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  • Global Consumers Willing To Pay For Some Online Content

    Many global consumers are willing to pay for some online content or are open to increased advertising, but attitudes vary greatly by geography, demographics and content type, according to a new survey by Nielsen.

    Nielsen polled more than 27,000 consumers in 54 countries to determine attitudes about paying for online content and to gauge what types of content consumers were most likely to support financially.

    More than half (57%) of global consumers are willing to pay for professionally produced content such as music and movies, while 50 percent are willing to pay for current Tv shows.

    Paying-for-content

    Only 20 percent of consumers are willing to pay for blogs and less than a quarter (24%) would pay for user-generated video content. Nielsen found consumers are more likely to spend money on what they currently pay for, instead of what they already receive for free.

    Nearly half of global respondents indicated they would be open to more ads to support free content, but that varies by market. For example, 57 percent of respondents in the Middle East, Africa and Pakistan are more open to advertising, while just 40 percent in North America and 39 percent in Europe feel the same way.

     

    Related Articles:

    > Nielsen Also Puts Bing Up In November

    > November Online Video Trends A Mixed Bag

    > Online Video Viewing Continues To Boom

     

  • Are Google’s Ads So Relevant That People Won’t Block Them?

    A while back, Google launched an extensions gallery for its Chrome web browser. Ad-blocking add-ons are among the most popular for Mozilla’s Firefox, so it stands to reason that they will be for Chrome as well. With Google’s primary source of revenue being its ads, a lot of talk has surfaced about Google letting people block its own ads with its own product.

    Is Google was smart to allow ad-blocking extensions for Chrome? Discuss here.

    A recent article from the New York Times has elevated the discussion, calling the allowance of ad blockers a "test" for Google.

    Google wants people to use Chrome. For that to happen, it has to give people what they want. One point of view would be that the people who are most likely to block ads would just as use another browser that allowed them to do so if Chrome didn’t.

    Google doesn’t think that ad blockers will have much of an impact on advertising anyway. In December, Google Engineering Director Linus Upson participated in a panel discussion about the subject. He, Charles McCathieNevile of Opera, and Mike Shaver of Mozilla discuss it in the following clip:

    Add-on-Con ’09 ads and adblockers (closing keynote) from Robert on Vimeo.

    Upson says it’s "unlikely ad blockers are going to get to the level where they imperil the advertising market, because if advertising is so annoying that a large segment of the population wants to block it, then advertising should get less annoying." He thinks the market will sort it out. The others appear to take similar stances.

    The real question is how many people are really going to make the effort to block ads? As Wladimir Palant, who runs Adblock Plus on Firefox, told the NYT, ad blockers are still used by a "tiny proportion of the Internet population, and these aren’t the kind of people susceptible to ads anyway."

    Based on what Upton had to say in the panel discussion, Google is pretty confident that it can deliver ads people actually want, and that people (for the most part) will not want to block them if they see that relevance.

    What could hurt Google more is if Microsoft or Firefox implemented their own ad blocking capabilities by default. This would lead to average users browsing an ad-less web, because just as most people don’t go out of their way to download ad-blocking add-ons, they are unlikely to go out of their way to allow ads in such a scenario. However, it is pretty unlikely that this will happen, particularly on Microsoft’s end. They of course have their own ads to worry about.

    If ad-blocking from the browser actually did become a big problem for Google, one would have to wonder if the company woulnd’t find some kind of work-around. For example, what would stop them from serving ads directly in the Chrome Browser itself (in a toolbar area for example)? One could envision sponsored link-style ads like those served via Gmail. With Google’s interest-based advertising, relevance would still be at the forefront. But it probably won’t come to that anytime soon (at least not as a solution to the perceived issue).

    Wondering how many people actually use Chrome anyway? Ad-blocking from the browser does after all only matter if people are using that browser. Well, the latest numbers from Net Applications have Chrome’s market share surpassing that of Apple’s Safari browser. It’s worth noting that Google just released Chrome for Mac last month as well.

    As Doug Caverly  mentioned, "Chrome’s only been around for about 16 months, after all, and Safari’s had something like six years to make friends."

    Google’s Chrome OS is set to make things interesting later this year, as well. Chrome use is growing and will continue to do. Ad campaigns from Google may ease that growth along.

    Google made a bold move when it opened up its extensions gallery, allowing for ad-blocking extensions. Could this turn out to be a huge mistake on the company’s part or is Google’s confidence completely justified? Only time will tell for certain, but Google has long stood behind the promise of trying to deliver the best user experience. If users want to block ads, Google is going to let them. Share your thoughts here.


    Related Articles:

    > Chrome Cruises By Safari

    > Chrome Ad Campaign Nets Positive Results

    > Google Pushes Chrome With Newspaper Ads

  • Across-the-Board Growth Expected In Internet Industry

    The U.S. online advertising industry will shake off the recession’s effects and have an excellent time of it in 2010, according to one expert.  J.P. Morgan’s Imran Khan has predicted that just about every aspect of the sphere should experience significant growth this year.

