Spending on online advertising surpasses TV, report says Los Angeles Times Everyone knows that online advertising keeps growing and growing. But according to a report being released today, it's growing so fast that in 2008 it is projected to surpass ad spending on TV, radio and movies combined for the first time ever. To be sure, Outsell Inc., based in Burlingame, Calif., tallies the numbers a little differently. It counts the money companies spend on their own websites as part of their advertising budgets, because websites are ostensibly used for marketing. Its data indicates that companies are expected to spend $105.3 billion online in 2008, which beats the $98.5 billion theyíre projected to spend on TV, radio and movies. But that isnít quite as much as the $147 billion theyíre likely to spend on print media, up 12% from the previous year. Much of the report is pretty wonky, unless youíre interested in tracking cost per lead and conversion rates, whatever those are. But the overall picture is interesting. For instance: online advertising is expected to grow 12.3% in 2008, but much of that money will be spent on companiesí own websites, rather than on marketing agencies or search or display ads. Thatís not good news for advertising agencies, said Chuck Richard, Outsellís lead analyst. ìFor more than decades, media companies have been the channels for advertisers to reach audiences,î he said. ìSuddenly companies donít rely completely on them.î The 1,088 US-based companies surveyed will spend $61.5 billion, or 61.8% of their online advertising and marketing budgets, on their own sites, siphoning away money from other options, he said. The report does predict that advertisers will still spend the most money on print media in 2008 ñ but itís not a shining ray of hope for the newspaper industry. Companies will spend 35.5 percent of their budgets on print media in 2008, and will spend nearly a third of that on newspapers. Thatís down 4 percent from the previous year. --Alana Semuels Semuels, a Times staff writer, covers marketing and the L.A. tech scene. Consumers to Watch 25% More Video a Day in Five Years Viewing on Computers, Mobile Phones Will Drive Increase Advertising Age NEW YORK (AdAge.com) -- Consumption of video content is expected to rise 25% to five hours per day by 2013, compared with the four hours now watched in 2008, according to Forrester Research. The firm suggests the increase will be driven by consumers watching programming of all grades via computers, mobile phones, portable media players and even digital photo frames. "There will be more advertising inventory coming from this extra hour of video," said James McQuivey, the Forrester analyst who authored the study containing the prediction about the increase of video consumption. "People will still be watching, but it probably won't have the same form that we're used to." Content's ubiquity TV as a medium has already begun to overspill its screen, as it were. Video displays are available in the living room, of course, but also at gas stations and in taxicabs, to name just a few places. Content is being produced by everyone, from professional Hollywood studios to amateurs transferring shots from their mobile phones. Forrester calls the phenomenon "OmniVideo," and expects it to continue to be driven by high-speed internet connections, consumers' ability to store megafiles of data (including video) and cheap display screens. Forrester forecasts that the percent of video viewed on demand will increase to 45% in 2013 from 20% in 2008. The percent of video delivered via the internet climbs to 35% in 2013 from 10% in 2008. The percent of video consumed on mobile or portable devices increase to 15% in 2013 compared with 8% in 2008. The amount of "personal" video -- i.e., created by oneself or one's peers -- is predicted to increase to 10% in 2013 from 2% in 2008. Predictions by firms including Forrester, PQ Media, eMarketer and the like are best taken with a grain of salt. The numbers can often be wildly ahead of consumers' ability to achieve them. More often than not, however, the predictions are directionally in tune with mass behavior. Mr. McQuivey does not believe TV networks would be hurt by an increase in video consumption, although the Forrester report does note that, already, 39% of viewers watched some type of video on either a desktop or laptop computer, as per a survey conducted in the fourth quarter of 2007. "People love their content and want to watch it no matter where they can get it. They'll even watch it on a small device, if that's the option they have," said Mr. McQuivey. Consumers and advertisers still want high-end video content, he said, which YouTube does not specialize in. "YouTube video, as fun as it is, is forever a niche and it fills certain gaps in people's lives, but it doesn't take over. It doesn't become dominant." TV networks are likely to fare better than cable providers, who will see audiences migrate to other means of video distribution. IAB: Web Ad Spend Tops Cable, Radio Internet ad spending in 2007 was $21 billion, up 26 percent from the prior year ADWEEK May 15, 2008 Online ad spending exceeds outdoor, magazines, radio and cable TV. NEW YORK Spending on Internet advertising has surpassed the outlay devoted to cable television, according to figures compiled by the Interactive Advertising Bureau. The IAB, working with PricewaterhouseCoopers, reported that Internet ad spending in 2007 was $21.2 billion, up 26 percent from the prior year. At that level, it exceeds spending on outdoor, magazines, radio and now cable TV, which collected about $20.9 billion in 2007. The IAB has tracked four straight years of strong revenue growth for the industry following the dot-com downturn and