Online Advertising [22]
Google & Yahoo! to Stop Accepting Online Casino Ads
Google and Yahoo have decided to stop running advertisements for online casinos. The move, which take effect by the end of April, comes as federal prosecutors are threatening action against American companies that do business with Internet casinos that are based abroad. The prosecutors are arguing that the American companies are "aiding and abetting" offshore Internet casinos, whose operations are illegal in the United States. Prosecutors started a grand jury investigation last year, issuing subpoenas to American broadcasters, publishers and Web sites that run advertisements for online casinos. Yahoo would cease running casino advertisements on its United States Web site, but it would continue to run online casino advertising on its Web sites published in dozens of countries where Internet casinos are legal. Google however would stop running Internet gambling advertisements in all markets. [Full story: Web Engines Plan to End Online Ads for Gambling - The New York Times]
Google Expands AdSense Language Support
Google has introduced expanded language support for AdSense publishers. This expansion includes dedicated email support and account pages in French, German, Italian, Japanese, and Spanish. New applications for the AdSense program may be submitted in any of these five languages or in English, and AdSense ad code can be placed on pages with content in any of these languages, provided that those pages comply with Google's program policies and Terms and Conditions. In addition, you can now receive general or technical support in any of these languages.
Microsoft to Add Pop-Up Blocker to IE Web Browser
Microsoft recently indicated that it will add pop-up blocking features to Internet Explorer (IE) next year, as part of an update for Windows XP. Others have offered similar tools before, but because IE so thoroughly dominates the browser market, ad executives and internet watchers believe the changes could finally burst the bubble for pop-ups. Pop-ups are 13 times more effective than banner ads that run the length of a page, according to research from Advertising.com published earlier this year. That's helped push sales. From August to October, publishers delivered about 19.6 billion pop-up and pop-under ads to web surfers, out of a total of 266.4 billion online ads served during the period, according to Nielsen/NetRatings. [Full story: Is this really the end for pop-ups? - Silicon.com]
Overture Launches Ad Tracking System
Overture Services announced the launch of Marketing Console, an online integrated marketing intelligence product that enables advertisers to measure the performance of their marketing campaigns across all online channels. The Marketing Console measures Web-wide campaign effectiveness by tracking which campaigns, channels, and creative are generating the most cost-effective leads and conversions on their Web sites. The product offers advertisers a set of reports covering all of their online tactics, including an overall campaign summary and additional reports measuring campaign performance, visitor search behavior and site traffic quality.
Study Reveals 85% of Conversions Occur Days After Ad Impression
Up to 85 percent of conversions occur after the day the most recent advertising impression was served, according to research from Advertising.com. Using the Optigence platform, researchers analyzed anonymous user behavior based on data collected from over 370 million impressions served for three separate advertisers. The study examined the number and timing of conversions, occurring over intervals of five, 10 and 14 days after the impression. For the five-day monitoring period, approximately one-third of all conversions happened on the same day that the impression was served, but only nine to 11 percent occurred within three hours of the impression being served. The longer periods of monitoring revealed that up to 85 percent of conversions occurred days after a user was served an impression.
Rich Media Ads Grow A Steady 10% Per Quarter
According to the Q3 2003 ad serving trend report from DoubleClick, the growth of rich media is speeding up quarter by quarter, particularly in North America. Its use increased from 17.3 percent of all ads served in Q1 of 2002 to nearly 37 percent last quarter. And, while its use had been increasing a steady 10 percent per quarter, last quarter it increased 15 percent from the previous quarter. While clickthrough rates continued to decline quarter by quarter for both rich media and standard Internet ads, rich media clickthrough rates were more effective, getting an average clickthrough rate of 5.41 percent, as opposed to 1.57 percent for non-rich media ads. Standard banners (468 x 60 pixels) still account for the largest portion of all ads served at 58 percent, but declined in volume by 4 percent since this time last year. Its report data is based on nearly 1.1 trillion ads served by DoubleClick for clients globally since Q1 of 2002.
Google Introduces French, German, Italian & Spanish AdSense Ads
Google announce the rollout of their AdSense program for a limited number of non-English languages, including French, German, Italian, and Spanish. In addition, AdSense publishers will notice some updates to their account pages. The changes include new 'Settings' tab, the ability to specify a payee name, expanded payment history and a 30 character limit for address fields. [Full story: What's new with Google AdSense? - Google]
Judge Says Scumware Is Legal!
