This past year, digital advertising online and via mobile crossed the $40 billion mark for the first time ever, according to the Internet Advertising Bureau. Since 2004, the average growth rate has been 18 percent. And this year, digital ad revenues surpassed broadcast television for the first time.
Not shockingly, mobile is leading the charge.
Search remains the largest overall category, at $18.4 billion, and display hit $7.9 billion, according to the IAB’s numbers, but those categories are growing much slower than mobile and digital video ads. Search is “only” growing at 8.6 percent, while mobile ad revenue jumped 110 percent to $7.1 billion last year, and digital video ad revenue has tripled over the past few years to $2.8 billion.
It’s important to note that, while web and mobile advertising revenues beat out broadcast TV for the first time, broadcast + cable advertising revenues still dwarf the digital take. And, of course, networks are aggressively expanding to new digital means of distribution.
While the digital ad market is expanding, it’s also extraordinarily concentrated — perhaps more so than any advertising market since there were just three TV networks.
Google is looking to push its wearable computer Glass into the enterprise.
With the Glass at Work program, Google is trying to make it easier forcompanies to begin using the wearable computers for their business.
“In the last year we’ve seen our Explorers use Glass in really inspiring and practical day-to-day ways,” the Google Glass team wrote on its Google+ page. “Something we’ve also noticed and are very excited about is how Explorers are using Glass to drive their businesses forward.”
The Washington Capitals, Washington D.C.’s hockey team, has already been working with fans who use Glass, Google noted. The Capitals partnered up with APX Labs to create a Glass app that allows the team’s fans to see real-time stats, instant replays and different camera angles.
The hockey team may be a good example of how businesses can take advantage of Glass, or any upcoming wearable, according to Patrick Moorhead, an analyst with Moor Insights & Strategy.
“My contention has always been that wearables are a best fit for vertical applications,” he said. “I think this is good news and I think companies will use this program. It is Glass’ best shot so far at an ecosystem. In these vertical usage models, it’s more about getting the job done versus looking cool to your friends.”
Moorhead also noted that with Google trying to push Glass into the enterprise, it might signal the company’s realization that building out a horizontal platform will be more difficult than once thought.
It seems as if millennials have avoided traditional media ever since they learned how to read.
The results of new research by marketing startup Crowdtap and the global research company Ipsos shed new light on how the connected generation gets its news. When it comes to trust, it turns out, millennials almost always choose their peers over professionals.
User-generated content (UGC) is media created by your peers. It includes status updates, blog posts and restaurant reviews — any content from non-professionals without any real motivation besides adding an opinion to the sea of already existing opinions. In a more logical world, it isn’t the type of content we’d trust over a professional’s review.
Ipsos’ study, however, reveals that millennials trust UGC just as much as professional reviews. UGC is also 20% more influential when it comes to purchasing and 35% more memorable than other types of media. You can chalk that up to the fact that millennials spend five hours per day with UGC.
The infographic below gives the visual breakdown of how much time millennials are spending with UGC, where they’re getting it and how it’s affecting the media landscape.
Click to see infographic
In a new CMO report from Deloitte and Salesforce ExactTarget Marketing Cloud, the 5 new CMO expectations were discussed. The 5 expectations were:
- Take on Topline Growth
- Own the Customer Experience
- Dig Into Data-Based Insights
- Operate in Real Time
- Master the Metrics that Matter
Are CMOs ready to face these expectations? Not really, but they’re getting there. 53% of CMOs feel the pressure to enable revenue growth, but they struggle because they don’t completely own the conversion path. This has been one of the bigger problems that CMOs are facing; they have to work across functions in order to get things done. This comes into play with the customer experience, too. CMOs now own the largest share of the customer journey, but they need to work with product and service teams in order to create an optimal customer experience across all channels. There’s no doubt that CMOs are feeling the pressure of the digital era, but with that comes big opportunity for growth and the ability to reach all of these high expectations.
