Ad-related companies are convening in New York for Advertising Week, and the media buying/research group ZenithOptimedia has made some forecasts regarding where the ad dollars are expected to go.
Overall, ad spending is expected to fall; Zenith cut its forecast from 4.3 percent to 3.8 percent in light of financial problems in Europe.
Even as new media grows, TV remains “dominant and unmoved,” AllThingsD writes. “Digital’s growth, to date, remains fueled in large part by the decline of print,” the article adds.
An interesting aspect of Zenith’s report is how digital ad spending is divided up. Where before Internet advertising was essentially synonymous with paying Google for search advertising, that has changed with the rise of display ads.
“Globally, display ads will be growing at a 20 percent clip the next couple years, Zenith says, while paid search will move at 14 percent,” the article explains. “Google is a big player in display advertising, too — it has been spending heavily on acquisitions there for years — but it doesn’t have anything like the lead it does in search.”
“That’s a big growth story for Facebook and a potential lifeline for Yahoo and AOL,” AllThingsD continues. “And if somebody else wants to build a business based on selling ads — not just eyeball acquisition, but the actual work of turning those eyeballs into marketing opportunities — that’s a real opportunity for them, too.”
Nielsen announced it is launching a new rating service that will enable advertisers to gauge the popularity of their campaigns across a variety of viewing platforms.
The long-awaited Nielsen Cross-Platform Campaign Ratings will combine data from online and television metrics. The project was developed in partnership with ESPN, Facebook, GroupM, Hulu and Unilever.
“According to the latest Nielsen Cross-Platform Report, in addition to watching 34-plus hours of TV per week, the average American spends nearly five hours online on the computer,” reports Broadcasting & Cable. “Nielsen also said more than half of Americans now watch video online, with online viewing increasing average weekly video consumption to somewhere around 35 hours.”
“Since traditional TV and the Web typically use different metrics, it has been hard to calculate a campaign’s total reach and frequency across platforms,” notes Advertising Age in a related report. “This effort builds upon Nielsen’s Online Campaign Ratings, which was rolled out last year to provide demographic ratings of online-ad campaigns with metrics comparable to those used for TV advertising.”
“Creating a way to reach, measure and monetize inventory across screens and platforms advances the industry toward the high caliber, seamless standard that can provide new opportunities for players across the industry,” says Steve Hasker, president, global media products and advertiser solutions at Nielsen.
However, some argue that the new approach is oversimplifying matters since consumers engage differently with TV than they do with their digital devices.
Microsoft plans to release its Windows 8 operating system by the end of October, but the system may not be fully ready by then, according to Intel CEO Paul Otellini.
Bloomberg reports that Otellini shared his thoughts with employees at a company event in Taiwan, suggesting that although the software will need post-release improvements, the release is the right move since it will allow Microsoft to establish a market before the holiday season.
Microsoft hopes the new operating system will allow it to carve out a segment of the crowded tablet space. Apple and Amazon dominate the market, and Google recently experienced some success with its Nexus 7 tablet.
Microsoft is expected to roll out its own tablet — the Surface — by the end of October.
“With over 16 million active preview participants, Windows 8 is the most tested, reviewed and ready operating system in Microsoft’s history. We’re looking forward to making Windows 8 available to the world on October 26th,” Microsoft said in a statement to CNBC.
A survey of more than 50,000 early Windows 8 users found that 53 percent prefer the current Windows 7 operating system.
Conducted by the support site Forumswindows8.com, the survey found that only 25 percent of participants said that Windows 8 was their preferred version of the operating system.
The strongest selling feature for most was the fast boot and shut down. The easy installation was the next popular feature followed by Internet Explorer 10. Only 22 percent of respondents claimed the Metro UI as their favorite feature.
“Microsoft claims that Windows 8 is the first version of Windows to be designed for both tablets and desktops, with users able to switch between the new user interface and the more familiar desktop mode. This was viewed to be a weakness by 18 percent of respondents,” reports TechWeekEurope.
“However the biggest concern was price, with 35 percent believing that this could be improved. It is possible to upgrade to Windows 8 for just $39.99, but without promotional prices, the cost is around $199.99. Just over a quarter were worried about system requirements while 25 percent feared incompatibility,” the article notes.
