Most U.S. advertisers now spending on new media: survey
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Nearly 90 percent of all U.S.  companies polled in a new study will use part of their  marketing budgets to advertise in new media like video games or  virtual communities.
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The commercial web is 10 years old, yet the online publishing industry still hasn't figured out how to measure accurately the number of people visiting each site. What's at stake? More than $8 billion a year. Commentary by Adam L. Penenberg.
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With 75 percent of Americans online today, the Internet has come of age as a reach medium, and a new report suggests that advertisers need to understand how a Web site's audience builds over time and adjust their buys accordingly.
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Google lost ground in the U.S. Internet advertising market for the first time in two years during 2007 due to&#160;slower growth in the fourth quarter, market researcher IDC said Monday.The Internet search giant saw advertising sales growth slow to 40 percent year-on-year in the fourth quarter, down from 50 percent year-on-year in the third quarter, IDC said. That blip cut Google&#39;s advertising market share in the U.S. to 23.7 percent in the fourth quarter, down 0.5 percentage points from the third quarter.The decline comes despite continued strong growth in Internet advertising in the U.S., according to IDC.U.S. Internet advertising few 27 percent year-over-year in 2007 to $25.5 billion, while total U.S. Internet ad spending in the fourth quarter alone rose 28 percent compared to the same time in 2006, IDC said. Companies continue to shift ad spending to online media from traditional media, according to the market research company.Google&#39;s fourth quarter decline could spell opportunity for its rivals.A&#160;merger between Microsoft&#39;s Internet businesses and Yahoo&#160;would give the combined company a market share of 17 percent in the U.S. Internet advertising market based on fourth quarter data, IDC said in a statement. While the figure would leave Microsoft-Yahoo behind, &quot;it would give them a much better fighting chance than if they went it alone,&quot; IDC said.Google could not immediately be reached for comment on the IDC report.&#160;
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NEW YORK - US internet ad revenue jumped to a record US$2.37 billion ($3.5 billion) in the second quarter, surpassing the highest levels of the dotcom era.
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Online consumers in the United States  spent $8.8 billion, excluding travel purchases, in November, a  19 percent jump over the $7.4 billion spent online a year  earlier, a report released on Monday said.
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Now that more consumers are viewing video online -- as opposed to watching traditional TV -- why isn't advertising catching up faster? Experts believe there are still some creative strategies yet to be discovered.
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Online consumers in the United States spent $8.8 billion, excluding travel purchases, in November, a 19 percent jump over the $7.4 billion spent online a year earlier, a report released on Monday said.
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U.S. Internet advertising surged 38  percent to a record &#36;3.9 billion in the first quarter as  marketers moved additional dollars to the Web, according to  data released on Tuesday.
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Nearly one-fourth of companies surveyed by ChangeWave Research are now using Web 2.0-social networking software in some form, and another 8 percent intend to do so within the next year.The study is the organization&#39;s first stab at tracking Web 2.0 in the enterprise, said Joshua Levine, editor of ChangeWave Investing, an advisory service from the Rockville, Maryland, firm.&quot;I think Web 2.0 has been simmering a lot for the last couple of years under the radar, at least in enterprises; 2008 looked as we were coming toward it that this stuff would be exploding,&quot; Levine said.Overall, 39 percent of respondents said their firms are very or somewhat willing to use social software. In addition, among respondents whose organizations are already using such software, 35 percent said spending on it will rise in the next 90 days and just two percent said it will fall.Twenty-six percent of companies currently using social software said they plan to invest most heavily in wikis, followed by blogs (15 percent), social networks (13 percent), mashups (5 percent), RSS feeds (5 percent) and collaborative tagging (3 percent).However, the trends were somewhat different among future Web 2.0 users. They said their companies intended to spend the most money on social networks and blogs, which scored 22 percent and 21 percent, respectively.While 79 percent of current Web 2.0 software users said it is being used to improve internal communication and collaboration, only 48 percent of future users said the same. Future users were more focused on external goals, such as better customer service, greater brand awareness and increased sales.&quot;That&#39;s something we really want to drill into next time, why that is,&quot; Levine said. The company plans to repeat the survey, possibly by as soon as midyear.ChangeWave&#39;s report also tracked which vendors are benefiting from the Web 2.0 trend. Microsoft ranked highest in each of the six software categories, followed by IBM in a number of categories.However, open-source and in-house-developed software both showed strength. Some 31 percent of respondents whose companies are using or will begin using wikis within the next year are doing so with open-source technology, and 28 percent of those using mashups developed them in-house, according to the study.ChangeWave surveyed 2,081 people in September.
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With Web ad spending set to grow by as much as 20 percent in 2007, after expanding 30 percent this year, according to eMarketer, digital shops are finding it hard to find new employees with the necessary skill set to serve clients who are shifting budgets online. For traditional agencies adapting to the digital world, it can be a downright challenge.
