Tag Archives: Advertising

Digital ad spend in the UK reaches record highs, surpassing the £5 billion mark in 2012 alone!

Research from the Internet Advertising Bureau has revealed a growth in digital advertising in the UK, with mobile accounting for 10% of all digital revenue in 2012.

Digital ad revenue reached an annual high of £5.42 billion last year, a record 12.5% year on year high, mobile advertising was responsible for approximately £526 million, revealing a growth of 148%!

With an increase in Smartphone ownership expected to reach 75% by end of year 2013, it is no surprise that mobile advertising has grown by an astonishing 1,601% up to £13million, even without EE’s 4G prevalent network which will only be made readily available to the majority of operators this autumn.

Mobile Advertising 2013

source: http://images.ientrymail.com/

It is also expected that the majority of search clicks in 2013 will come from mobile devices, with the prediction that mobile advertising “will undoubtedly be a billion pound medium within a few years”. Mobile has reached a milestone as marketers are becoming more attuned to the ‘always connected’ nature of consumers, who expect to engage with content wherever they are. This has resulted in advertisers encouraging consumers in all industries, to invest in integrated campaigns across online and mobile. As Anna Bartz from PwC, said: “The advertising market is shifting toward storytelling and integrated campaigns which give greater prominence to video and display formats with a higher degree of interactivity with the target audience”.

With the likes of social media sites such as Facebook, and with them recently unveiling plans for a Smartphone which it claims will “make the social network the home of Android devices, as it looks to expand its mobile advertising offering”,  it is no wonder that social media has contributed to this astonishing high turnover in digital advertising. With mobile advertising increasing from £265 million to £328.4 million in 2012, meaning that in only 3 years social media revenue has quadrupled at 383%.

Last but not least, video ad revenue is responsible for 12% of all online and mobile display advertising with an overall £160 million revenue, which has helped contribute to such a high digital ad spend in 2012.

The top five display advertising sectors in 2012 are as follows; finance (15%), entertainment and media (13%), retail (12%) and technology (9%).

International Herald Tribune Rebrand

The New York Times Company has announced that it is to rebrand the International Herald Tribune (IHT), its 125-year-old newspaper based in Paris, in October this year. The new title will be branded the International New York Times and will be boosted by a large marketing campaign.

The rebrand will be accompanied with substantial improvements to both the print and online offering (especially in the case of the latter, which currently looks as if it belongs in the last decade). Aside from a more streamlined operation, the expected results will be to increase subscribers/online users thereby increasing circulation and impression delivery globally and, as a result, drive advertising revenues up across both platforms.

The change comes off the back extensive research with international audiences.  As Mark Thompson (President and Chief Executive of the New York Times Company) concluded, there is “significant potential to grow the number of New York Times subscribers outside the United States”. Moreover, further research showed that the NYT brand is far better known globally than the IHT. Consequently, it seemed logical to bring the two together and create a stronger and more cohesive product for both advertisers and consumers alike.

This bold move comes with sacrifices- the NY Times is looking to sell its stake in the Boston Globe and other New England media properties in order to fund this move (it will also help the business focus strictly on NY Times branded products).

Ditching the IHT name has been suspected by many in the industry for a number of years now (ever since The New York Times Company purchased the Washington Posts 50% stake of the IHT at the end of 2002). Further evidence was the integration of both IHT.com and NYTimes.com in 2009 and “The Global Edition of the New York Times” being included below IHT masthead in both print and online.

International Herald Tribune changes its name

Source: latimes.com

Whether the choice of name is a good move remains to be seen. There is no denying that IHT has always had a strong affiliation with New York. When founded in Paris in 1887, the paper was called the New York Herald. This changed to the New York Tribune in 1924. In fact, the IHT name only came into force in 1967. However, despite its New York ties, we wonder what the effect of having “New York” in the newspaper’s name- especially in non-US friendly territories.

Moreover, having the word “International” in the same title as “New York” does seem a little peculiar and could confuse potential readers as they might wonder if it just a slimmed down version of the NY Times sold abroad or is if it is an international business daily. We suspect that the new name will result in the title mainly appealing to US expats.

From a commercial point of view, the global offering will bring immediate benefits. Currently, planning campaigns in the NY Times and IHT is a laborious process as they both operate separate rate cards. It is a far less streamlined affair than the FT and Economist, for example. However, a new unified rate card and greater synergy across the global portfolio will make global planning much easier.

