US Internet Ad Revenues Rise to Historic $17 Billion in First Half 2012, Up 14% Over Half-Year 2011

Mobile Increases Almost Two-Fold Year-Over-Year

In the first half of 2012, internet advertising revenues climbed to an all-time high of $17 billion, representing a 14 percent increase year-over-year, according to IAB Internet Advertising Revenue Report released today by the Interactive Advertising Bureau (IAB) and prepared by PwC US. This performance is compared to the landmark $14.9 billion reported for the first six months of 2011.

Also marking a 14 percent year-over-year increase, second quarter internet ad revenues for this year hit $8.7 billion, up from $7.7 billion during the same time period in 2011.

Highlights of the report include:

• Mobile generated significant growth – almost doubling year-over-year – up 95 percent to $1.2 billion in half-year 2012 from $636 million in the comparable 2011 period
• Digital video, a component of display-related advertising, saw an increase of 18 percent year-over-year, bringing in a little over $1 billion in revenue in the first two quarters of 2012 compared to nearly $900 million in the first six months of 2011
• Search revenues in the first half of the year totaled $8.1 billion, up 19 percent from nearly $6.8 billion during the same timeframe in 2011
• Display-related advertising revenues in the first half of the year totaled almost $5.6 billion, accounting for 33 percent of 2012 half-year revenues, up 4 percent from $5.3 billion in the first half of 2011
• Retail advertisers constitute the largest category of internet ad spending for the first half of this year, claiming 20 percent of the total revenues at $3.4 billion, while Automotive brought in $2.2 billion for first-half 2012, marking an uptick to 13 percent versus 11 percent of category spend reported for half-year 2011 at $1.7 billion

“This report establishes that marketers increasingly embrace mobile and digital video, as well as the entire panoply of interactive platforms, to reach consumers in innovative and creative ways," said Randall Rothenberg, President and CEO, IAB. “These half-year figures come on the heels of a study from Harvard Business School researchers that points to the ad-supported internet ecosystem as a critical driver of the U.S. economy. Clearly, the digital marketing industry is on a positive trajectory that will propel the entire American business landscape forward.”

“The tremendous growth of mobile advertising revenue over the past year is an indication of the importance of location to advertisers and mobility to consumers,” said David Silverman, a partner at PwC US. “Bringing the power of the internet to mobile devices has opened up a world of possibilities to both consumers and marketers.”

“Solid double-digit growth in a stagnating economy is a significant accomplishment,” said Sherrill Mane, Senior Vice President, Research, Analytics and Measurement, IAB. “There is evidence that CPMs are maintaining, and even increasing, further substantiating the vitality of the internet ad market.”

Story source: www.iab.net

The business of buying social

It shouldn’t be a surprise to anyone that the social juggernaut of our time decided to move into eCommerce.

Facebook said earlier this week it would partner up with some retailers, including Victoria’s Secret and Fab.com, to start its online commerce program. Basically, people can press the “want” button on Facebook, share that information with their friends, and then actually buy the products after being directed to the retailer’s website.

It’s no big revelation. Earlier this year a developer unveiled a piece of code suggesting Facebook would be doing exactly this, and analysts have seen it coming from a mile away.

(Also, as an aside, it takes more than a few hints from Pinterest, which should be a nice validation for the “other” social network.)

Of course, the move doesn’t just represent an attempt on Facebook’s part to boost its revenue and arrest a falling share price. It also signals a change in how businesses should think about social commerce.

Last week, Forrester released some research showing only 1% of online sales could be attributed to social media.

That’s a very low number. Now, it excludes small business, which would probably see a higher amount of sales, and it also excluded some important variables. But 1% is still a very low number.

Local expert Sam Yip, from research house Telsyte, made a point that contradicted the survey – social networking leads to sales, but not necessarily in a direct way. It builds brand awareness that eventually feeds its way through to your bottom line.

It’s an excellent point, but the main thought here is that social networking doesn’t necessarily convert sales in a direct way.

Facebook’s decision may change that. If you can create a system where people buy products through social networking, then it will lead to more sales, depending on your strategy.

Right now, Facebook’s program is restricted to a few retailers, and it won’t be opening up to small business any time soon, but it makes a key point – managing your ROI on social media is something that will only become more important, not less.

How you do that is up to you, but if you’ve built a prominent social media presence, then you need to start experimenting with sales. Using social media to refer certain products, or offer discounts, isn’t a bad idea if you can determine just how much traffic you’re getting through your Facebook or Twitter presence.

Even asking a question like, “How did you find this product?” at the end of a transaction can give you some key insight.

Facebook’s announcement doesn’t mean much for SMEs – at least, not right now. But it does show that social commerce is going to transform business and there’s no reason why you shouldn’t get a head-start.

You can follow Patrick Stafford on Twitter @pdstafford. Story by Patrick Stafford, story source: www.smartcompany.com.au

Vest lets Facebook users hug from afar

A vest developed in Massachusetts Institute of Technology lets Facebook users hug one another no matter how far apart they are.

A Like-A-Hug vest on display on Friday at the website of designer Melissa Kit Chow was touted as "wearable social media" that inflates to embrace wearers whenever Facebook friends "Like" items they post at the social network.

Chow worked with Andy Payne and Phil Seaton in the MIT Media Lab to create the puffy black vests, according to her website.

Like-A-Hug lets hugs "be given via Facebook, bringing us closer together despite physical distance", Chow said in a post describing the vest.

And, provided the sender is also wearing Like-A-Hug, a recipient can return a hug by squeezing their own vest to deflate it.

Chow described herself as a graduate of the Harvard Graduate School of Design who subtly skews everyday interactions with the environment for "a reawakening of a sensorial spacial experience".

Story Source: www.ninemsn.com.au

PM's Facebook discussion turns nasty

A Facebook QA with Prime Minister Julia Gillard has attracted sexist and hateful comments, with her office having to censor the comments.

Ms Gillard took to the social networking site on Monday to talk about her education policies.

But the discourse turned ugly, with one man calling the prime minister a slut.

Another man asked how her father was. John Gillard died last month.

'Get my dinner ready' posted another man, while one asked if her 'pubes' were as 'radiant, shiny and glorious' as his own.

A number of other Facebook users labelled her the worst prime minister and criticised her voice, with one saying her voice and demeanour were like nails on a blackboard.

Others jumped to Ms Gillard's defence, one posting that 'nothing any of these sexest (sic), Hateful, disrespectful, unaustralian idiots can get to you!'

'You are an inspiration to Australians and the world,' said another.

And another: 'Keep up the great work running the nation Julia! You have quite rightly earned the respect you deserve.'

Ms Gillard has an official Facebook fan page, which is maintained by her office.

A spokeswoman for Ms Gillard said the site was moderated to remove offensive comments and, like all Facebook sites, comments could only be removed after they had been posted.

'A handful of comments after the session were offensive and have been removed,' the spokeswoman said in a statement.

The question and answer session was the first of its kind by a senior politician in Australia.

While in Tasmania last week, Ms Gillard took part in a live question and answer session for a news website, with no levelling of offensive remarks.

Story source: www.bigpond.com