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Canadian Advertising Growth Trends

Monday, August 16th, 2010

Advertising spending has started to rebound this year after last year’s slide, according to a recent article in Marketing Magazine. Canadian advertising spending has rebounded more quickly than U.S. post-recession ad spending with Canadian ad spending expected to grow 5.4% in 2010, compared with 1.1% in the U.S.

Year over Year Total Advertising Expenditures in Canada:

  • 2008: $10.2 billion
  • 2009: $9.3 billion; down 8.4%
  • 2010 (projected): $9.84 billion
  • 2011 (projected): $10.2 billion
  • 2012 (projected): $10.6 billion
  • Fueling the rebound is spending in Internet Advertising as it continues to climb and will soon become the 2nd most popular medium in 2011. Internet advertising spending is projected to rise 13% this year and 12.7% next year to $2.2 billion, when it will pass newspaper advertising as the second most popular medium in the country behind only TV.

    Other key findings from the report include:

    • Paid search made up 50.2% of all Internet spending in 2009 and expectations are that it will get to 52.6% by 2012.
    • Display’s contribution to total internet spend fell from 32.9% in 2008 to 31.9% in 2009.
    • New formats such as web video, mobile and social media are expected to help display stabilize this year and increase its share of internet spend to 32% in 2012.
    • In 2009, about $18 million was spent on mobile advertising, rising to $30 million this year, $55 million in 2011 and $92 million the year after that.


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    Point of View: Bing

    Friday, June 19th, 2009

    Overview

    Microsoft recently relaunched their search platform under a new banner, Bing. The previous incarnation, Microsoft AdCenter, launched a few years ago and has never really challenged Google’s market share leadership. There are three key hurdles Microsoft faces in trying to gain a stronger foothold in the search market:

    1. Microsoft has to compete with the familiarity of Google and overcome the habits people have established with it. With people often being creatures of habit, this isn’t easily accomplished.
    2. They need to create a product that not only catches up to, but also surpasses the existing market leader with new bells and whistles that users wouldn’t otherwise have access to.
    3. Microsoft’s brand is not as strong as Google’s and Google continues to carefully cultivated evangelism toward their brand.

    Today’s Opinion

    So far most influencers online are panning Bing, but they know that raising the search bar will only elevate everyone else’s game. Microsoft has positioned Bing as a decision making tool, alluding to the fact that this might be the long awaited foray into Web 3.0, also known as the Semantic Web. However, in its current state, Bing is not a product that is revolutionizing search. Microsoft is employing similar strategies they’ve used in the past to incentivize people to use their search platform, such as Club Bing.

    There are still some black box features to Bing, but one known feature is the reverse IP look-up executed during a search query. What that enables Bing to do is identify the person’s geographic location and serve localized content and mix it within the results.

    They have layered the interface with some nice roll over previewing functionality, added some dynamic global navigation against the search results and other minor bells and whistles; but again it’s basic functionality and results delivery aren’t yet gigantic leaps forward.

    Microsoft is spending a lot of money to promote their newest search solution. The ad campaign looks good, but any buzz to date has been manufactured; so the real questions will be answered once the ad dollars cease beyond the launch phase and we’ll see if they maintain growth or even sustain the market share they acquire during the promotional launch period.

    What Bing Means to Marketers

    So far, Microsoft’s Bing still lags behind Google and Yahoo in market share. There’s no doubt they will gain more ground, which will likely come from setting Bing as the default page in their next Explorer release and embedding it’s search capabilities into Hotmail and other existing Microsoft platforms. For most marketers major changes to SEO and SEM strategies aren’t recommended at this point as it’s worth waiting for to see what adoption rates will look like.

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    Media Defined

    Friday, January 16th, 2009

    Marshall McLuhan coined the phrase, “The Medium is the Message” in 1964. His theory postulated that how the media is deployed is equally important to the actual content, as it influences how the message is received. In his theory, there is no distinction between paid and non paid media and while this is an older definition, it is still held true today.

    At a November 15, 2008 U.S. forum on digital media, P&G marketing executive Ted McConnell, stated that “I think when we call it ‘consumer-generated media,’ we’re being predatory. Who said this is media? Media is something you can buy and sell. Media contains inventory.” Mr. McConnell really defined Media as “paid” placement, whereas social media and user generated content on places like Facebook had no merit as being termed Media.

    The two definitions of media are different. Our belief is somewhere in between the two definitions. We believe that media can be paid or non-paid and it’s the context that matters. Simply throwing up a banner type placement within a social media environment does not effectively communicate any marketer’s message. However, determining tools to engage and encourage communication within these forums can effectively use the medium. 

    Simply put, Media can be the message as long as it is put into the context of understanding the environment and the users’ mindset, needs and motivations.

    Search Engine Marketing - SEM 101

    Tuesday, January 13th, 2009

    What is Search Engine Marketing (SEM)?

    Search Engine Marketing (SEM), Paid Search Advertising or Cost per Click (CPC), consists of placing ads for products or services on search engines and content sites across the internet. These ads are a small text link or image ad that link to the advertiser’s web content. The advertiser pays for click throughs from the ad.  Leading search engines include: Google, Yahoo! and MSN.

    SEM is a measurable form of marketing and can be optimized based on testing and analysis of results.  SEM campaigns allow for a great deal of control and can be targeted for budgets, geographical and time restrictions.

    How does Search Engine Marketing work?

    When a searcher visits a search engine and enters a query - i.e. “plasma TVs” - the search engine will seek out search queries related to the selected keywords and display the results, which in this case may be links to web pages containing information about plasma TVs.

    The search engine results page also displays paid ads that contain relevant keywords from the query. Paid search advertising results usually appear on the top or right side of the search engine results page.

    SEM Quick Tips:

    Set goals for your SEM campaign and choose success metrics to track accordingly.

    Coordinate offline campaign efforts to better leverage the online SEM campaign.

    Know your target audience and choose keywords based on how they will search for your product/services(s).

    Expand into keyword phrases, two or three word phrases generally work best.

    Group keywords into categories or AdGroups based on similar attributes to best identify results.

    Write ads according to a single theme.

    Have more than one text ad per ad group and search engine.

    Include your campaign keyword terms.

    Track and analyze results. Optimize throughout the campaign.

    Test and refine; this applies to AdGroups, keywords and text ads.