What will these changes mean for the main competitors (these being the FT, the WSJ and, in part, The Economist)?  We feel that it is only the WSJ that need perhaps worry as it is the only other title which has a big appeal with Americans (local and expats), has roots set in the US and, when looking at circulation/distribution has one that broadly resembles that of the NY Times/IHT.

The FT and The Economist both have much smaller dominance in the US and their US circulations are much smaller as a percentage of their total global run (roughly 30% for the former and 48% for the latter). This compares to unified NY Times which will see roughly 77% of its circulation in the US and the WSJ with a whopping 96% of its circulation in the US. As such, whilst the FT and Economist might see advertisers use the NY Times as a way to reach the US market, it is unlikely that they will be taken off global media plans as they still have a much higher ex-US circulation and also benefit from enormous respect and brand prestige on the international stage.

Sunday Times Style gets a make-over

10 March saw the re launch of Sunday Times Style Magazine, with the title being restored to its original roots; fashion and beauty. Non fashion and beauty editorial, including food, has now been moved to the Sunday Times Magazine, allowing Style to focus on its namesake. Strangely, Interiors has been retained.

Whilst the range of editorial content in the publication has decreased, the number of pages has increased, offering more beauty editorial and in turn advertising opportunities.

Style’s facelift will be supported by a year long brand campaign, designed to make this publication key within the fashion and beauty sector and set it aside from competitors.

Readers will have the opportunity to attend high profile branded events, such a Style Conversations, which has previously featured some of the world’s most famous and influential fashion designers including Valentino, Donatella Versace and John Galliano.

Repositioning this brand removes Style from the category in which it is currently bestowed, a Sunday Newspaper Supplement, in an attempt for it to be considered a prestigious and influential fashion and beauty publication. The publishers hope that this new focus will encourage advertisers to advertise in a relevant environment, whilst targeting the title’s high-end demographic. Hence Chanel taking the outside back cover in this weekend’s edition.

Head of Strategy, Times & Sunday Times at News International said: “This is one of the most important re launches for Style in its 10-year history as a standalone section. In recent years the magazine has become home to a range of content which, while much loved by readers, isn’t central to its mission. By refocusing the magazine on fashion and beauty we can ensure that we’re giving our core readers what they want whilst also offering advertisers a clearer opportunity.”

Sunday Times Style is revamped

Source: Style

Whilst Style’s re launch will be music to many Sunday Times fashion lovers’ ears, the question on our mind is – where is this publication now going to sit within the fashion and beauty advertising market? With firmly established competitors, is an increased fashion and beauty focus going to be enough to draw in additional advertisers? We have our doubts as to the volume of additional advertising.

Mail On Sunday’s YOU, an established fashion and beauty magazine supplement, boasts a readership that is 48% higher than Style. Their readership profile is also broader and younger than Style – and unless a brand is truly ‘top end’ the’ norm’ demographic of ABC1 18-45 for fashion and beauty advertisers will apply.

Being weekly, Style’s readership longevity is reduced compared to the established high circulation monthlies such as Glamour and Cosmopolitan and therefore not a threat to them.

They will undoubtedly be keen to continue to take and maybe increase their share of the GWP (gift with purchase) promotional advertising enjoyed by the weekly supplements and the paid for titles such as Grazia and Hello.

With the plethora of quality paid for fashion and beauty titles a ‘free’ supplement is less likely to command the gravitas of Vogue or Marie Claire. But should the editorial team be able to deliver exceptional ‘exclusives’ they may gain a higher profile in this crowded and competitive marketplace. Perhaps taking over from where ES Magazine sat in the days of its premiership in this market and command some additional lucrative fashion advertising. The quality of advertisers in this weekend’s issue was quite high though 3 ‘House’ ads were evident.

With print advertising revenues so hard to attract we see their logic of being more focussed in their delivery but doubt that they will immediately draw in large amounts of ‘new’ advertising.

Relaunch of Postar as Route heralds a revolution for outdoor media

On 26 February, Postar unveiled its new out-of-home audience research system and announced its re-launch as ‘Route’

The audience research body for outdoor advertising in Great Britain invested £19 million into investigating how the British public consumes outdoor media and is finally able to give the medium a people-centric view.

