Posts about Ad
The Center for Media Research reveals that ad spending on citizens’ media (aka user-generated content, ugh) is doing the hockey-stick:
…[A]dvertising spending on user-generated online media – blogs, podcasts and RSS – did not begin until 2002, but this combined spending has grown to $20.4 million by the end or 2005, a 198.4% increase over the 2004 level. Spending on blog, podcast and RSS advertising is projected to climb another 144.9% in 2006 to $49.8 million. Some of the key growth drivers are continued audience fragmentation, the perceived ineffectiveness of traditional advertising, and the desire to reach the elusive 18- to 34 year-old demographic.
Some key findings:
* User-generated media remains primarily national in scope with 98.1%, or $20.0 million, of all advertising spending coming from the broader market in 2005.
I predict that the next phase will have local and nicheier content growing as the infrastructure for advertising on them gets easier and as smaller advertisers discover and learn about the opportunty.
* Blog advertising accounted for 81.4%, or $16.6 million, of total spending on user-generated online media in 2005, but blog ads will comprise only 39.7%, or $300.4 million, of overall spending in 2010
… as other citizens’ media — podcasts, vlogs, wiki products, and things not yet invented — grow. Witness:
* Podcast advertising totaled only $3.1 million in 2005, but is projected to reach $327.0 million in 2010, when it will account for 43.2% of all user-generated media advertising
* Spending on RSS (Really Simple Syndication) advertising totaled $650,000 in 2005 and will grow to $129.6 million in 2010
* Total spending on user-generated online media is forecast to grow at a compound annual rate of 106.1% from 2005 to 2010, reaching $757.0 million in 2010
* Technology was the largest single category at $4.0 million in 2005, due primarily to the technology-savvy early adopters of user-generated media
* Auto was the second largest marketing category, generating $3.9 million in 2005, as car manufacturers utilized user-generated media to market their higher-end models to the “influential” demographic…
[via MIT Advertising Lab]
Here’s my latest Guardian column pushing the idea of an open ad marketplace to support and explode citizens’ media. Much more on this later.
Two groups of media’s moneymen held their confabs this week and they each spent some time self-flaggellating, as well they should.
The Times reports from the American Association of Advertising Agencies:
“I think our industry would be better if agencies were as comfortable with change as we like to tell clients they should be,” said Ron Berger, chief executive and chief creative officer for the New York and San Francisco offices of Euro RSCG Worldwide, part of Havas.
“I think our industry would be better if all of the people who speak at industry functions and say ‘It’s all about big ideas’ actually had a few” …
And Jon Fine reports in Business Week on the meeting of the Newspaper Association of America:
This year’s opening event was at the magnificent Field Museum, on a large open floor bookended by two massive dinosaur skeletons. Many attendees joked about this. To the executive to whom I said such an obvious metaphor would never, ever, appear in this column: I lied….
At the podium, Jay R. Smith, Cox Newspapers’ president and outgoing NAA chairman, gives a valedictory with the broad theme of “stop whining.” It begins with and repeatedly uses the phrase, “It wasn’t supposed to turn out like this.” He also says: “The world changed a lot. Newspapers changed a little.” …
And Washington Post Publisher Donald Graham tells the group when discussing newspaper strategy that “the only honest answer is we don’t know how our future will work out.”
OK, let the flaggellating end. Let the overdue strategizing finally begin. The time for mourning the past is long over. The time for shrugging at the future is over, too. You no longer get points for admitting that you’re in a mess. You only get points for taking brave action to get out of it.
This is an advertiser’s wet dream: to create media so you don’t have to buy time or space on it. Bacardi is launching a 24-hour music channel.
B-Live – a 24-hour, online music station – is planned as a long-term project that will eventually enable listeners to supply content.
The service is the latest example of a brand attempting to bypass more traditional forms of advertising and appeal to consumers directly….
The Times reports today that when Chevy opened up a site for people to remix Chevy Tahoe commercials, some folks used it as a chance to make snarky anti-SUV ads. Now you’d expect this story to end with Chevy’s ad agency backing up fast, killing the commercials, striking back at the unruly mob, and praying not to get fired. But no:
A spokeswoman for Chevrolet, Melisa Tezanos, said the company did not plan to shut down the anti-S.U.V. ads.
“We anticipated that there would be critical submissions,” Ms. Tezanos said. “You do turn over your brand to the public, and we knew that we were going to get some bad with the good. But it’s part of playing in this space.”
Well, bravo. That’s not only right, it’s smart. It’s the realization that the public owns the trust put in brands and you can’t try to get into the conversation and then shut half of it off. Besides, it’s not as if any of these subversive spots are going to convince SUV drivers to reform their ways. You can bet that SUV fans will enjoy defending their vehicles of choice. It’s like the Republicans hoping that the Democrats really do try to censure Bush; it will only bring out more Republicans to the polls. I don’t care what you say, just spell the URL right.
: LATER DISCLOSURE: A few hours after posting this, I got notice from Federated Media of an ad buy from… GM Planworks. It’s a different campaign but in the interest of full disclosure, it’s the related to the same big company. I also know people at GM Planworks at introduced them to About.com, where I consult, for a pitch.
Here’s the pinko commie marketing manifesto:
* Commie Marketing is about the end of the Marketing Manager, Director and anyone else who thinks they have control over the message, market or ‘brand’
* The commons…the producers…will decide what makes it ‘to market’, what flourishes, what dies, what is ignored, what is celebrated…whatever.
* No marketing budget, big or small, will change your advantage in this new world.
* Amateurism means passion, curiosity, intrigue and growth. What the hell is a professional? You get paid for doing what I’m doing right now? Cool. How do I get that gig? …
* Having a corporate blog does NOT mean that you get it. In fact, it mostly means that you don’t.
* The voices of the community, your employees and your competitors are more valuable than anything you could ever say. Listen. No…really…listen.
* Small is the new big. I know it sounds cliche, but beyond lipservice, let’s embrace it. …
OK, except for that line about marketing budgets. I want my piece first.
At OPA, Esther Dyson asks advertisers whether they are being disintermediated by Google and/or users. Rishad Tobaccowala, the master of the media soundbite and head of Publicis’ new Denuo, says no one is being disintermediated. The people want power — I believe he said we want to be entertained, connected, and empowered — and we will do what we do and marketers and media have no choice but to align with it. He gets applause.
Rishad talks about overdoing the age of relationships. “I want my headache to go away, I don’t want a relationship with Tylenol.”
I’ll paraphrase: Don’t overvalue brands. Don’t overdo CRM. Think human.
Asked about the value of research and measurement, Rishad says the results are in: Digital works.
He maintains that Google is out to become the eBay of advertising, but with one crucial difference: “eBay makes the market but doesn’t take sales,” he says. “Google is the seller and the market. Eventually, someone has to wake up and say, ‘This is [BS]‘.”
And we have to wake up and create the open marketplace that will compete with Google’s coming monopoly. We have only ourselves to blame.