From volume driven to conversation rates – the trend continues!

 

February 23, 2010

The impact of volume, broadband penetration, and advanced marketing technologies in the development of online advertising in key markets.

  

Which markets to watch out for?

  

Analysis

 Low growths and fierce competition in many markets were the key worrying factors for marketers in 2009.The impacts of the global economic downturn were seriously felt as global media ad spend went down by -10%. In spite of the double digits decline in total media ad spend; the industry experienced some key trends that are changing the face of advertising. Among these trends were: an increased in paid search, integrated online media contents, online videos and social networking, etc. Furthermore, low conversation rates remain to be a great concern for global marketers wanting to divert online marketing efforts to emerging economies with larger online audiences. However, the likes of Latin America, Russia, China, and Eastern Europe are markets to watch out for due to the huge growth rates in online ad spend in these regions.

Landscape overview

 The state of the online industry in emerging economies in comparison to EU and North America.

With 12.4% share of total ad spend; internet advertising is currently the third largest medium after television and newspaper. It’s expected to reach 16% by 2012.[i]Paid search is by far the fastest growing type of internet advertising in major advertising markets in Europe and North America. The US remains the largest and most significant ad market with online ad spend totalling €16,6 billion in 2008. In IAB Europe, online ad spend in the same period were 12,9 billion.[ii] In 2009, online ad spend was down by -4% in the US as Europe slightly recovers by a +2 % growth[iii]. As European online ad spend continues to grow, the gap between the US gradually gets smaller.

The advertising industry continues to evolve; thanks to advanced marketing technology and increasing broadband penetration in many regions. In the global landscape overview as illustrated below, a significant trend is outlined. Despite the fact that display advertising ad spend continues to decline in the matured/developed online ad markets, it is still widely embraced in the emerging online ad markets with less advanced marketing technologies.

The State of the Industry

 

Online ad spend growth rates in emerging advertising markets including LATAM, Indonesia, and South Africa are way higher than growth rates in the developed online ad markets including Western Europe and North America. As developed markets reach their ‘growth peak’ , further growth in these markets will be achieved as a result of trends in the use of paid search, online video, social networks, and other forms of content integration in online advertising. Display or banners are no longer the key focus in these matured markets as paid Search now accounts for over 50% of total online ad spend.

On the contrary, new comers including LATAM, India, Indonesia and South Africa, are experiencing a different online advertising climate as display remains the most significant ad format.  A key reason for this is the low broadband penetration and lack of advanced marketing technologies in these markets that is yet to march the scale of improvements in the developed online ad markets.  Use of display forms of advertising remain to play a dominant role despite the increasing popularity of search and online videos, etc.

Furthermore, in developing advertising markets with low broadband penetration but high growth potentials including Spain, Italy, Eastern Europe and China, the online industry is growing faster than those in the most developed markets in Western Europe and North America. Between 2006, 2007, and 2008, for instance, Spain’s online ad spend grew on average 57%, and was the highest growth reported in IAB Europe.

 The bar chart below highlights the growth rates of online ad spend in the respective countries. It clearly indicates each countries position with regard to their growth potentials.

Moreover, many advertisers from developed countries are not really moved by the pace of improvements in developing markets especially the growing online population in key advertising markets in LATAM and Asia. They still see it as volume driven rather than ROI. They argue that conversation rates are too low as compared to the ad views. Additionally, the percentage of the online population in these markets that shop online is still very low, which in many cases is a key issue for marketers.

Nevertheless, developing economies with fast growing broadband penetration and larger online population including China, Brazil, India, and Russia are without any doubts the next online ad markets to watch out for.

 For more information, call  DQ&A at  +31 70 300 1950 or e-mail your questions to benelux@dqatraffic.com.

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[i]Source: ZentithOptimedia: Global ad market has stabilised; prospects for 2010 and beyond improving.

[ii] Source: IAB US and IAB Europe.

[iii]Source: eMarketer

Düsseldorf, 17. February 2010 - Epsilon International, the leading  e-mail marketing services firm and DQ&A, the specialist for digital campaign management have announced a strategic partnership. The agreement, which was signed earlier this year covers the Dutch market.

Dutch headquartered DQ&A specialises in the technical implementation of digital ad campaigns and supports its customers in planning, monitoring as well as in the reporting of online and mobile campaigns from their offices worldwide.

Within the partnership DQ&A will expand its portfolio via Epsilon’s web-based email DREAM marketing technology in the Netherlands. The aim is that in future DQ&A will offer broad consultancy services alongside providing the DREAM technology in association with its own customer solutions.

“We are really pleased that we have DQ&A as our reseller in the Netherlands and thereby can strengthen our presence on the European market. Our new distribution partner has not only got excellent contacts to marketers, but additionally enjoys an outstanding reputation within the industry”, comments Swen Krups, Country Director Epsilon International Germany.

“DQ&A and Epsilon International are a natural fit when it comes to our joint capabilities, teamwork and approach to meeting customer needs – this partnership will not only bring added value to our clients but also will strengthen our position in the Netherlands as leaders in digital campaign —management”, concludes Marco Dohmen, CCO at DQ&A.

