by Paul Joseph
May 4, 2011
Featured
Social media as an industry will continue to boom, it will not be saturated in the near future. According to BIA/Kelsey, a social media advisor firm, social media advertising revenue will go up to $8.3 billion within 2015, while In 2010, revenue spent on social media advertising was $2.1 billion . So, the industry would see 295% hike in 2015 compared to the 2010 ad spending. Along with this prediction, BIA/Kelsey made another proclamation. The firm informed that by 2015, non-display ad formats will muster popularity. Twitter’s business models which include the promoted tweets, profiles and trends are good examples of non-display ad formats. Although these ad formats do not generate much revenue now, BIA/Kelsey seemed optimistic when they said that by 2016, there will be scores of new non-display ad formats which will generate $600 million from null at present. Out of the said $8.3 billion , $7.7 billion is expected to be earned from display advertisement, while the rest will come from non-display advertising. BIA/Kelsey’s report brings with it good news for Facebook as it suggests that a major share of the revenue earned by social media advertising by 2015 will belong to Facebook. A point that is worth mentioning here is that BIA/Kelsey doesn’t include virtual goods and rewards, social gaming and social commerce within their definition of social media advertising. So, if earnings from those segments are added as well, the projected revenue will be even greater. A social media platform like Facebook does depend on ads for revenue but it has other business models as well like Credits, which is expected to become a major part of Facebook’s revenue stream. We had also reported earlier this year that Facebook is looking at more revenue sources past games. With these in mind, it seems like the prediction made by eMarketer that ad spending on Facebook will reach $4 billion in 2011 and the current prediction of BIA/Kelsey seem right. Jed Williams, a chief analyst at BIA/Kelsey’s Social Local Media practice said in a press release: It’s no surprise that Facebook commands a dominant share of all social ad impressions served and ad revenues generated. As the social market leader, it already serves the most display ad impressions of any digital company, surpassing both Yahoo and Google. We fully expect Facebook to increase both impression share and ad revenue, as buyer awareness accelerates and creative formatting and targeting improve to optimize performance. However, one might look at the report from a skeptic’s point of view and argue that the projection is mostly speculative. Numbers often lead to sheer confusion. It happened with Efficient Frontier, where had to defend their premise that Facebook ad prices has climbed up by 40 percent this year. But even though skepticism can grow, one thing is undeniable, social media’s ad spending has still many cups to win and many stones to turn. Check the Winners Of WATAwards Here Related Posts Marketers, Social Media, Barriers And Methods – eMarketer Report Facebook To Reach Half Of The U.S. Population In 2013: eMarketer Facebook And Twitter Were The Most Unsafe Social Networking Sites In 2010 Recap 2010 : Social Networking After Facebook, Twitter, And Orkut Accounts, Priyanka Chopra Launches Website
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by Paul Joseph
April 11, 2011
Featured
Even a few years back, advertising agencies, business houses and marketers in India weren’t that familiar with all the technicalities upon which Google Adwords was based. But, the scenario is changing very quickly. Even small and medium companies nowadays are putting various marketing strategies in effect to attract consumers and while doing so, they are subscribing to Google’s Adwords platform. To augment this awareness, Google is rolling out an advertising campaign called “Watch the Space” to popularise its display advertising platform. Through this initiative, Indian agencies will be introduced to Google’s display ad platform. Shailesh Rao, Google’s head of media and platform for Japan and Asia Pacific said, “With the campaign, we want to explain how Google is helping to make display advertising even better and to showcase the opportunities in this space for agencies and marketers in India.” Indian advertising agencies and marketers will benefit out of this initiative as Google’s display networks, including YouTube and Orkut, are apt for brand promotion. Along with leveraging Indian advertisers, Google is also looking forward to address the display advertising arena with better technology. Rao said that over time Google has been investing in search engine advertisement and it has produced satisfactory results, similar types of techniques should be applicable to display advertising. Google is putting emphasis on the creative aspects of the advertising industry. Though basically an internet company, Google will include print and outdoor ads in the campaign. Web is definitely a viable medium, but when it comes to creativity, print, electronic and outdoor ads also stand tall. Customers often feel inclined to a particular product after watching an attention-grabbing TV commercial. Google has taken a good approach not to undermine their significances but incorporating them within the web. As Rao said that they are developing a technology that, “unlock creativity enabling true audience engagement combining the benefits of sight, sound, and motion from traditional television advertising with the interactivity of the web.” Rao also said that there are many dimensions, yet to be discovered within the realm of display advertising industry. Already display ads fetch $2.5 billion to Google globally. Once it grows further, Google will see more cash and all parties, the advertisers, agencies and publishers will get benefited. So, Google is heading to the right direction. What’s your take on Google’s initiative to popularise display advertising in India? Showcase Your Digital Work Here! Win An Award! Log onto WATAwards Related Posts Google Zeitgeist 2010 Is Here – What Did India Search For? Google’s ‘Creative Sandbox’ Arrives In India WATBlog Picks: International Websites to Watch Out For in 2008 Youth behaviour on Orkut – Users deleting scraps Do we need law 2.0?
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