Causing all to utter a collective "no shit," an Edison Media Research study done for Clear Channel found 47 percent of people would listen to a lot more radio if there were fewer ads. Gee, that's stunning. But, we all know most people won't simply take Clear Channel's word that their "less is more" approach to radio ad sales is working. So, money has to be paid to a company to confirm the obvious. Perhaps more insightful and beneficial to radio is the study's finding that very few (73 percent "rarely" or "never") change the station when a commercial airs. The figure for TV is dramatically different with 19 percent claiming they "rarely" or "never" change station when a commercial airs.
Ad Age has released its annual Agency Report indicating U.S. agency revenue grew 8.6 percent to $17.59 billion. Fifty Seven percent of that figure was generated by the four agency holding companies; Omnicom, WPP, Interpublic and Publicis.
Dueling it out recently over the how many consumers delete cookies form their computers on a regular basis, Jupiter said lots do it. Nielsen said lots do it. Atlas, an ad serving company, said, wait, not so many do. Jupiter's Nate Elliott brings to our attention that, after seeing the Atlas report "the industry sighed a relief, went to AD:TECH and had a beer" only to realize Atlas had updated their figures to agree with Jupiter's early figures which claimed a fairly high degree of cookie deletion. One Atlas metric even claimed more cookie deletion than Jupiter did. Jupiter Lead Analyst Eric Peterson has the details here. Everyone should just forget about cookies and keep an eye on this company.
In a session entitled "Market Segment Insights" on Monday at AD:TECH in San Francisco, three industry experts shared insights specific to the demographic, psychographic and behavioral make up of four distinct generations: Gen Y, Gen X, Baby Boomers and Seniors. Leading off with Seniors was Nielsen//Netratings Senior Analyst Leslie Marable stressed the over 55 crowd should not be ignored by online marketers citing increased usage of broadband, a 25 percent increased likelihood over average household of computer purchase, 25 percent increased likelihood of music CD purchase and 15 percent increased likelihood of book purchase.
Covering Gen X and the Baby Boomer groups, Veritas Director of Research Scott Marden reminded the audience Baby Boomers are the country's biggest spenders and look for quality products that help define the generation's focus on itself. He cited the group's love of all forms of media from television to radio to billboards to the Internet and recommended marketers be sensitive to the generation's appreciation of value and sensitivity to price. Referring to Gen X, Marden told the audience this group wants value too but, at the same time, instant gratification because of the group's experience with the proliferation of choice made possible by new forms of media.
Painting a picture far less bleak than Bob Garfield did with his Chaos Manifesto, DoubleClick Director of Research Rick Bruner has published The Decade in Online Advertising, a look back at the history of online advertising as well as a look forward to what can be expected in the future. Granted, Garfield's piece focused on the entire field of advertising while Bruner's piece focuses on the online segment, there are similarities, namely, the increasing control consumers will have over the consumption of media. Along with the increase in consumer control, Bruner states online media's accountability will cause marketers to demand more accountability in traditional media and the recent rapid growth of online advertising will turn the medium from a buyer's market to a seller's market.
While Garfield has painted the future of advertising as some sort of doomsday, Bruner has produced a fact-filled, optimistic viewpoint of the future. Both, though, are well worth reading. Garfield's is here. Bruner's DoubleClick report is here (pdf).
Forrester Research and Headlight Vision, commissioned by Yahoo and Mediaedge:cia will, today, release a study that shows the increase in Internet usage is actually increasing, not decreasing the consumption of other media. Detailed findings will be released during a Yahoo forum at the Museum of Television and Radio today. Early indications lead to the belief it's multitasking, not an increase in total media consumption, that's saving old media. Unfortunately, multitasking goes against the idea of "undivided attention" and "captive audience" many advertisers crave.
The Atlas Institute, research arm to ad serving company Atlas, recently published a Digital Marketing Insights report entitled, "Is the Sky Falling on Cookies?" The study was done in response to many other recently published studies that claim the deletion of cookies, small pieces of
software identifying information that track user activity online, is rampant and a threat to online advertisers who need to know which ads to serve to people and what those people after clicking on an ad. The Atlas study, which did not just query people on their cookie deletion habits but matched survey response with actual user behavior gleaned from its 100 billion monthly served impressions, clicks and page views, found 56 percent of those who claimed to have deleted cookies at least monthly actually deleted them at intervals between 45 and 59 days.
Relating this behavior to ad response and conversion, the Atlas study cited past analysis has shown between 70 and 90 percent of conversions (click, visit, buy) occur within 24 hours of a cookie-placed click or impression making weekly cookie deletion almost a non-issue. Read the full report here.
At the Game Initiative's first annual Advertising in Games Forum, held April 14, 2005 in New York City, a number of key facts, figures and estimates were provided to the audience by leading industry experts at the Advertising In Games Forum. Highlights include:
- The Yankee Group forecasted advertising in games is expected to rise to $800 million in 2009 from nearly $120 million in 2004.
- $266 Million, or more than one-third of advertising in games in 2009, will come from "advergaming," when advertisers create a game around a product rather than place their brands within a well-known title, according to Yankee Group senior analyst Mike Goodman at the Advertising In Games Forum.
- Mitch Davis, chief executive of video game ad network Massive Inc., told the audience video game advertising would top $1 billion in the United States by 2010, and approach $2.5 billion worldwide.
- There are 100 million game capable cell phones are currently in the marketplace. 65% of the population owns a cell phone. And the turn over or replacement rate of cell phones is every 16 months, reported Anita Frazier, Entertainment Industry Analyst, NPD Group, at the Advertising In Games Forum. Every cell phone being sold on the market today is game capable. So within 16 months all cell phones in the marketplace should be game capable.
- The top selling 2004 game titles according to the NPD Group: 1 Grand Theft Auto San Andreas, 5.5 million sold since launch 2. Halo 2 on X box, 4.5 million units sold since launch 3. Madden NFL 2004 on PS 2, 3.5 million units sold since launch 4. ESPN NFL 2K5, 1.6 million units sold since launch 5. Need for Speed Underground 2, 1.7 million units since launch
- Top selling PC title of 2004: Sims 2 with 750,000 units sold., reported NPD Group at the Advertising In Games Forum
- Best selling game title of all time: Grand Theft Auto Vice City with 6.5 million units, followed very closely by Super Mario 64 on the N64 which is about 6.0 milllion units, according to Anita Frazier, Entertainment Industry Analyst, NPD Group, at the Advertising In Games Forum.
Ad Age reports chilling findings from consultancy firm Accenture which claims on demand and ad skipping will cost the television industry $27 billion over the next five years. Additionally, the company reports 70 percent of DVR users already skip ads and that DVR penetration will hit 40 percent by 2009. Combine this with Bob Garfield's recent manifesto on looming chaos in the advertising industry and the picture is far from rosy.
PVRblog via engadget reports TiVo is testing a program they eluded to earlier where banner-like ads appear on the screen as users fast forward through ads. Making matter worse, the banner ads are so big, the user can't really see when the ads have stopped and the programming has started again. Chock up another for corporate buffoonery here. engadget, being the geek blog it is, offers readers a link to the TiVo tweak that reprograms the buttons on the TiVo remote so the units jumps forward 30 seconds rather than fast forwarding, thereby avoiding both the ads and the new banner unit.