Brand Strategy Key Findings: January 2013
| Internet Advertising Hits Historic High in Q3 2012 at $9.3 Billion |
Internet Advertising Hits Historic High in Q3 2012 at $9.3 Billion
Despite “economic head winds,” businesses invested heavily on internet advertising last fall. According to the latest Internet Advertising Revenue Report published by the Interactive Advertising Bureau (IAB) and PwC US, the third quarter of 2012 was the biggest on record for the online advertising industry in the US, showing an 18% jump compared to Q3 2011’s $7.8 billion and a 6% increase over Q2 2012 figures of $8.72 billion.
The survey tracks online advertising revenues from web sites, commercial online services, free email providers and other companies selling online advertising. The study is conducted independently by the New Media Group of PwC and sponsored by IAB. Full reports are issued twice a year with top-line estimates issued quarterly.
“Clearly, digital advertising continues its positive trajectory with incredible momentum,” says David Silverman, a partner at PricewaterhouseCoopers, LLP.
IAB’s President and CEO Randall Rothenberg emphasized that online advertising has become an effective way to engage today’s consumers “who are no longer passive, but are active participants in contemporary media online, through social media, and on-the-go with mobile.”
Television is still on top among marketers, securing $34.5 billion in advertising in Q3 2012. To no one’s surprise, only $4.5 billion was spent advertising in newspaper during the same period.
Bullets
- While marketers may strive to have website visitors fill out a whitepaper download form, or self-identify via the “contact me” button, the reality is that potential buyers are researching your company and products far in advance of their willingness to identify themselves. Studies show that up to 75% of research is done prior to self-identification. (http://goo.gl/TRqdb)
- 22% of online Americans say that they click on search engine ads, finds The Search Agency finds in a survey conducted by Harris Interactive. The results show a fairly significant degree of variation on a geographic level, with the proportion saying they click on search ads far higher in the South (29%) than in the Northeast (20%), West (19%), and Midwest (17%). The study also finds that 18-34-year-olds report being more likely to click on search ads than those aged 35 and older (30% vs. 18%). (http://goo.gl/ScgI4)
- More than three in four consumers say most of the claims that brands make in advertisements are exaggerated, according to a study by Lab42. Specifically, among surveyed consumers, 57.4% say advertising claims are “somewhat exaggerated,” and 19.0% say they are “very exaggerated,” Lab42 reported. Only 2.8% of consumers surveyed say the claims in various ads are very accurate: (http://goo.gl/cmtah)
- Edelman’s 2012 global “goodpurpose” study found a growing number of consumers considered “social purpose,” the leading purchase driver when quality and price were equal. And, increasingly, consumers worldwide didn’t see a contradiction in brands profiting from supporting causes. Seventy-six percent said it was OK for brands to make money as a result of social purpose, a 33% increase from 2008. (http://goo.gl/PtAsi)