As some of you, I’m coming back from a great vacation in the south of France. I was mostly offline for the duration of the vacation but still regularly picked-up French newspapers while I was there, most notably Le Monde (for national and international news) and La Provence (for local news). I kept a few articles that I think were blog-worthy and I’m going to share those with you in the coming days.
The first article titled “Rebond du marché publicitaire français en 2010″ (Advertising spending in France bounces back in 2010) was published on October 1st in Le Monde (paid link). The article discusses ad spending in France in the first semester of 2010 by various media vehicles. Data comes from Institut de recherches et études publicitaires (IREP) and data can be found here (.pdf).
I found the following interesting data points:
- Television is the number one media in terms of ad spending (by far) with 1.7 billion euros and a growth of 12.8% over the same period last year
- “Internet”, it seems, only takes into account display advertising (i.e. banners)
- “Internet” gets 264 million euros in spending, a growth of only 9% vs. same period last year. Outdoor advertising growth is almost as much with 7.3%.
What it means: a couple of observations. First, television still rules in terms of ad spending. That media hasn’t (yet!) been hit hard by the Web and still benefits from huge ad budgets. The atomization of TV programs (think on-demand online streaming) is still in its infancy and will not impact TV’s numbers drastically for at least 3-5 more years. Second, I’m not surprised display ads are not growing as fast as we would expect the Web to grow. Even though it is still the preferred method for online advertising, I’m not a big believer in its future. Third, I’m surprised IREP doesn’t do a better job at tracking online advertising in general. PagesJaunes Groupe, the French Yellow Pages, saw their online revenues grow by 6.7% just in the second quarter of 2010 (see press release in .pdf) for a total of 263.9 million euros. That’s an equal amount to what’s recorded by IREP for “display ads”!
February 22, 2010
[praized subtype="small" pid="66afa9c1b5e4cd2f613f200ec61d955d" type="badge" dynamic="true"] just released their forecast for US Local advertising revenues for the 2009-2014 period.
- U.S. local advertising market will grow to $144.9 billion in 2014 (CAGR: +2.2%)
- Spending on traditional media will decline from $115 billion in 2009 to $108.2 billion in 2014 (CAGR: -1.2%)
- Spending on online/interactive media is projected to grow from $15.2 billion to $36.7 billion (CAGR: +19.3%)
- Meaningful recovery beginning in 2012
- 55 percent of all ad spending is with local media
BIA/Kelsey is also preparing their next conference MarketPlaces 2010. Happening at the [praized subtype="small" pid="a998a4e65a611a1cd4e2711025422ec1" type="badge" dynamic="true"] from March 22 to March 24, the theme of the conference is “local verticals”.
Presentations I’m most looking forward to:
- Opening Keynote Address: Jon Brod, Executive VP, AOL Ventures
- Google @ Marketplaces 2010 Sam Sebastian, Director, Local & B2B Markets, Google
- The New Content Aggregators: Rick Blair, CEO, Examiner.com
- Keynote Address: Andrew Mason, CEO, Groupon
- The New Directory/Marketplace Plays with SuperMedia, AT&T Interactive, Local Matters and Merchant Circle
- BIA Kelsey: 10 Takeaways from Marketplaces 2010
I will be attending the conference. If you’d like to meet, ping me at sprovencher AT praizedmedia.com.
The [praized subtype="small" pid="c4d2d76ecb2f9ad3c44c7561da14799dd0" type="badge" dynamic="true"] released this week their report on 2008 Actual Online Advertising Revenue (.pdf). Some highlights:
- Online advertising revenues in Canada have more than quadrupled over the past five years, and grew to $1.6 billion (net) in 2008, up 29% from the $1.2 billion $1.241 million reported in 2007
- Online is now 11% of all advertising revenue
- French language advertising revenues grew by 22% in 2008 to $317 million (net), and accounted for 20% of total Online ad revenues in Canada during 2008
- 2009 Forecast: Online advertising revenue in Canada will grow to $1.75 billion in 2009 – an estimated 9.2% increase over 2008 actuals
- Search advertising continues to lead in terms of share of dollars booked by Online Publishers ($602 million/38%), followed by Display ($490 million/31%) and Classifieds/Directories ($480 million/30%).
