Mediaboss Marketing

By Howard Baldwin, PCWorld Apr 17, 2012 6:55 AM

The Pew Internet Projects recent survey on Digital Differences revealed that 20 percent of adults are Internet innocents people who dont go online and do not think the Web is relevant to them -- but hidden beneath those overall numbers are even more interesting tidbits.

I delved further into the Pew survey results and these five surprising results:

When those Internet innocents were asked why they didnt go online, 31 percent of respondents said they were just not interested. This was by far the biggest percentage -- the next largest group of respondents (12 percent) said they didnt have a computer. How can you just not be interested in something that is rewriting the rules of communication, politics, publishing, commerce the list goes on. Even my 92-year-old father gets e-mail.

And speaking of senior citizens, the fastest-growing segment on social networking sites are older adults. You might have noticed this after your Aunt Ruth friended you on Facebook, but the results show that this growth may be driven by several factors, some of which include the ability to reconnect with people from the past, find supporting communities to deal with a chronic disease, and connect with younger generations.

Smartphones are doing what computers cant. The survey notes that groups that have traditionally been on the other side of the digital divide in basic Internet access are using wireless connections to go online. For instance, among those who own one, the smartphone is main source of Internet access not only young adults (no surprise there), but also minorities, high school graduates, and those with lower-than-average household incomes.

Even more surprising, in almost every smartphone category, Hispanics are more likely than whites to use smartphone features with greater frequency, whether its text messaging, Internet access, sending video, downloading an app or playing a game. Blacks also surpassed whites in their usage in most of the 14 categories, except for three in which the difference wasnt statistically significant.

Heres the only depressing statistic. According to Pew, the 27 percent of adults living with disability in the U.S. today are significantly less likely than adults without a disability to go online (54 percent vs. 81 percent). Computers have been heralded as the portal for the disabled to more fully participate in society, but whether because of cost, ability or technologys limitations, that hasnt come true yet.

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'Internet Innocents' Survey: 5 Surprising Results

NEW YORK--(BUSINESS WIRE)--

The IAB Internet Advertising Revenue Report for the full-year 2011 reveals that revenues soared to a landmark high of $31 billion. That milestone represents a 22 percent increase over 2010s full-year number, which itself had been a record-breaker at $26 billion. The report, released today by the Interactive Advertising Bureau (IAB) and prepared by PwC U.S., also unveils that fourth quarter revenues for 2011 hit a best-ever at $9 billion, marking a 15 percent increase over the third quarter 2011, which came in at $7.8 billion, and a 20 percent growth year-over-year in comparison to 2010s $7.4 billion.

Other highlights of the report include:

This historic moment, with an especially impressive achievement in mobile, is indicative of an increased awareness from advertisers that they need to reach consumers where they are spending their time--in digital media, said Randall Rothenberg, President and CEO, IAB. Pushing past the $30 billion barrier, the interactive advertising industry confirms its central place in media. Across search, display, digital video, digital provides a wealth of opportunity for brands and consumers. With the proliferation of smartphones and tablets, it is likely that the tremendous growth in mobile will continue as these screens become even more crucial to the marketing mix.

The year 2011 saw mobile advertising become a meaningful category, said David Silverman, Partner, PwC U.S. By combining some of the best features of the internet, along with portability and location-based technology, mobile advertising is enabling marketers to deliver timely, targeted, relevant, and local advertisements in a manner that was not previously possible. It is for these reasons that we expect strong growth to continue with mobile advertising.

Digital advertisings stellar performance in 2011 attests to the high-value marketers put on the medium, said Sherrill Mane, Senior Vice President, Research, Analytics, and Measurement, IAB. In addition, with advancement in areas like mobile and digital video, it appears that there will be robust avenues for interactives growth in the future.

Here are the results from the full year in comparison with last years numbers:

Total display-related

IAB sponsors the IAB Internet Advertising Revenue Report, which is conducted independently by the New Media Group of PwC. The results are considered the most accurate measurement of interactive advertising revenues because the data is compiled directly from information supplied by companies selling advertisements on the internet.