The research study, undertaken by Ipsos MediaCT and MGE Data, a GIS specialist based in Prague, used a fieldwork sample of 28,000 people to conduct the study, recording a total of 19 billion individual GPS records over the course of 9 days; the largest GPS travel survey to ever take place.

The video below shows how the new Route data was collected:

What this means for advertisers is that the door is now open to trading by audience in the future – The new research has been designed around hyper-local geography which makes it possible to plan by town, choose from 24 conurbations or the 14 BARB areas. In addition, it is now also possible to plan and trade by day-part.

One part of the original Postar does survive – the pioneering eye-tracking research that was developed by Birkbeck College, London. However, this has now been extended in order to examine in more detail how people see the world.

In particular, significant effort was made to understand the relative visibility of ads in specific environments. For example, what is the visibility of buses to people in cars compared to those walking on the pavement? Route also seeks to take into account the effects of illumination and motion (such a scrolling displays and digital formats) on the visual impact of these formats.

Route encompassed a range of outdoor environments when conducting the study, including airports, buses, the London underground and shopping centres, revealing that in an average day, a person will see approximately 27 roadside posters, 14 bus advertisements and 74 ads with each tube journey that they take.

It was also revealed that the average distance that a person will travel out of home per week is 241km at an average of 19.94 km/h. Men both travel farther and faster than women.

The research can be broken down into demographics, including age, class and lifestyle, giving a greater insight into the way in which people view and are affected by outdoor advertising

Glenn Wilson, managing director of Posterscope, has forecast that the new technology will allow advertisers to bring more innovative approaches to outdoor planning, as well as better accountability and more sophisticated reporting. It will also allow for greater integration with other data sources, both industry and proprietary, allowing more holistic evaluation of campaigns.

Road, bus and tube data is available immediately, with rail and retail coming soon and airports ready by the end of the year.

New Digital Showcase at Bluewater

An impressive digital showcase has recently launched at Bluewater shopping centre, bringing a new generation of digital advertising to the forefront of media.

Digital Advertising Bluewater

Source: thedrum.com

This new digital out of home platform features a 165 inch digital screen, capable of producing cinema quality ultra HD images. Further to this high tech screen, the new digital site offers a full screen surround wrap and the latest sound technology, in a bid to capture shoppers attention in every way.

Matt Gordon, the co-founder of Limited Space, who have signed a five year contract with Bluewater says that “the Bluewater Showcase screen is an innovative and cutting edge example of digital working alongside retail product allowing brands to further their communication with customers.”

If the sheer size of the screen was not enough, the new showcase site takes customer engagement to a new level as the site is fully interactive, offering customers the opportunity to use their smartphones to interact and respond to the creative. Luxury watch brand Citizen is the first to take advantage of Bluewater Showcase. Mark Robinson of Citizen comments “This unique new display and advertising platform provides Citizen with a true showcase to engage Bluewater shoppers… We were especially struck by the cinema screen quality and scale of the display Limited Space has created and its multipurpose nature. It’s the perfect window to display the Citizen brand in a top location for shopper footfall.”

This new showcase costs £10,500 (rate card) for two weeks, including production.

The Year Ahead

The New Year brought further predictions of gloom rather than boom, with most recent economic data telling a story of continued slow growth in 2013. The Financial Times recently reported that there are two main trends that have emerged in the shopping habits of the nation; the search for value, and the way that we shop, which is migrating to online. These trends are not dissimilar to forecasts for the media landscape in 2013, which it is predicted will also be technology driven and value seeking.

Digital Spending

Source: Four Media

There is no denying that digital has become an intrinsic part of our daily lives in the UK, influencing our routines, shopping habits and ever more prolifically, our media consumption. It is predicted that the number of UK households that own a tablet is likely to double to 10 million in the coming year, and with the advent of 4G mobile broadband, and the increasing integration of Internet-enabled TV, the pace at which our digital media consumption is evolving is impressive.

So what for media in 2013? Current advertising revenue forecasts range between 2.8% and 3.4% growth, and there is universal agreement that 2013 will see two major trends – digital media revenues will continue to outpace other channels (digital is the only media predicted to grow by double figures in 2013), and audiences will migrate to online platforms with the continued integration of mobile and internet.