A federal judge said adware maker WhenU's pop-up advertising does not infringe on the trademarks and copyrights of web site publishers. This is the first legal ruling favoring desktop advertising companies in their fight with web site operators. The case was brought against WhenU by U-Haul who alleged WhenU violated its copyrights and trademarks by displaying pop-up advertisements when a user visited the U-Haul Web site. The judge clearly sided with WhenU, which argued that Web surfers control their own computers and what appears on them. Scumware operators such as WhenU and Gator offer users free software in return for viewing ads based on a user's browsing activity. A number of cases remain against WhenU, including suits brought by TigerDirect, 1-800 CONTACTS, and Wells Fargo. Gator has cases pending against it from TigerDirect, UPS, Hertz, L.L. Bean, and PriceGrabber.com. [Full story: Judge Says AdWare is Legal - Internet News]
Online Ads Moves Toward Larger Units & More Rich Media
According to DoubleClick's 2003 second quarter ad serving report, larger ad unit sizes, such as leaderboards and half-page units, and rich media ads, such as use Flash, pop-ups, interstitials, or Unicast and Eyeblaster formats, are becoming increasingly popular. It said nearly a third of the ads used rich media, up 14 percent from the previous quarter. The standard 468 x 60 pixels banner was still the most prevalent unit, accounting for 42 percent of ads served, but it dropped 23 percent from a year ago. The skyscraper remained in the No. 2 position, with 9 percent. Flash dominated rich-media forms, accounting for 13.4 percent of all ads served. DoubleClick found that rich media leaves an impression on consumers, as they are three times more likely to lead to a post-impression sale than static ads. Also, the report found that view-through rates, which measure some type of action within 30 days of viewing an ad, have continued to rise. However, the rates remain quite low at .63 percent, up just .02 percent from the previous quarter.
U.S. Online Ad Spending Back to 2000 Levels
U.S. online advertising spending is expected to account for $8.1 billion of the country's $293 billion total media budget by 2006, marking a return to 2000's Internet spending spree figures. Final figures from the Interactive Advertising Bureau (IAB) and PricewaterhouseCoopers revealed "keyword search" as the growth leader of 2002, accounting for 15 percent of ad revenues — compared to 4 percent in 2001 — and the category earned 21 percent of total ad format revenues in 4Q 2002. Sponsorships dropped from 26 percent in 2001 to 18 percent in 2002. "Banners" continued to lead the spending at 29 percent, down from 36 percent in 2001, and "classifieds" dropped one percentage point to 15 percent.
Pop-up Ads Generate 13 Times Better Click-through & 14 Times Better Conversions Than Standard 468X60 Banners
According to an Advertising.com analysis, pop-up ads generate a click-through 13 times that of the standard 468 x 60 pixels banner and a conversion rate more than 14 times better. The analysis was done over a one-week period with 15 million Internet users served 168 million ad impressions on the Advertising.com network of sites. The analysis also found that rich media failed to improve click-through rates but garnered four times better conversions. The study found that all ads lose their effectiveness when impression levels rise, with one to five impressions generating the best revenue return.
