Category Advertising

Marketers, people are cynical, and hype is not the antidote.

The chorus of marketing voices has become cacophonous to the point where advertisers and their customers have tuned it out as so much white noise or have become hardened against it. We think the following makes sense and will help to separate you from the countless “dog and pony” shows. 

1. Conduct a thorough competitive analysis.
•  Marketers are becoming smarter, so competitive advantage is harder. Everything is online. It’s never been so easy to see what your competition is doing from a presentation perspective.
•  Assess your current competitive situation
•  Who are your competitors?
•  What are your core strengths/weaknesses?
•  What current and emerging opportunities and threats are imposed by the competitive environment?
•  Use this information to critically evaluate your value proposition.

2. Explore and test new media.
•  When we polled our staff, asking, “What are the most significant changes in marketing technology or tactics from a year ago?” new and emerging media were high on their radars.
•  Social networks. Even if you’re not ready for a presence there, go there; find your customers and observe them. Listen to what they’re saying.
•  According to a 2007 Deloitte survey of 2,200 U.S. consumers between the ages of 13 and 75, 85% of Gen Xers said they are influenced by someone’s recommendation.
•  Mobile Landing Pages and Mobile ad placement. Optimization for mobile will be different than for PCs. Begin to monitor and test now.

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Consumers Plan to Spend More, Save Less, and Pay Debts

According to the latest American Express Spending & Saving Tracker, more than half of adults are planning to spend more (14%) or the same (40%) in 2011 than they did last year, with the majority of that spending focused on themselves. Personal savings rates are still well above pre-recession levels and consumers will remain focused on saving, but they will set aside less than they did in 2010. After setting aggressive savings goals for 2010, $14,000 on average, consumers are paring back their savings target this year to a more modest $2,600.

Pamela Codispoti, senior vice present and general manager of Cardmember Services, American Express, says “… it’s encouraging to see that (consumers) feel more optimistic about their finances… they’re setting more realistic savings goals and… gained some financial breathing room to spend a bit more than in 2010.”

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Branded Display Ads Close Search Gap in 2011 and Beyond

According to a recent eMarketer forecast, growth in spending on online display ads will outstrip that for paid search through 2014, though search will continue to take the greater share of dollars. In 2010, both search and display will see increases greater than the rise in total US online ad spending, estimated at 13.9%. But between 2011 and 2014, the study projects online display spending will grow faster than overall online spending, while search spending will lag slightly behind.

US Online Display & Search Ad Spending Growth (% Change)
  Ad Spending Change
Type 2009 2010 2011 2012 2013 2014
Online Display -3.4% 13.9 10.5 14.4 10.4 12.5
Search 1.4% 15.6 9.9 13.6 10.2 10.8
Total 4.5% 17.0 14.0 19.2 12.8 17.0
Source: eMarketer, November 2010; (Display includes banner, rich media & video; search includes paid listings, contextual links, paid inclusion & SEO)

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If Your Target Audience is Teen Holiday Shoppers…

According to a timely AMP Insights Holiday Shopping Behavior survey looking at teens between the ages of 13 and 19, with 45% male and 55% female respondents, 39% began shopping on Black Friday and another 29% started a month ago.

Teens have deep pockets:

* 49% are planning on spending over $150 on gifts for others this holiday season
* 20% are planning on spending over $300 on gifts for others this holiday season

They’re planning to give gifts to those closest to them:           

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Online Video Advertising Takes The Lead

 According to the results of its inaugural survey of leading U.S.-based online publishers by BrightRoll, video advertising is outpacing other forms of online advertising by at least 25%, say two-thirds of the respondents. Citing the medium’s interactivity and ability to engage online audiences, 63% of publishers expressed optimism about the category’s future, predicting higher CPMs leading into 2011.

BrightRoll CEO Tod Sacerdoti, says “As consumers continue to… engage with video online, advertisers are being forced to respond in kind and to shift campaign dollars… online video… offers interactivity, targeting and verifiable reporting that print and broadcast do not… ”

Additional key findings from the report include:

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