Despite the bad news, the Windows 8-based Microsoft Surface was the tablet of choice for 35 percent of participants, beating out Android tablets and Apple’s iPad.
Speaking at a Royal Television Society conference in London called “When Worlds Collide: Beyond the Digital Looking Glass,” Anne Sweeney explained that Disney sees the greatest growth opportunity for video consumption in mobile devices.
The co-chair of Disney Media Networks and president of the Disney/ABC Television Group noted that iPad users currently watch 60 percent more video than PC users, while iPhone users watch almost 40 percent more.
“Sweeney said apps are simple and therefore the preferred way for people to watch video on new devices. She said 80 percent of video is viewed that way,” details The Hollywood Reporter. “She also said the ABC player app for Apple devices has been downloaded 6.5 million times and drawn more than 135 million video views.”
Sweeney described ABC as a content engine for Disney, one that serves “as a navigation device and as a brand.”
She described how YouTube is becoming a useful tool, citing how Jimmy Kimmel has used it to help build an audience. She also explained how the stake in Hulu was meant to draw “a broader, more diverse audience” for ABC, which was skewing female at the time.
“The executive said a scene from the popular Pooh stories illustrates Disney’s approach to the digital age,” explains THR. “Pooh says the first thing he thinks of in the morning is ‘what’s for breakfast.’ In comparison, his friend Piglet says: ‘I wonder what exciting is going to happen today.’ Disney follows the Piglet approach, Sweeney said.”
Dish Network Corp. says it will launch a nationwide broadband service this week under the brand dishNET.
The satellite TV company “is expected to disclose plans to sell broadband, at a speed of between five and 10 megabits per second, for between $39.99 and $69.99 a month for customers who also take Dish’s TV service,” explains the Wall Street Journal.
Those who aren’t already Dish customers will have to pay $10 more per month, similar to the approach used by cable operators.
“Dish’s satellite rival, DirecTV, says it plans to roll out a nationwide broadband offering by the first quarter of next year, in partnership with a number of firms including ViaSat and using Echostar’s satellite,” writes WSJ.
The new dishNET won’t be able to match the high speeds of rivals, but will aim for rural customers with little or no Internet access.
“Some 19 million Americans — 14.5 million in rural areas — remain without access to fixed broadband, according to a report released by the Federal Communications Commission in August,” notes the article.
Toshiba announced it will start selling its second generation of 4K TV sets next spring.
The TVs — which at 3,840 by 2,160 pixels, have four times the resolution of HD — will include an 84-inch model and two in the 50- to 60-inch range, according to Toshiba executive Masahiko Fukakushi.
Toshiba’s first generation 55-inch 4K TV is currently available in Japan for 750,000 yen ($9,650). Sony recently announced it will also offer its 84-inch 4K model in November for 1.68 million yen.
One potential obstacle involves the lack of 4K content. While the movie industry has started a shift to 4K, there’s no delivery mechanism in place for 4K televisions.
“TV broadcasters have only recently spent billions of dollars upgrading to high definition and a further upgrade to 4K would mean most of their new equipment will have to be scrapped so that’s unlikely,” reports CIO. “The Blu-ray Disc format hasn’t been extended to 4K either.”
In the meantime, Toshiba has been working on custom chips for up-conversion that may prove a short term solution. According to the post: “The quality isn’t the same as if the original 4K content was viewed, but it’s better than HD, said Toshiba.”
For consumers looking to upgrade their HDTV to a Smart TV without purchasing a new set, the recently announced SmartStick by FAVI is one option.
“The SmartStick looks just like your average thumb drive, but it actually plugs into your HDMI input,” reports Digital Trends. “Once there it edifies your TV and allows you to utilize the newest Android OS to download apps or browse the Web.”
SmartStick does not include a keypad remote, but FAVI is marketing a mini wireless keyboard with touchpad as an add-on.
“With the SmartStick, the HDMI connector is built right on the stick which plugs directly into your HDTV with no cables or confusing adapters,” explains the FAVI site. “The DC power is supplied over a Mini-USB port, and the included Mini-USB to USB connection is just the right length, to reach the USB port already on your HDTV.”
The new device offers access to services such as Netflix, Hulu, YouTube, Flixster, Spotify, Pandora, Facebook and more. It also includes a Web Browser and 4GB flash memory.