Bonzi Settles Deceptive Advertising Lawsuit
Bonzi Software, best known for its BonziBUDDY, a purple gorilla that accompanies users around the Net and suggests sites to visit, agreed to settle a class-action lawsuit accusing the company of deceptive advertising. The suit, filed in Washington state in November, accused Bonzi of engaging in a "diabolical scheme" that tricked Internet users into clicking through to Bonzi's site by displaying online ads that mimicked dialog boxes with "message alert," security alert," or "warning" in the creative. The settlement calls for Bonzi to include the word "Advertisement" in the header of all online ads that look like computer system warnings and in the subsequent Web pages a user arrives after clicking such an ad. According to Nielsen//NetRatings' AdRelevance unit, Bonzi was the No. 6 software advertiser online in April, running 141.6 million impressions. Bonzi also agreed to stop using potentially misleading interfaces, such as "x" boxes that do not close an ad. [Full story: Bonzi Settles Deceptive Ad Suit - Internet News]
Harvard Study Exposes 7,400 Web Sites 'Hijacked' By Gator
A Harvard University researcher, Benjamin Edelman, has completed a report into the workings of Gator. Gator is a utility, known as "spyware," or "Scumware," that monitors a user's Web browsing activity and displays relevant popup advertisements. Early versions of Gator's service placed pop-ups directly over the top of advertisements embedded in web pages, but the company has since ceased the practice. More recently, it has incorporated delays so that ads may be triggered only after visitors leave a web site. The report provides data as to how much advertising Gator is showing and to whom it is targeted. [Full story: Documentation of Gator Advertisements and Targeting - Harvard University]
IAB Announces Four Ad Sizes
The Interactive Advertising Bureau (IAB) announced the new Universal Ad Package (UAP), a creative suite of four ad sizes that will enable advertisers to reach the majority of each online publisher’s audience. Designed in response to advertiser demand for more standard online advertising guidelines, this creative suite will ensure a greater consistency with online ads regardless of where they are published on the Web. The UAP is intended to improve the efficiency and ease to planning, buying and creating online media. The Universal Ad Package interactive units (IU) include; IU 728 x 90, IU 300 x 250, IU 160 x 600, and IU 180 x 150. [Press release: IAB Announces Final Interactive Universal Ad Package - IAB]
Rich Media Ads Popularity Grows to 28% of All Ads Served
DoubleClick Inc., revealed that rich media continues to increase in usage, with 28% of all ads served being rich media formats, compared to 17.3% in Q1 2002. On average, rich media continues to increase by 10% per quarter, and could encompass nearly 40% of all ads served by the end of the year. Rich media includes dynamic ads that fly across web pages, pop-ups, and any ad that includes Macromedia Flash creative technology. Rich media has proven to generate higher rates of post impression activity per impression (0.78% vs. 0.41% for non-rich media). For advertisers using direct response metrics (click-throughs), rich media click-through rates have declined slightly to 2.14% from Q4 2002 levels of 2.44%. However, overall click-through rates have remained stable since the beginning of 2002, currently averaging 0.7%. View-throughs, which assess some action observed within 30 days of a consumer viewing an ad, have continued to rise, and are now averaging 0.61% for ads served by advertisers. The standard banner (468 x 60 pixels) is still nearly half of all ads served (46.7%), while the 120 x 600 skyscraper is the next most popular size, accounting for 6.9% of all ads served. Skyscrapers (120 x 600 pixels and 160 x 600 pixels) and large rectangles (336 x 280 pixels and 300 x 250 pixels) are the fastest growing units in the system: skyscrapers have nearly doubled since Q1 2002, now accounting for 8.4% of all ads served. [Press release: Doubleclick’s First Quarter Ad Serving Report Reveals That Rich Media Now Accounts For Nearly 28% Of All Ads Served And Has An Impact On Conversion - DoubleClick]
Unicast Debuts Full-Screen Superstitial
Unicast has introduced the Full Screen Superstitial, a 15-second, 300k online ad format that plays transitionally when consumers are moving between pages. The Full Screen Superstitial® joins Unicast’s Online Format Suite which already includes between-page Superstitial®, Over-Page (dhtml/floating ads from Ad4ever), and In-Page (banners, skyscrapers and boxes) ad units. According to the standard AdIndex test, Unicast’s Full Screen Superstitial beat the MarketNorms averages and what is more impressive is that this was accomplished at a low frequency level (often only one exposure) – they didn’t need multiple impressions to make an impact on consumers.