    Let’s start with the subject of display advertising.  Ground was lost during 2009; in a document titled "2010 Internet Industry Outlook," Khan put the change at a negative 5.2 percent.  But he expects that $8.3 billion will be spent on display ads in 2010, which will work out to a year-over-year increase of 10.5 percent.  Not bad.

    Then an even more dramatic uptick will occur with respect to search advertising, if Khan’s forecast is correct: spending should jump from $14.6 billion in 2009 to $16.6 billion, an increase of 13.2 percent.  This spells good news for Google, Yahoo, and Microsoft (along with their shareholders).

    Finally, it’s possible that anything and everything with ties to mobile advertising will make money this year.  Khan thinks that spending on mobile ads will shoot up 45.0 percent, hitting $3.8 billion following 2009’s $2.6 billion.

    Let’s all cross our fingers and hope that these predictions prove true (or better yet, conservative).

    Related Articles:

    > Are Google’s Ads So Relevant That People Won’t Block Them?

    > More Media/Ad Trend Predictions For 2010

    > Google Seeking Not To Cross The Creepy Line

  • Apple Acquiring AdMob Competitor Quattro Wireless

    Update: The acquisition has been confirmed, and competitor AdMob issued the following statement:

    "We believe that Apple’s proposed acquisition of Quattro serves as yet another validation of the vibrant mobile advertising industry and can help accelerate the pace of innovation and competition in this space."

    Original Article: Apple is reportedly set to acquire Quattro Wireless for $275 million. This is according to the generally reliable Kara Swisher of BoomTown, who claims to have the information confirmed by several sources.

    Quattro Wireless is a mobile ad network similar to AdMob, which is in the process of being acquired by Google. Reports suggest that Apple was in the running for Admob, but was outbid, so the next logical step was to seek a competitor to stay competitive with Google in this market.

    Quattro Wireless

    The $275 million price tag is much smaller than what Google paid for AdMob ($750 million), but Quattro is considerably smaller. However, they both directly deal in advertising on smartphones, a market both Google and Apple are heavily competing in.

    Google’s latest iPhone competitor, the Nexus One is scheduled to be unveiled today. You can read a bit more about that here.

    According to Swisher, the official announcement about Apple’s acquisition of Quattro could come as early as today, but this has not been confirmed. Quattro is based in Waltham, Massachusetts. It counts Ford, Disney, and the NFL among its clients.

    Related Articles:

    > Consumer Groups Ask FTC To Block Google AdMob Deal

    > Google Provides an Update on the AdMob Acquisition

    > Google Buys Mobile Ad Firm For $750 Million In Stock<

  • More Media/Ad Trend Predictions for 2010

    More Media/Ad Trend Predictions for 2010

    In a recent article, we looked at some predictions from Nielsen for advertising trends in 2010. These included optimizing media convergence being a top priority, new models emerging to take advantage of smartphones, more cross-media ad campaigns, an increase in commercialization of social networking hubs, and more interesting and interactive online ads.

    A representative for Cross MediaWorks sent us some predictions for media, advertising and content trends in 2010 from that firm as well, that are worth sharing. These come from CEO Marc Krigsman (formerly EVP of Primedia Digital Video) and COO Larry Rubin (formerly SVP, Business Development, USA Networks and Vice President, Associate General Counsel – Transactions, Viacom).

    Cross MediaWorks 1. An improvement in ad spending in 2010, especially by the automotive, financial, and healthcare industries. However, spending will not return to pre-downturn levels. Overall, they think it will be a conservative year with conservative growth as companies concentrate on fine tuning their messages.

    2. There will [be] more emphasis on measurement of performance in 2010 with data being incorporated from other areas such as shopping carts, social media, and credit-card data.

    3. Advertising on both broadcast and cable television will remain the most cost-effective option for advertisers; viewership for both will continue to increase in 2010.

    4.  Spending on online and mobile will not get ahead of television for at least eight to ten years.

    5.  Smartphones like the iPhone will continue to pave the way for content platforms to emerge that will drive more users to mobile sites; however, what is considered a valuable mobile ad will remain undefined until that happens.

    6.  In the coming year, there will be a greater emphasis on "active eyeballs" as opposed to "passive eyeballs" with regards to online advertising and online ads will get more visual, [and] include multimedia.

    7. Video content available online will have to move to a subscription model or one with more advertising as media comes at a cost.  In television’s early days, for example, entire programs were paid for by an advertiser like "Texaco Star Theater."

    8. The Web can’t yet deliver a video product comparable to HD and the top-trafficked Web sites are informational; consumers continue to go to the Internet to look for information about their bank, their phones, etc.

    While we’re no the subject of predictions about trends for 2010, let’s not overlook a recent survey by Silverpop, which found that 40% of email marketers plan on increasing their budgets for the channel in 2010 and 47% said their budgets would stay the same.

    Related Articles:

    > Nielsen Shares Predictions for Advertising Trends in 2010

    > Email Marketing Budgets Set For Increase In 2010

    > Online Video Viewing Continues To Boom