The report also explains what are the perceived industry challenges and opportunities going forward. The following have been identified:
- Coping with the severity of the economic downturn
- Demonstrating Display advertising’s return-on-investment (with or without a click) in response to growing Advertiser emphasis on performance-based (CPC/CPA) pricing models
- Training offline media sales forces to effectively integrate Online into cross-media sales proposals
- The commoditization of Online media by the growing number and increased market share of Advertising Networks.
What it means: very good growth in online advertising in Canada last year with 29%. An interesting particularity of the Canadian market is the large share of Classifieds/Directory online revenue, almost as big as Display ads. That’s definitely due in a large part to [praized subtype="small" pid="7ac08d444f37191c8a97699e6530751c" type="badge" dynamic="true"] who reported revenues of $247 million in 2008 (most of them in Classifieds/Directories I suspect). They officially represent more than 15% of all online revenues in Canada. Impressive results.
July 24, 2009
AT&T released their second quarter 2009 results yesterday morning. Like Greg Sterling did, I had to dig down in the Statements of Segment Income (excel) document to find detailed information about their directory business. No information was directly provided in the press release.
Directory operating revenues were down 12.5% in Q2 2009 (vs. the quarter one year ago) at $1,231 million and segment income was down 27.5% (also vs. Q2 2008) at $314 million. No online advertising data was provided.
In related news this week,
- Yahoo! announced a partnership with AT&T Interactive (read YellowPages.com) to start selling Yahoo! local display ads to Yellow Pages advertisers. As the release says, “The agreement between AT&T Interactive and Yahoo! is the latest addition to the longstanding strategic relationship between AT&T and Yahoo!, which runs across many Yahoo! products and services, including portal and mobile services, as well as powering Yahoo! Local with advertiser content from YellowPages.com.”
- YellowPages.com introduced a new version of YP.com, the URL they acquired from Livedeal late last year. They’re experimenting with a more user-focused online directory site there, but nothing ground-breaking yet.
- Finally, in a strange and ironic twist of editorial fate, the Yahoo! Small Business blog was explaining to its readers yesterday ”When to Pull the Plug on Yellow Pages Advertising“. Bad timing guys!
July 22, 2009
Online highlights from McClatchy’s second quarter 2009 results unveiled yesterday:
“McClatchy continues its transition to a successful hybrid print and online company. Our digital audience continues to grow impressively. Average monthly unique visitors to our websites were up 30.1% in the second quarter following 26.7% growth in the first quarter of 2009. Still, the recession is impacting our digital business. Our digital advertising was down 2.9% in the second quarter of 2009, hurt particularly by declining employment advertising. Excluding employment advertising, which has declined nationally both in print and online, our online advertising revenue grew 24.7% in the second quarter of this year.
“Our digital performance has been aided by ownership stakes in CareerBuilder, Cars.com, and Apartments.com, leading companies in the digital classified advertising arena. And our growth in digital retail advertising of 50.7% in the first half of 2009 is fueled in part by our partnerships with Yahoo! and other technology companies.
“As we continue our successful migration to a multimedia company, we are less vulnerable to print declines and the secular shifts of advertising to digital media. Digital advertising represented 16.5% of total advertising in the second quarter, up from 11.8% in the second quarter of 2008. In June, digital advertising represented 17.3% of total advertising.
What it means: McClatchy, the Sacramento newspaper publisher, reported better than expected profits even though ad revenues fell more than 30%. Cost-cutting measures (severe layoffs and salary reductions) contributed to the results. Interesting to see that online revenues are up a very good 24.7% if you exclude employment ads. Also interesting: 17.3% of their total revenues came from online in June. McClatchy is the third-largest newspaper publisher in the US. They bought Knight-Ridder in 2006.