April 23, 2009
Excerpts from “How Much Ads Cost” – eMarketer.
(…) broadcast TV had the highest cost-per-thousand (CPM) rate of $10.25, with syndicated TV at $8.77. Magazines, cable TV, newspapers, radio and outdoor advertising round out the space. (…)
As for spending in the online sector… it’s a little more complicated. (…)
For display advertising, Credit Suisse estimated that in 2009 the average CPM will be $2.39, down from $2.46 in 2008. (…)
As for paid search, JPMorgan projected that for every 1,000 searches, $75.33 would be generated from ads in 2009. (…)
What it means: always interesting to compare the CPM of various media. It gives you a good benchmark to calculate revenues needed to counter offline to online revenue migration. Again, no Yellow Pages CPM to compare though. I wonder if someone has made the calculation before for the directory publishing industry.
April 9, 2009
“ESPNChicago.com Launches Monday” via Mediabistro.com.
The Chicago-focused online sports destination will feature original content from some of the most familiar names in Chicago sports including former Bears wide receiver Tom Waddle and former Bulls announcer Chuck Swirsky.
ESPN Digital Media is also launching new technology that allows for geo-targeted content and ad insertion in both live audio streaming and downloadable audio. ESPNChicago.com will also make use of existing ABC/ESPN properties in the city including ESPN Radio 1000 and WLS-TV and abc7chicago.com.
Mini what it means: I’m seeing more and more “national” media brands (television, magazines, newspapers) deploying local strategies online. Makes sense. They leverage a powerful and trusted national brand online but they make it locally relevant. It’s something that’s usually very expensive to do offline but is cheaper to do online.
I recently wrote a message on Twitter saying that I was “thinking that newspapers are looking more and more like magazines. And magazines are looking more and more like books.” That thought came out of the following realization:
- Newspapers are trying to stay relevant by doing more in-depth analysis and longer articles (the Focus section of the Globe & Mail is a perfect example). They’re slowly morphing into magazines.
Magazines are still focusing on long articles and analysis but are also doing special topical issues. For example, Philosophie magazine recently published an amazing issue on twentieth-century philosophers. Monocle magazine’s about us section says its “More of a book than a magazine, Monocle’s designed
to be highly portable (it’s lightweight and compact) and collectable (it’s thick and robust)”. They’re slowly morphing into “books”.
- For many people, microblogging is replacing blogging. I had detailed that new phenomenon in a recent blog post.
I also received a couple of responses to my Twitter message. Bruno Boutot said “.. and tweets like blogposts?”. Dylan Fuller added “I
expand blogs R now newspapers or niche ‘zines… thus newspaper to mags to books. what R books becoming? perfect & timeless”. To which I replied that I agreed and that “books are permanent reference markers in time.”
A typical reaction to new competition is to add value to your product, to avoid becoming a commodity and having to fight on price only. I think we’re seeing that reaction on the whole “news” value chain.
- Microblogging is replacing blogging (expressing your thoughts)
- Blogging is becoming newspaper-like (more reporting)
- Newspapers are becoming the new magazines (more analysis)
- Magazines are becoming book-like (more permanent reference material)
- Books are still relevant as reference material
Have you seen the same thing?
Word-of-Mouth the Most Powerful Selling Tool; Traditional Media Advertising Still More Credible than Online Ads
October 11, 2007
Nielsen just released the results of their Nielsen Online Global Consumer Study (found via Eric Baillargeon’s blog). In it, “Nielsen (…) surveyed consumers on their attitudes toward thirteen types of advertising – from conventional newspaper and television ads to branded web sites and consumer-generated content.” Excerpts:
The Nielsen survey (…) found that while new platforms like the Internet are beginning to catch up with older media in terms of ad revenues, traditional advertising channels continue to retain the public’s trust. Ads in newspapers rank second worldwide among all media categories, at 63 percent overall, while television, magazines and radio each ranked above 50 percent. (…)
Although consumer recommendations are the most credible form of advertising among 78 percent of the study’s respondents, Nielsen research found significant national and regional differences regarding this and other mediums. Word of mouth, for example, generates considerable levels of trust across much of Asia Pacific. Seven of the top ten markets that rely most on “recommendations from consumers” are in this region, including Hong Kong (93%), Taiwan (91%) and Indonesia (89%). At the other end of the global spectrum, Europeans, generally, are least likely to trust what they hear from other consumers, particularly in Denmark (62%) and Italy (64%).
The reliability of consumer opinions posted online – which rated third, at 61 percent overall – also varies throughout the world, scoring highest in North America and Asia, at 66 and 62 percent respectively. Among individual markets, web-based opinions such as Blogs are most trusted in South Korea (81%) and Taiwan (76%), while scoring lowest, at 35 percent, in Finland.
What it means: a few weeks ago, I blogged about the fact that word of mouth might actually be the biggest opportunity directory publishers have seen in the last few years given that the Web was becoming a big word of mouth machine. These numbers clearly show that i) traditional word of mouth is still the most trusted source of advertising and ii) online word of mouth is not far behind. It’s also interesting to note the differences in the various geographical areas.