This increasing transition to digital has seen a shift in how companies do business from a ‘this is how we do it’ mentality to ‘this is what we need to do’, with an emphasis on making things happen in the now. The transition from ‘what’ to ‘how’ can also be seen in the media landscape, with the benefits of a test-and-learn approach being seen across the board, with an increasing focus on digital in the media mix combined with careful understanding and management of risks. It is predicted that this year will be about starting small and learning quickly in order to capitalise on new opportunities in a rapidly evolving media environment.

Further, the point of transaction and engagement are becoming ever closer, with the year ahead forecast to be as much about data capture as engagement. The prevalence of measurable factual information will further aid in the development of targeting opportunities, meaning that communications can become more personalised than ever before.

The focus on measurability and accountability means that having the right capability in terms of analytics and insight will be essential for media agencies to give clients confidence that they will see returns on their media investment from the beginning.

Media agencies that combine a ‘be brave and learn quickly’ mentality with a thorough approach to measurement and analysis will have the opportunity to produce some impressive results in challenging times through innovative campaigns across a wide range of touch points.

2012 Ad spend falls again

Within the space of 24 hours what looked like a 4.1% overall global growth for 2013 across the market, became 2.5% after Zenith downgraded the performance of every medium, with the exception of Cinema this year.

This has meant this year’s UK growth has been reduced from 2.2% to 1.6%.

The UK saw an increase in press performance during the Olympics, but the months following saw a 10% drop, and it is now believed it will fall to 7.3% this year with only £2.33 billion being spent on newspaper ads.

The national newspaper advertising is set to fall by £127 million and the regional newspapers by £120 million, compared to what was originally forecast in December 2011.

Zenith believe that; “The print market in the UK remains extremely volatile… whilst many had hoped the relatively good performances of the summer months heralded some sort of recovery, this theory was quickly dispersed by the performance in September and October.”

In line with the press, magazine ad spend saw its year-on-year prediction from September fall from a 3.2% decrease to 6.3%.

Unexpectedly, digital has also seen its 2012 growth forecast downgraded, however, the change is very small in comparison, with 2012 decreasing from 11% to 10.5% and 2013, from 9.9% to 9.2%.

Figures are not all entirely negative; outdoor advertising is set to see a 6% growth compared to the 3.9% predicted in September.

As can be expected, in line with the changing ways in which we now consume media, the internet is set to grow by 10.5% this year, largely due to the increasing use of social media and video.

Whilst traditional press is seeing a reduction in spend, budgets are being redistributed across other media.

The fall in digital ad spend could be due to the fact it is a still a relatively new medium, we believe that as the use of the iPads and other tablets becomes increasingly more popular, there will be  growth in ad spend for digital media in 2013.

Further to this, with more people moving away from print media, and instead consuming it online, we agree with Zenith’s forecasting that; “internet advertising to overtake newspapers for the first time in 2013, and then exceed the combined total of newspaper and magazine advertising in 2015.”

UK Advertising Expenditure – Current Prices (£ million)

Year Total Newspapers Magazines TV Radio Cinema Outdoor Internet
2011 11,978 2,519 836 3,290 452 150 753 3,978
2012 12,172 2,335 784 3,258 455 147 798 4,396
2013 12,481 2,276 767 3,225 459 154 800 4,800
2014 12,879 2,259 762 3,257 464 156 806 5,174
2015 13,150 2,259 762 3,290 469 157 815 5,397

UK Advertising Expenditure – Year on Year change at current prices

Year Total Newspapers Magazines TV Radio Cinema Outdoor Internet
12 v 11 1.6 -7.3 -6.3 -1.0 0.7 -2.0 6.0 10.5
13 v 12 2.5 -2.5 -2.2 -1.0 0.9 4.8 0.3 9.2
14 v 13 3.2 -0.7 -0.7 -1.0 1.1 1.3 0.8 7.8
15 v 14 2.1 n/a n/a 1.0 1.1 0.6 1.1 4.3

Where ad investment should really go

New research due for release in early 2013 by the IPA (Institute for Practitioners in Advertising) will endeavour to shed light on the effectiveness of short and long term advertising.

In recent years the trend in advertising has been to focus on building loyal relationships with customers. However, the research, which has examined thousands of advertising campaigns over the past thirty years, has concluded that stirring consumer emotions as well as providing highly creative advertising will always bring in the highest profits.