As the use of mobile devices continues to climb, the use of dedicated apps is also increasing — but is this a natural evolution, or should we be worried about apps winning and the open web losing? Chris Dixon, a partner with venture-capital firm Andreessen Horowitz, argues in a recent blog post that we should be concerned, because it is creating a future in which the web becomes a “niche product,” and the dominant environment is one of proprietary walled gardens run by a couple of web giants — and that this is bad for innovation.
Dixon’s evidence consists in part of two recent charts: one is from the web analytics company comScore, and shows that mobile usage has overtaken desktop usage — an event that occurred in January of this year. The second chart is from Flurry, which tracks app usage, and it shows that apps account for the vast majority of time spent vs. the mobile web, an amount that Flurry says is still growing. I’ve combined the two charts into one (somewhat ugly) graphic below:
If apps are winning, is the web losing?
The implication of all this is obvious, says Dixon. Mobile is the future, and what wins on mobile will win the internet — and “right now, apps are winning and the web is losing.” Not only that, but Dixon argues that the problem is likely to get worse, as more companies realize that an app gives them much more control over the user experience than a website. And with less and less investment in making the web experience better on mobile, it will continue to deteriorate, which in turn will push users even further towards the use of apps.
Framingham, MA – April 8, 2014 – International Data Corporation (IDC) today announced a new report, “United States Technology Buyer Forecast by Vertical: 2012 to 2017,” (Document # 247588) which examines technology spending by 12 buying segments and how this new technology purchasing behavior differs by 15 vertical industries. According to the new report, the business technology spending market will grow at 6.9% 5 year CAGR from $236.6 billion in 2012 to $330.7 billion by 2017, while enterprise IT grows slowly at a 1.9% 5 year CAGR from $213.0 billion to 233.5 billion over the same forecast period.
- ClicktoTweet, “Business funded technology is expected to reach $275.2 b in 2014, accounting for 55% of total United States technology spending”
The new forecast quantifies how much money business areas including Accounting / Finance / Billing, Customer Service, Engineering, Architecture & Research, Human Resources, Industry Specific Operations, IT, Legal, Marketing, Other Horizontal Operations, Sales, Security and Risk and Supply Chain Management are spending on technology, and how this new paradigm differs by industry. Key findings include:
- Business funded technology is expected to reach $275.2 billion in 2014, accounting for 55% of total technology spending. Industry specific operation is the largest business line, capturing approximately 45% of total business funded technology in 2014
- Enterprise IT spending is growing only at a 1.8% 5 year CAGR, far below the overall 5 year technology CAGR of 4.6%. Only healthcare enterprise IT is growing faster (than overall technology spending.
- Marketing is the fastest growing functional area, growing at a 5 year CAGR of 9.5%, reaching nearly $26 billion by 2017. The marketing function within the Communications and Media industry will spend the most on marketing in 2014, with the retail vertical growing the fastest over the forecast period (11.2% 5 year CAGR).
There’s no consensus among journalists about what the term multimediameans, or even whether to use it anymore.
The multimedia skills listed in a job advertisement might span a range of specialties from web developer to videographer. Some ads specify “proficiency in multimedia” with no further explanation. A 2013 ad seeking a multimedia producer was more precise: “Your core duties will involve a variety of multimedia — audio, video, photos, informational graphics, and motion graphics — to support our core news content.”
“One of the most pressing needs mentioned by journalists in various countries was the acquisition of new multimedia skills,” according to findings from a recent study that surveyed more than 29,000 journalists around the world.
Despite the continuing use of the term multimedia, not every journalist thinks it should be used nowadays. Eric Maierson, a producer at MediaStorm since 2006, hates the word multimedia. There is irony in that, because until recently, MediaStorm called itself a “multimedia production studio.” However, Maierson explained: “I believe ‘multimedia’ is the word we’ve come to use when describing photographers who make documentaries.” (Nowadays MediaStorm calls itself a “film production and interactive design studio” and produces mostly video documentaries. Past projects include Crisis Guide: Iran, a good example of pre–“Snow Fall” multimedia.)