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By JAKE COYLE  NEW YORK - Ever conscious of a good trend, TV networks and advertisers are increasingly adopting the YouTube model of viewer-created content.
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Four major U.S. newspaper chains launched an online advertising network on Friday that will let advertisers book national campaigns through a single point of contact, reaching 50 million people a month across the U.S.Investors include the Tribune, Gannett, Hearst, and New York Times companies, which publish flagship newspapers such as the Chicago Tribune, USA Today, the San Francisco Chronicle, and the New York Times, respectively.The network, QuadrantOne, will let an advertiser place ads on hundreds of Web sites focused on 27 major markets, targeting users by what they are viewing, their online behavior and demographic information.QuadrantOne is most notable for the online players that aren&#39;t participants, such as Google, Yahoo, or Microsoft. This latest move by the newspaper companies may be designed to assert greater control over their print and Web properties.Yahoo reached a landmark revenue-sharing deal&#160;in November 2006 with seven U.S. publishers. Yahoo provides search services, places job ads on its own HotJobs site and sells Web advertising.&#160;The deal was expanded in April 2007, with some 264 newspapers distributing their content on Yahoo&#39;s portal.One of the QuadrantOne&#39;s investors, the Hearst company, is participating in the Yahoo deal.Google&#39;s PrintAds program lets its customers who are already buying contextual Web-based ads to also place ads in 600 daily and weekly U.S. newspapers. Google also offers easy tools for customers to design their own ad that can be uploaded to particular newspaper.The Chicago Tribune, the New York Times and the San Francisco Chronicle participate in PrintAds.If newspapers develop better ways to sell their own online ads, they may not have to share revenue with their Web counterparts such as Yahoo and Google.Online advertising accounted for about $16.9 billion in revenue in 2006 and is expected to rise to $50.3 billion by 2011, according to a December 2007 report from the Yankee Group.The U.S. newspaper industry is in dire straits, in part because of a bumpy U.S. economy, declining print readers and falling print advertising revenue.Critics argue that newspaper companies waited far too long to revamp their businesses with the surge in online publishing and advertising over the last 15 years.Companies such as Google, which has made a fortune in Web-based advertising, have reaped some gains at the expense of newspapers, as advertisers look for cheaper and more targeted ways to reach buyers.Classified advertising, once a bread-and-butter source of revenue for newspaper, has also declined over the years due to advertising boards such as Craig&#39;s List.&#160;
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Pro and amateur videos, social networking and even streaming TV shows are luring audiences to the Web, study shows
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Frequent readers of newspaper Web  sites are more likely to make online purchases than other  Internet users, according to a study released on Friday by the  Newspaper Association of America.
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Big media brands latch onto mobile advertising while cell phone operators are more cautious. Is tension between the two inevitable?
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(InfoWorld) - Spending on mobile search and display advertising will skyrocket in the coming years in the U.S., finally making cell phones a viable vehicle for this type of online marketing, according to research firm The Kelsey Group. Spending is expected to total $33.2 million this year and grow at a compound annual rate of 112 percent through 2012, when it will hit $1.4 billion, Kelsey Group analyst Matt Booth said. This means that major players in online advertising,Â such asÂ Google, Microsoft, and Yahoo, as well as the major mobile carriers, will battle it out in a market that is uncharted territory. "Between now and 2012, the opportunity [in this market] is wide open," Booth said. As the market morphs from tiny into sizable, Internet companies and carriers are learning as they go, figuring out how to compete and partner with each other, win over advertisers, and better serve mobile subscribers, he said. The boost in spending follows technology advances, such as the increasing availability of mobile broadband services, the expansion of GPS capabilities, and improvements in device usability at the hardware and software levels, he said. For Google, the broadening of the mobile channel for search advertising comes at a good time because it currently has ad inventory backed up awaiting increased traffic, Booth said. It's no secret that mobile is the next big frontier for Internet services and advertising, although the market's explosion has been prematurely predicted in the past. Kelsey Group expects mobile Internet users to grow at a 20 percent compound annual clip in the U.S. through 2012, when there will be almost 92 million people going online via their cell phones. Previous unfulfilled expectations haven't discouraged Google, Yahoo, Microsoft and other big Internet companies from adapting in recent years their PC-based online services like e-mail, instant messaging, photo managers, and search engines for mobile devices. Yahoo, for example, has a suite of mobile services and applications called Yahoo Go for Mobile 2.0, while Google offers mobile versions of several services, including Gmail, Maps, YouTube, Picasa, Blogger, and search. Meanwhile, Microsoft's mobile offerings include Windows Live Hotmail, search, Spaces, and Messenger. Beyond adapting services to mobile devices,Â Google has also expressed interest in bidding in an upcoming U.S. Federal Communications Commission auction of 700MHz wireless spectrum set for January. There have also been rampant rumors thatÂ Google is developing a cell phone, but the company hasn't officially acknowledged those plans.