanctions. The West "would have thought up some other excuse to contain Russia's growing possibilities" if there had been no tension over Crimea and Ukraine. Join the conversation about this story »  | ||
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