The 4GB Wi-Fi version of the SmartStick is available for pre-order for $49 ($79 for 8GB) and is expected to ship by the end of October. The wireless keyboard is an additional $39.
Kevin Sintumuang writes about the benefits of viewing video on a tablet and introduces add-ons that improve the experience.
“I’m not claiming an iPad beats the big screen,” he writes in the Wall Street Journal, “but I will say this: Watching shows and movies on a tablet feels closer to what television viewing should be like in the 21st century than what 21st-century TVs actually deliver.”
Smart TVs that offer access to streaming services often feel sluggish, he notes. “Devices that help bridge the gap between Internet-based content and your living room’s television, like Apple TV and the Xbox 360, are pretty excellent, but once you’ve become accustomed to the speed and intimacy of using something like an iPad to watch your shows and films, it’s hard to deal with tech that’s not as responsive.”
Sintumuang suggests that portability and functionality puts the tablet ahead of the television — while apps from networks and providers offer all the content a viewer needs. He also lists the gear and apps required for the best experience.
Essential apps: Netflix, Hulu Plus, Amazon Instant Video, Fanhattan, HBO GO. For live TV, he recommends apps from Dish, DirecTV, ESPN and Disney. Attaching a Slingbox to your cable box is another option with the $30 SlingPlayer app.
Essential gear for upgrading the A/V: Optomo ML500 projector ($599), Logitech UE Boombox rechargeable speaker ($100-250), Klipsch Image ONE Bluetooth headphones ($250).
California Governor Jerry Brown announced on Facebook his signing of two privacy laws protecting social media accounts.
“Today I am signing Assembly Bill 1844 and Senate Bill 1349, which prohibit universities and employers from demanding your email and social media passwords,” he wrote in the September 27 Facebook post. “These laws protect Californians from unwarranted invasions of their social media accounts.”
“AB 1844 was designed to prohibit employers from requiring an employee or job applicant to provide their username and password for social media accounts,” CNET reports. “Assemblymember Nora Campos, who authored the bill, called AB 1844 a ‘preemptive measure’ that will offer guidelines to the accessibility of private information behind what she calls the ‘social media wall.'”
There are more than 100 cases involving employer workplace policies around social media currently in front of the National Labor Relations Board. There has also been an increase in reports of employers trying to gain inappropriate access to Facebook accounts.
CNET cites the Michigan teacher’s aide that drew attention after being suspended for refusing to provide the school access to her Facebook account.
“SB 1349 is a companion bill to AB 1844,” the article explains, “and focuses on prohibiting colleges and universities from demanding social media usernames and passwords from students and prospective students.”
Social gifting is growing up. No longer just about virtual goods, digital gift-giving has evolved to allow friends to easily send physical items while also letting brands “become a part of the conversation between friends,” writes AllFacebook.
Following Facebook’s acquisition of gift card app Karma, the social network has launched Gifts, a native program to compete with Wrapp, Gifties and other social gifting services. It enables Facebook users to send physical gifts such as Gund teddy bears, Starbucks gift cards and Star Wars flash drives.
“The action appears next to Post and Photo options, above the prompt to write on a person’s timeline. The friend then fills in their address to receive the real-life gift (unlike SuperPoke, these presents are real),” the post explains. “Facebook also prompts users to give gifts when they click on a friend’s birthday announcement in the top-right corner of the news feed.”
In addition to reducing the friction of gift giving, social gifting aims to provide opportunities for advertisers.
According to Wrapp co-founder and COO Carl Fritjofsson, a gift card or personal message that comes from a personal contact holds more weight than a brand simply emailing a discount offer.
“For consumers, it’s all about casual gifting, as well as significant gifting. From a retailer’s prospective, it’s generating store traffic through very genuine and friend-to-friend contacts,” Fritjofsson says. “Facebook is essential to the way that we built our platform… We think that social gifting is definitely going digital, and Facebook is the natural way to facilitate that, because of the friendship graph.”
While banks, merchants and technology companies have bet billions of dollars on mobile payment technology, it’s not likely they’ll see any return for years to come.
“Mobile payments and purchasing at the physical point of sale have experienced little adoption in the U.S. marketplace despite abounding innovation in mobile and payments technologies,” according to a report from Javelin Strategy & Research.