Image -> Ian Hitt, Managing Director from Epsilon International EMEA and Peter van Wingerden CEO from DQ&A International signing the partnership.

If you can’t measure it, why use it?

By Osman Bangura 

January 19, 2010

Did Online lose its momentum during the recession? Why would marketers continue to shift their advertising budgets to Online? What are the trends responsible for changing the face of the interactive advertising industry?

 

Quick Facts:

• Online was the only major media that grew in North America and major advertising markets in Europe and Asia during the worst months of the recession in H1 2009.[i]
• For the first time, online overtake TV in the UK accounting for nearly 24% of total advertising spend in H1 2009.[ii]
• Q3 World Internet Users reached 1, 7 billion, meaning one in every four persons in the world are internet users.[iii]
•  Targeted online ads are efficient and measurable, and they deliver the highest ROI than any other major media.
•  Global mobile phones (GSM & 3GSM) – more than 4 billion connections.[iv] (GSM World, February 2009)

 In 2009, if you your business was not online, you didn’t exist! 

 In 2010, if you are not on Social Networks, you are not online!

 

 A look back at 2009

2009 is history. A new year, new beginning; but the most controversial trends in 2009 will continue to shape the face of the interactive advertising industry. Among the most outstanding were:

• Online video advertising, which grew faster than any other media type
•  Mobile internet and mobile ads achieved ‘tipping points’
• Unstoppable growth in social media and its contribution in boosting display ad impressions
• Growth in total online ad spend in the worst times of the great recession

These are all areas of consideration that will play a big role in shaping marketers strategy for 2010 and beyond.

More and more traditional advertising budgets going digital

Given the scope of its ROI and level of measurability as a medium to target and tailor campaigns, online ad spend continued to grow despite worsened recession in Q1 2009.  Additionally, as more marketers continue to take their media investments online, a shift in the relocation of traditional budget continues. The biggest change from traditional media advertising to online according to marketers occurred in TV (according to 36% of respondents), direct marketing (30%), Magazines (30%), and Newspapers (27%).[v] 

Furthermore, 94% of European marketers plan to increase their online ad spend in 2010 and 93% plan to do the same in 2011.[vi]

Mobile internet reaches tipping point

Mobile internet is without any doubt “the one to watch”. The adoption of mobile internet outpaces desktop internet adoption and it is expected to be bigger as more users will be connected to the internet via mobile devices than desktop PC’s within 5 years. This explosive growth is as a result of 5 converging trends, namely: 3G, social networking, video, VoIP, and advanced mobile devices. [vii] With global mobile ad spend growing at over 70% to reach $13 billion by 2013, brands seeking to engage consumers on the go will need social-awareness applications for targeted ads based on location.[viii]

Social Media – Still hype, or the future of online advertising?

Some still see it as ‘hype’, volume driven with less ROI, and other marketers consider it as the future of interactive advertising. However, social networking sites accounted for one out of every five display ads viewed online in the US[ix], and one out of every 4 display ads viewed online in the UK.[x]  Be it a hype, or reality, SocNets are visited by over two-thirds of the global online population. SocNet and blogging sites now account for one in every 11 minutes spent online and it is the 4^th most popular global online activity.[xi] Marketers that are yet to be moved by its potential may title social media as ‘Just about ad impressions’ and less ROI. However, sooner or later, social media will play a key role in digital branding and advertising as the success of a brand will depend on its popularity in social networking sites. Among other things that marketers will need are: getting the right content, presence in the right network, and the right combination of marketing tools. Nevertheless, Social media has its drawbacks if used with the wrong marketing tools. Most common mistakes by marketers are: wanting to control it, not listening to their online audience and selecting the wrong brand advocates, etc. Also, a social media strategy that results to success for company A may result to failure for Company B.

Finally, are your ads not delivering the desired results? Are the effects measurable? Is Monetizing and ROI troubling you? Where should you start? Call DQ&A at +31 70 300 1950 or e-mail your questions to benelux@dqatraffic.com. We are here to help!

 

 

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[i] Source: ZenithOptimedia Press Release July, 2009

[ii] Source: IAB UK 2009

[iii] Source: Internet World Stats 2009

[iv] Source: GSM World, February 2009

[v] Source: EIAA Bi-Annual Internet Ad Barometer H2 2009

[vi] Source: EIAA Bi-Annual Internet Ad Barometer H2 2009

[vii] Source: Morgan Stanley, The Mobile Internet Report December 2009.

[viii] Source: eMarketer, 2010 predictions Round-UP, December 31 2009.

[ix] Source: ComScore, June 2009

[x] Source: ComScore, October 2009

[xi] Source: Nielsen, Global Faces and Network Places, March 2009

Voorburg, 22^nd  December 2009. DQ&A, European leader in digital campaign management, with its headquarters in the Netherlands and with offices in Germany, Sweden, South Africa, Brazil and Spain, has announced the acquisition of Trafficking Solutions Spain.