The survey includes data concerning online advertising revenues from Web sites, commercial online services, free email providers, and all other companies selling online advertising. The full report is issued twice yearly for full and half-year data, and top-line quarterly estimates are issued for the first and third quarters. PwC does not audit the information and provides no opinion or other form of assurance with respect to the information.

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Internet Ad Revenues Hit $31 Billion in 2011, Historic High Up 22% Over 2010 Record-Breaking Numbers

NEW YORK, April 18 (UPI) -- Internet advertising revenue soared in 2011, hitting $31 billion, a trade group based in New York reported Wednesday.

The Internet Advertising Bureau said revenues for ads rose 22 percent over 2010, putting revenues at a record high two years running.

The report on the industry was prepared by accounting firm PricewaterhouseCoopers.

The report also says the fourth quarter of 2011 produced $9 billion in advertising revenues on the Internet, a record for a three-month span.

For the quarter, revenues jumped 15 percent over the third quarter's take.

The fastest growth segment in the digital landscape was mobile advertising, which rose by 149 percent to $1.6 billion in 2011 from revenues of $600 million in 2010.

The report said display-related advertising brought in $11.1 billion in revenues, 35 percent of the total.

Retailers maintained their spot at the top of the list of industries using the Internet to spread the word about their wares.

Retailers spent $7.1 billion on Internet ads in 2011, 22 percent of the total, up from 21 percent and $5.5 billion in 2010.

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Internet ads generated $31 billion in 2011

Internet advertising revenue soared to a record high of US$31.7 billion in 2011, up 22 percent from 2010, according to a report released Wednesday by the Interactive Advertising Bureau and conducted by Pricewaterhouse Coopers.

Mobile advertising was the fastest growing of all segments, expanding by almost 150 percent to become a $1.6 billion industry.

The rate of growth is particularly impressive because digital advertising also shattered previous records in 2010. The industry grew by a larger percentage in 2011 than it did in 2010.

The industry continues to grow so rapidly because advertisers still have a way to go before they match consumers' embrace of Internet platforms, explained Sherrill Mane, the senior vice president of research and analytics at IAB.

"There's a fact of life called consumers. Consumers are using and embracing digital more and more, and fundamentally the advertising business is still playing catch-up. The money has to flow to where the folks are," she said.

Search advertising, digital video commercials and sponsorships grew as a percentage of the digital advertising market in 2011, according to the study. But mobile advertising was clearly the star.

Mane said that the explosion in mobile advertising reflects both the increasing popularity of smartphones and the relative newcomer status of the medium.

"For many reasons, one can assume that mobile will continue to grow at a rapid clip. One reason is that mobile is catching on with consumers, as well as with marketers and advertisers," she said.

However, "There's a proportion issue: It's not that mobile is outpacing all other digital so much as mobile is growing explosively from where mobile started," she added.

Internet advertising brought in almost half as much as all forms of television advertising last year, according to television data from Kantar Media.

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Internet ad revenue hit $31.7 billion in 2011, topping previous record

This post has been corrected as indicated below.

Internet advertising reached a record $31 billion last year -- a gain of 22% over 2010 spending, according to a report released Wednesday by the Interactive Advertising Bureau.

Advertising tied to Internet searches continues to dominate the category, accounting for 46 cents of every dollar spent online. Revenues for search advertising reached $14.8 billion in 2011, an increase of 27% from a year earlier, according to the IAB.

Mobile advertising showed the fastest growth -- amid the popularity of smartphones -- and the ability of marketers to deliver timely, relevant ads in a way that previously wasn't possible. The IAB reported that revenues rose to $1.6 billion in 2011, up 149% from the prior year.

"Clearly mobile has become a key category," said David Silverman of PricewaterhouseCoopers, in a briefing with the media Wednesday morning.

Another category showing significant growth is advertising associated with digital video. Revenue reached $1.8 billion last year, compared with $1.4 billion in 2010 -- representing a 29% year-over-year gain.

Retail advertisers continue to represent the largest buyers of Internet ads, accounting for about 22% of spending in 2011, according to the IAB.

[For the record, 10:52 a.m. April 18: A previous version of this post misidentified the Interactive Advertising Bureau as the Internet Advertising Bureau.]

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Internet advertising hits record $31 billion