Other key findings and recommendations include:

• Advertisers must ensure that their campaigns strike the balance between long-term investment in brand-building using mass media and short-term, direct methods that stimulate sales.

• Long-term (3+ years) investment in advertising delivers double the profit of a short-term approach (less than 1 year), but investing in both delivers the highest returns.

The report also advises that price promotions can maximise customer response rates and sales in the short-term but can also lead to increased price sensitivity and erode long-term profits.

Tight audience targeting, whilst desirable for reducing wastage may not contribute to the long term success of a campaign. The IPA suggests that a campaign which reaches a mass audience of existing and new customers is much more efficient.

Attempting to build deep and loyal relationships with existing customers is less effective than investing in advertising that reaches as wide an audience as possible. Ad campaigns which target new customers report 60% larger sales effects (effects include increased profits and sales or market share) in the first six months alone.

According to the IPA, none of the 1,000 ad campaigns included in the study achieved substantial long-term profit growth without investing on TV advertising. TV advertising remains the most effective way to build a brand and creates larger business effects than other forms of advertising.

The research suggests that using emotional advertising is almost twice as effective as rational messaging, and delivers twice the profit.

Highly creative advertising is the most effective of all, but even the best creative will fail if it does not have sufficient scale and is not evaluated over the longer term.

The IPA findings of 1,000 advertising case studies (over 700 brands in 83 categories) contradicts some fashionable thinking in modern advertising, where the emphasis on nurturing one-to-one connections with customers seems to be the norm.

Four concurs with this view in that while social media has become the ‘holy grail’ we still believe long term brand value building via strong quality media activity is vital to maintaining a Brand’s position in the marketplace.

Google Advertisers Move Closer to Clarity

Google is central to the majority of people’s internet usage, however, at present, it is also seems to be one of a collection of companies in the firing line. The reason for this is the sheer size of companies like Google and Apple, what they know about their users and how much of the market they control.

Regulatory bodies in both Europe (European Commission (EC) and the USA (Federal Trade Commission (FTC) have been investigating Google for 18 months for apparent monopolisation of the search and search-related advertising markets, along anti-trust laws.

Google hold 90% of the search market in Europe and around 65% in the USA and as such are the key player in the search market in both regions. The way it behaves, in such a consumer and advertising driven market is likely therefore, to raise comment and possible concern.

It now seems though fairly likely that regulatory intervention against the way that it displays search results for example, may be taken.

Both regulatory bodies have met to discuss their respective cases, which are based on complaints by other companies such as Microsoft, who have raised concerns that Google use their control of the search market to take advantage and give their own products preferential treatment and position. One example of which was noted as the positioning of Google shopping ahead of organic search options.

If they were to rule against Google, one option open to the EC and FTC is to impose a fine of a value up to 1% of the company’s value.

It is widely believed that if these bodies are to both rule against Google, who would be forced to bow to pressure for a rearrangement of the positioning of their search results. Google have previously suggested to the EC that it could label all of the options they offer, so as to highlight that Google had chosen them. This seems to have been rejected.

The EC and FTC do seem to closing in on rulings, something welcomed by Google who believe that the investigations have gone on for long enough.

Search advertisers and companies that rely on search engines as their main source of traffic, as yet, remain in anticipation of the rulings and how they are likely to affect their online marketing strategies. Would this have an effect on their PPC campaigns or SEO activities?

This question will only be answered once the regulators have reached a decision, but this now seems imminent.

Piccadilly Advertising Space

The Piccadilly Lite ad space has been made available to a single brand for a 12 week slot around the 2012 Olympic games. These are commonly only available for long-term advertisers. Over the last 100 years, only 50 brand advertisers have been featured in the prime London spot.

The high resolution Digital LED screen allows brands to run digital messages that can be changed quickly and regularly.

With an estimated reach of over 2,800,000 people every fortnight this is clearly a great marketing opportunity for a brand to advertise during the Olympics in a busy central location.

According to the latest Advertising Association figures, the Olympics is expected to boost UK ad spend by 5.4% next year.

So if you have a spare £108,000 available to spend on advertising (this rate is for a 30 second slot within a 3.5 minute loop for 12 weeks) then snap this up whilst you still can.