Ad Revenues to Rise 12% This Year as Traditional Advertisers Flock to the Internet
After tumbling 18% in 2002, ad revenues are expected to rise 12% this year, to around $6.6 billion, as traditional advertisers start opening their wallets. The biggest U.S. companies, from Estée Lauder Cosmetics to General Motors Corp., now make up 11 of the top 25 Net advertisers, up from 5 in 2000, according to researcher Nielsen/NetRatings. And while online advertising accounts for just 4% of overall U.S. ad revenues, the steady increase in spending by marketing giants is helping Internet publishers flourish. Lower ad prices, which fell 60% in 2001 and 2002, also are helping to fuel the frenzy. Paid search is expected to make up 33% of online ad revenue this year, up from 7% in 2001. At an average 35 cents per click, paid search is a lot cheaper than the $1-per-lead average for Yellow Pages listings. Peter Weedfald, Samsung Group's vice-president for strategic marketing, estimates that reaching 1,000 people online is about 50 times less expensive than doing it on TV. The company now spends 10% of its advertising budget online, up from about 1% in 2001. This year, ING is spending 15% of its marketing budget online, up from 5% in 2001. [Full story: Online Ads Take Off--Again - BusinessWeek]
Forbes.com Offers Half-Page Ad Format
Forbes.com said on Thursday it would join NYTimes.com and CBS MarketWatch in offering a half-page ad format, measuring 368 pixels by 850. The ad is a combination of two successful large formats: the large rectangle and the skyscraper. According to DoubleClick's fourth-quarter ad serving trend report, skyscrapers were second most popular unit, accounting for 8.3 percent of total volume. The use of large rectangles grew 300 percent over the year, although it still represented just over 2 percent of total ads served. Despite many reports of its demise, DoubleClick tracked the much-maligned 468 x 60 banner as accounting for half of all ads it served. However, the trend toward larger units has been undeniable. In its suite of standard ad units rolled out in December, the Interactive Advertising Bureau shifted toward larger units, noticeably leaving the banner out of the four endorsed sizes. [Full story: Forbes.com Offers Half-Page Ad Format - Internet News]
Retailers of Books, Music & Videos Spent $3.1 Billion in Online Ad Spending Last Holiday Season
Retailers of books, music and videos spent $3.1 billion to advertise their products online last holiday season, a rise of 40% over the prior year, as they led all product categories in online advertising expenditures, according to a new report by DoubleClick Inc. Apparel merchants were the second highest spenders in online advertising, at $2.7 billion, or 20% more than the prior year. The fastest-growing online advertising categories were toys/video games, up 72.5% to $1.84 billion, and consumer electronics, up 72.4% to $1.96 billion. [Full story: Books/music/videos category leads in online ad spending - Internet Retailer]
Advertising Revenue Rises 2.3 Percent from 3Q 2002 to 4Q 2002
A collaborative report between Interactive Advertising Bureau (IAB) and the New Media Group of PricewaterhouseCoopers (PwC) revealed a 2.3 percent increase in revenue from 3Q 2002 to 4Q 2002 — reflecting the first consecutive quarterly increase since the second quarter of 2000. "The improved performance over the past two quarters reflects a stabilizing online advertising market, highlighted by continued strength in paid-for-search results. The recent upturn, coupled with forecasts of continued expansion of broadband distribution, bodes well for a strong year in 2003," said Tom Hyland, chair, PricewaterhouseCoopers New Media Group. While the $1.5 billion generated in the fourth quarter represents a decrease of 9.8 percent from 4Q 2001, there is a shred of optimism among the comparative figures — it marks the first single-digit year-over-year percentage decrease since the first quarter of 2001. Despite a look at the brighter side of the market, 2002's $5.95 billion in online advertising revenue was 17 percent less than 2001's total.
Google's AdWords Ads Appear on Fastclick & Burst Media Network
Google has partnered with two online-advertising networks to display pay-for-performance text ads across sites affiliated with the networks--a move aimed at rapidly expanding the search giant's marketing business. In the last month, Google's AdWords, or text-link, ads have started appearing on sites belonging to Web publishers that are members of major ad networks, including Fastclick and Burst Media--which combined represent sales of ad space on nearly 24,000 sites. Google said it started syndicating ads to Fastclick and Burst, among others, as part of a test of its newly minted service to place text ads on pages selected for their relevance to a marketer's products or services. [Full story: Google, ad networks team on text ads - CNET News]
Online Ads Extend Reach by 10% & Increase Brand Awareness by 6%
Online advertising does work and can make a difference in reaching out to new audiences, a study says. The survey found that online advertising could extend the reach of an ad by about 10% and increase brand awareness by around 6%. The European Interactive Advertising Association (EIAA) looked at 15 major ad campaigns over the period of a month to find out what impact online advertising had on consumers. A panel of 2,000 people took part in the study which assessed the impact of adverts when watched only on TV, those seen just online and a combination of both. The next stage will be to study the relative costs of an online campaign compared to an offline one he told delegates at the recent FT New Media and Broadcasting conference in London, where the research was unveiled. In addition, micro-payments, paying a small amount such as a dollar to download music, were not catching on, the study found. Instead people preferred to pay for content via monthly or annual subscriptions, with a spend of around $10 monthly or $48 per year being the norm. [Full story: Adverts on the net 'pay off' - BBC News]