As more people get smartphones, mobile payments in general and NFC (near field communication) specifically will have more room to grow.
That same report from Javelin Strategy & Research estimates that by 2016, 72 percent will own a smartphone, up from the current 51 percent.
“We think NFC is a great user experience and today provides the broadest reach in terms of merchant coverage compared to other technologies,” says Robin Dua, head of product management for Google Wallet.
Many had hoped that the recently released Apple iPhone 5 would come equipped with the NFC-enabled chip in order to push the process along. But the phone does not include an NFC chip.
“Equipping the most popular phone with NFC would have a been huge education moment for consumers and a big validation for NFC,” notes Thomas McCrohan, an analyst at Janney Montgomery Scott.
More than ten percent of Internet traffic is now on mobile devices, but mobile advertising still only accounts for less than two percent of all U.S. marketing spending.
“Mobile advertising has been touted as the next big thing since Apple’s iPhone debuted in 2007,” reports the Wall Street Journal. “Yet the promise remained unfulfilled because marketing companies have to navigate consumers’ desires for privacy with the enticements mobile devices offer, such as fresh information about users’ location and spending habits.”
Because advertisers are slow to make the switch to mobile, ad rates have stayed relatively low.
“About half of all U.S. mobile ad spending goes toward search ads, more than the roughly 47 percent of total digital spending going into Web search, according to eMarketer. Google takes a 95 percent share of all mobile-search revenue in the U.S.,” notes the article.
Advertisers are attempting to create experiences that are useful or fun. Others have started taking advantage of increased smartphone screen sizes with “takeovers” that briefly fill most if not all of the screen. This technique should be used sparingly though, marketers say, because consumers may get annoyed.
Placing ads in unfamiliar places is another method to overcome “ad blindness.” Although it has had mixed results, Amazon sees some traction with its sleep-mode ads for its Kindle e-readers and tablets.
Lastly, “banner ads — the boxes or rectangular ads on many mobile websites or apps — are known as the ‘spray and pray’ approach. Marketers, consumers and companies all said these ads are cheap, crude and annoy mobile users. Still, banner ads account for nearly $2 of every $10 spent on U.S. mobile ads.”
“In a Pew Research Center survey of 3,003 U.S. adults, 17 percent said they accessed news on cell phone or tablet device the day before. Even more — 20 percent — said they regularly get news from social networks like Facebook or Google+,” Mashable reports.
The overall online consumption of news increased ten percentage points from 2008 with 39 percent of respondents accessing news online the day before.
Twitter was not a popular news source for most; only 13 percent of participants used Twitter at all compared to the 53 percent that used other social networks.
“Less than a quarter said they read a print newspaper the day before, about half the number who did in 2000,” Mashable writes. “Magazine readership has likewise declined, though at a softer rate: 18 percent said they read a magazine in print the day before, versus 26 percent in 2000. Book-reading has, at least, remained flat, but more Americans are now reading books through electronic or audio devices.”
Television remained the most common source of news for Americans with 55 percent of those surveyed saying they watched news on TV the day before. These people also spent the most time consuming news, 12 minutes more than mobile consumers.
“Where news consumption habits shift, ad dollars are likely to follow,” notes the post. “TV advertising levels, which so far have remained steady despite growing competition from online advertising outlets, could be negatively impacted should younger consumers continue to gravitate towards other channels.”
“Print, it is clear, still has a tough road ahead. The landscape for social networks and mobile looks promising, but only if marketers can figure out how to demand better ad rates for those channels.”
Hitachi has demonstrated a technology that allows the company to encode data on “quartz glass.” The technique can reportedly store data for 100 million years.
Although the quartz glass formula is proprietary, TechSpot suggests it could be fused quartz. When quartz is subjected to high temperatures for long periods of time it “loses its crystalline structure and can be made into a glass-like substance known as fused quartz.”
Lasers create microscopic pits in four layers of quartz glass that represent binary data. Although the new technology boasts impressive longevity, it can only store about 40MB per square inch. This is about equal to compact disc density, but is much less dense than magnetic storage devices.
The claims that the material could last 100 million years come from accelerated age tests that exposed the material to 1,000 degrees Celsius for two hours. The glass reportedly showed no signs of degradation during the test.
