Growth of TV Advertising Superior to Growth of Online Display Ads in France

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”!

CPM of Various Media Advertising

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. (…)

US Advertising CPM by Media 2008 eMarketer

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.

Meta-Praized: Google & Outdoor Advertising, 100M IE7 Installs, DRM isn’t about Piracy, The Future of Telephony, Newspaper blogs, and more

Meta-Praized is a collection of links & stories we’ve “dugg” on Digg.com in the last few weeks. By clicking on that link, you can always follow what’s currently on our mind:

  • “Google plans street advertising presence” via Engadget
  • “Google Talk to Interoperate with AIM This Year” via the Google Operating System blog
  • “Microsoft Hits 100 Million IE7 Installs” via BetaNews
  • “Privately, Hollywood admits DRM isn’t about piracy” via Ars Technica
  • “Small Town News Station Heads to YouTube” via SplashCast Media
  • “MTV to buy RateMyProfessors.com” in News.com
  • “Asterisk: The Future of Telephony” via linux.inet.hr
  • “Google (Google Checkout) breaks ceasefire with eBay” via Valleywag
  • “Big Media’s Crush on Social Networking” in the New York Times
  • “Google Inc. is currently in negotiations to purchase Adscape Media (videogame advertising)” in CNN Money
  • “Traffic to newspaper blogs soars” via MarketWatch

Meta-Praized: Google & Outdoor Advertising, 100M IE7 Installs, DRM isn’t about Piracy, The Future of Telephony, Newspaper blogs, and more

Meta-Praized is a collection of links & stories we’ve “dugg” on Digg.com in the last few weeks. By clicking on that link, you can always follow what’s currently on our mind:

  • “Google plans street advertising presence” via Engadget
  • “Google Talk to Interoperate with AIM This Year” via the Google Operating System blog
  • “Microsoft Hits 100 Million IE7 Installs” via BetaNews
  • “Privately, Hollywood admits DRM isn’t about piracy” via Ars Technica
  • “Small Town News Station Heads to YouTube” via SplashCast Media
  • “MTV to buy RateMyProfessors.com” in News.com
  • “Asterisk: The Future of Telephony” via linux.inet.hr
  • “Google (Google Checkout) breaks ceasefire with eBay” via Valleywag
  • “Big Media’s Crush on Social Networking” in the New York Times
  • “Google Inc. is currently in negotiations to purchase Adscape Media (videogame advertising)” in CNN Money
  • “Traffic to newspaper blogs soars” via MarketWatch