“By means of this acquisition, DQ&A Spain has improved its products and services range, supported by a large professional team who has extensive experience and is being able to provide a great level of service. This acquisition has placed DQ&A immediately into the leadership position in Spain.” says Marco Dohmen, DQ&A International Director of Sales.

The acquisition will provide existing Trafficking Solutions customers with more possibilities than ever to increase their contracted services through new collaboration opportunities as well as providing the extended product portfolio and solutions which DQ&A already offers its current customers in display and e-mail campaign management. In 2010 DQ&A will expand its current range of products with search and analytics services.

DQ&A’s most prominent customers include publishers, advertisers and agencies at an international level.

“Through DQ&A Spain we are completely committed to the Spanish market and convinced that there is no better partner than Trafficking Solutions for fulfilling this commitment”, added Dohmen, who also affirmed that “from our customer’s point of view, this business transaction signifies the comfort of being able to count on excellent service levels during the forthcoming years, helping us to generate new business”.

“Santiago Morán, Sales Manager at DQ&A Spain, underlined that “The current Trafficking Solutions team will join up fully with DQ&A Spain’s current team of professionals, with the objective of strengthening the company’s professional network to the maximum. Existing customers will be able to rely on the same level of support as always but with the multiple advantages that this acquisition will provide”.

 

For more information please contact Heleen van Oord – DQ&A

Tel: 070-3001950 / 06 21 24 55 24 of via heleen@dqa.nl

Heleen van Oord (DQ & A) on 2010 at the IAB Interact 2009 Congress in The Netherlands: “In 2010, more data will be released and interpreted by marketers to then be converted into knowledge. It will involve even more relevance, the right match with the right message at the right time for the right audience in the right screen: mobile, TV and laptop. Technology will be even more important. “

Heleen van Oord | DQ&A | IAB Interact 09 from punkmedia on Vimeo.

re blogged out of www.marketingfacts.nl

Hamburg, 1^st of December 2009 – change in leadership in the Hamburg office of DQ&A, the international specialist in digital campaign management. Marco Dohmen, previous branch manager in Germany has been seating in the board of directors of the Dutch company as the Chief Commercial Officer (CCO) from Q2 this year and takes over the responsibility for EMEA in this position. His successor is going to be Torsten Ostmeier as sales director in the German speaking markets.

Read More >>

Another successful interactive networking event for pure inspiration and ‘food for thought’

Six key reasons to attend:

• Get inspired by experts
• Get the latest and most relevant trends in online marketing
• Get informed about challenging and successful case studies
• Broaden your current network
• Share knowledge, interact, and socialize with marketing professionals from across The Netherlands
• Meet future potential clients

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Next week is the first edition of Online Tuesday will take place in the Felix Meritis hall in Amsterdam. Every second Tuesday of the month the most relevant trends in the online marketing business will be discussed by market leaders and specialists. The conference will last one hour and it will be followed by
networking drinks, champagne to celebrate the opening Tuesday!

Online Tuesday is an initiative of DQ&A, Energize, NewPeople, Marketing Facts and Traffic4u, who came together to bring these sessions to the online industry in the Netherlands.

DQ&A is committed to share knowledge and innovation with its employees, clients and the industry in general, that is why we‘ve decided to support an initiative that is fully dedicated to this cause.

Read More >>

Today Google announced the launch of the new DoubleClick Ad Exchange, a real-time marketplace for display advertising space.

By establishing an open and neutral marketplace where prices are set in a real-time auction, the Ad Exchange enables display ad space to be allocated much more efficiently and easily across the web.

“Display advertising is not living up to its potential with too many advertisers ignoring its reach and power and too many publishers selling their ads below their market value. The new DoubleClick Ad Exchange is a real-time marketplace which helps online publishers on one side, and ad networks and agencies on the other, to buy and sell display advertising space at the right time and right place”, said Laurent Cordier, Ad Exchange European Sales Director. “By bringing them together in an open marketplace where prices are set in a real-time auction, the Ad Exchange enables display ads and ad space to be allocated much more efficiently”, she added.

Heleen van Oord, founder of DQ&A mentions, “It is key in DQ&A’s strategic positioning to bring expertise to the markets we operate in. Innovation and technology rule our business today and the new DoubeClick Ad Exchange is here to show us how expertise and technological innovation meet in one single product.

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By Christophe Nau, Tech. Consultant at DQ&A Germany.

According to the Urban Dictionary malvertising is “an internet-based criminal method for the installation of unwanted or malicious software through the use of internet advertising media networks and exchanges.”

It can take two main forms:

-  Attackers can serve harmless banners but direct users to a website containing malicious code. In that case, the advertising message will be extremely attractive (“you are our 31359^th visitor today. You won 1 million €!”) to incite users to click on the ads. Other examples fake virus infections to urge users to download fraudulent software.

- Attackers can highjack legitimate banners and insert malicious code. With this kind of attack, the user might be infected simply surfing on legitimate, prime and reputable websites!

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