slumps at AOL. Spending growth, however, has begun to slow. In 2006, the IAB tracked a 35 percent growth in revenue compared to this year's 26 percent. Search advertising continued to serve as the dominant vehicle for advertisers, who devoted 41 percent of their budgets there in 2007, up from 40 percent in 2006. Display ads showed a larger increase, going from 32 percent of spending to 34 percent. Despite popular discussion of the potential of the long tail, the IAB charts an industry with spending concentrated among the top players. The top 50 sites accounted for 89 percent of spending, the top 20 represented 80 percent and the top 10 accounted for 69 percent. Those figures are nearly unchanged from 2006. The IAB tracked a slight increase in performance advertising. The percentage of deals classified as either pure performance or hybrid went from 52 percent to 55 percent. Strictly CPM buys fell from 48 percent of spending to 45 percent. Cisco Projects Growth To Swell for Online Video Wall Street Journal Cisco Systems Inc. is projecting a sixfold jump in Internet traffic between 2007 and 2012, as online video becomes the biggest driver of global data communications. The networking-equipment maker, as part of a study called the Cisco Visual Networking Index, predicts that Internet video -- which accounted for 5% of data traffic in 2005 -- will represent 30% of total data transfers by the end of this year. That will swell to 50% by 2012, Cisco estimates. Marketing: Website Video Advertisements Influence Consumer Purchase Process The addition of a "Video Spokesperson" to websites is driving sales and operations for many businesses Local businesses are taking advantage of new website marketing technology to influence consumer purchasing process and, ultimately, impact their firms. Steinhafels, Hupy & Abraham, S.C., and the Metropolitan Builders Association, best known for the Home Builders Expo, and The Parade of Homes have all found Walkout Video™ to be a powerful addition to their websites. Walkout Video™ through the use of a borderless media player, allows business, or organizations to use a "video spokesperson" to deliver a message on any page of their website. The subject is videotaped against a green-screen background, similar to a weatherman. In the post-production process, the background is edited out, giving the website the appearance of a person walking out on to the page. Samples of local businesses, such as Medical Associates’ Crossings Medical & Well-being Center, and the various applications they have found for the product can be found on HYPERLINK "http://www.walkoutvideo.com" www.walkoutvideo.com. Attorney Jason Abraham of Hupy and Abraham, S.C. states: "Walkout Video has proven to be a fantastic way to establish rapport with potential clients, prior to meeting them". Abraham has had a Walkout Video™ of himself, introducing website visitors to his firm since 2006. Dirk Stallmann, Media Director for Steinhafels, reports that "Walkout Video™ will be a much more dynamic way to appeal to job candidates". Steinhafels will be utilizing the videos on the "Careers" pages of the Steinhafels website. The family-owned, Wisconsin furniture retailer will also be utilizing Walkout Video™ as a promotional tool for other areas of their website. The Metropolitan Builders Association, an organization of business in the homebuilding and associated industries will also use the innovative technology to tie into this year’s PR campaign directed to prospective consumer homebuilders, which will have a theme of "The Best Move We Ever Made". According to Chellee Siewert, CEO and Matt Moroney, Executive Director of the MBA, "we are excited to have found a tool to add another dimension to our website, in assisting with our PR campaign efforts". The MBA is also putting Walkout Video™ in their portfolio of marketing tools the organization offers to their members. Walkout Video™ was developed by Sussex, WI-based TAP Media, Inc., a local full-service advertising agency. Mike Schuch, Partner of the firm, states: "we were looking for a way to help our clients bring their websites to life, and give them an affordable avenue to utilize the power and influence of the Internet. What we’ve really done is combine the visual impact of television advertising with the intimacy of the Internet. Regardless of your product or service, there's nothing quite like the power of web site video to capture the interest and imagination of your visitors and help get your message across", states Schuch. When a powerhouse like Yahoo! issues a statement as strong as: "U.S. online video advertising will grow to more than $4 billion in 2011"**, it’s easy to see why TAP Media and its aforementioned clients are optimistic about the impact Walkout Video™ will have in businesses reaching out to consumers. TAP Media is a full-service ad agency, located in Sussex, WI, and has been helping business promote themselves, and assisting in their branding efforts for over 10 years. The company, founded by Mike Schuch, Sr., a media veteran, formerly running TV stations like Milwaukee-based WVTV Channel 18/WCGV 24 earlier in his career, and Mike Schuch, Jr., a seasoned media professional, started TAP by creating revenue programs for broadcast media firms nationally. TAP has changed with the times and now concentrates their efforts on online marketing, offering services, such as Walkout Video™ , website development, Internet advertising, and search-engine marketing. The firm does still have agency clients, who have more traditional needs, such as media buying and placement, and is always happy to accomodate businesses to that end. **source: http://www.redherring.com/Home/23743 (Red Herring is a Technology News online publication)