Last Week In Digital Advertising #9

At the starting blocks of 2011 and I can already see the trends emerging for the topics that will be the mainstay of Last Week In Digital Advertising for the next twelve months. Should I just give up now? Regardless, here we go for the first view of the new year and, periodically, I’ll check-in with this list to see if we’re talking about other things.

At the starting blocks of 2011 and I can already see the trends emerging for the topics that will be the mainstay of Last Week In Digital Advertising for the next twelve months. Should I just give up now? Regardless, here we go for the first view of the new year and, periodically, I’ll check-in with this list to see if we’re talking about other things. And yes, I am well aware that this isn’t dissimilar in concept to my already published 2011 Digital Advertising Predictions but it is based on what the recent buzz has been and continues with my idea of a news review.

Privacy

Clearly, one of the most significant things we’ll be talking about all year is privacy and, quite rightly too. Despite the fact that direct mail has been tracking our lifestyle choices and lifestages for years, doing it in real-time via a computer appears much more intrusive and, as an industry, we have to clearer about what we are doing. Spanfeller Media Group CEO Jim Spanfeller was asked by AdExchanger what he saw at the heart of the consumer debate about privacy:

I think the bigger issue is that people want control. They want control over their experiences. And so I agree. I think there are people, lots of people, who will give up data about themselves willingly in return for something.

And control seems to be a key theme of the privacy story this week. eMarketer quotes a survey by PreferenceCentral which found that “the more people know about behavioral targeting, the less willing they are to receive free content in exchange for relevant ads” but principal analyst David Hallerman wonders if, “people really view behavioral targeting as an invasion of privacy, or do they dislike it because they have no control over how marketers are using their personal data?” Publishers, unlike most marketers, have first party relationships with consumers and, Jonathan Mendez argues, there is an implicit understanding that this data is going to be used to make the user’s experience better. That’s a good position for publishers as long as the data is treated with care.

Kevin Lee at ClickZ writes under the headline “If Tracking Is Outlawed, Only Outlaws Will Have Tracking” and suggests that ads should have more space devoted to explaining what data the ad used in the hope that consumers will “leave well enough alone and prefer targeted ads to untargeted ads”. Of course we have an embryonic system to show such information in the form of the Better Advertising initiatives who, this week, became Evidon. The name chosen to “evoke a connection with the word “evident,” which expresses our commitment to bringing clarity to the online community”. Their blog has more. Clear? Well, Mozilla’s aiming to making it all clearer with their alpha release of privacy icons which they are proposing are adopted to let users know how data is used. I like the idea.

Interesting to see The Wall Street Journal run a piece on how Google is trying to square using all their data with the privacy implications of that use. An interesting piece but amusing to see an article on privacy based on a leaked, internal, confidential document. Not sure I see the public interest value in raising privacy flags on a bunch of ideas that aren’t products but, nonetheless, interesting reading.

Video

Video is at a crucial turning point, so says Jill Druschke in AdWeek and I suspect we’re right. It is one of the things to watch on my Horoscope for 2011. And, while I think cross-media comparison of ad-spend has some holes and should be read with caution, it is worth noting that online video represents only 7% of the entire ad market. Things are moving, though. New Media Age reported that “video ad network WebTV Enterprise saw ad revenues triple last year” with a 244% rise in video ad revenue in 2010 compared to the previous year and seems be a decent indicator for that sector of the ad business.

MediaTel noted that worldwide PVR sales are expected to hit the 50 million mark in 2014 but will, eventually, be overtaken by internet-enabled television sets. Around 350 million connected TVs are expected to be sold worldwide by 2015, according to Parks Associates (source: MediaTel). Adding a note of caution into the discussion, however, news that a new content distribution network built by BT will ensure greater bandwidth for users wanting to watch online video without disruption, even during peak online usage times (source: MediaTel). If such initiatives lead to a 2-tier web will consumers pay for it or head straight back to broadcast? An interesting one to watch.

Another note of caution was injected into the video discussion by Netimpreative, who note that “Online video rentals ‘failed to live up to hype’ in 2010” quoting Screen Digest’s figures that, in the US, network-delivered rentals and sales via the Internet and subscription TV systems accounted for $2.3 billion, representing 12.2% of the total market. At this stage, is 12% that bad?

Real Time

We’re moving to a more automated world, that’s for sure. How far we go is still to be seen but publishers everywhere are being encouraged to look at real-time trading systems. Eric Picard’s “Why publishers are afraid of real-time bidding” has some interesting things to say about data leakage and pricing while Jonathan Mendez suggests that real-time systems can make data pricing “more automated and more intelligent” (yes, second quote but it’s a good piece).

There is still some way to go. According to eMarketer, “Less a third of US publishers (31%) offered media buyers the possibility of real-time bidding on their ad inventory in 2010” but that will grow this year and it’s time for publishers to look at real-time systems in more detail. At ClickZ, Rob Beeler asks “What can a publisher – and more specifically, ad operations – do to ensure that RTB will help grow the business?”

Spend Watch

We can’t resist any little change in the revenue forecast numbers and I know I’ll be quoting lots of articles that predict even tiny changes in spend throughout the year. This last week or so we had a nice crop. New Media Age ran with “Display overtakes search in 2011 ad spend growth predictions” Advertising Age ran with “Local Advertisers Finally Join Ad Recovery” as in the third quarter of 2010, smaller US advertisers increased spending 8.1%, compared with a 9.1% hike in the top 1,000. The Economist told us that global spending on advertising will grow by 4.5% in 2011, led by online advertising which will increase by 16%.

In the land of mobile game advertising, Juniper Research discovered marketers spent $87 million worldwide advertising on mobile games in 2010. By 2015, the amount will be 10 times greater, at nearly $900 million (quoted at Miki Devic’s posterous blog). And talking mobile, I was surprised to see that only 12% of the UK population have mobile internet access, according to The British Population Survey and quoted by Netimperative.

Those will be four of the big news sectors I’ll be following in the coming weeks but what else did we learn this week? The Internet is now the main national and international news source for people ages 18 to 29 in the US says Pew Research (quoted at Mashable); SNL Kagan told us the number of location-based services users nearly tripled in 2010, reaching 33.2 million (via eMarketer); Internet Retailer reported that this Christmas shopping-related Google searches from mobile devices are up 230% and, of course, we heard again and again about the unstoppable rise of Facebook.

I’m already watching to see if any of these trends make next week’s news.

Author: jon

Jon Curnow writes on curnow.org about things that interest him. The site has been around for many years in various forms and he always wants to write much more here than he does.

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