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Online Ad Spending to Pass US Newspapers by 2011

There’s a new report out today that suggests online advertising spend will overtake US newspaper advertising by the year 2011, according to FT.com.

The findings are from a widely-watched annual research report on the media sector by Veronis Suhler Stevenson (VSS).

In the 2007 study, published on Tuesday, VSS forecasts that online advertising will grow by more than 21 per cent per year to reach $62bn in 2011, making it bigger than newspaper advertising, which is expected to total $60bn in 2011.

Broadcast television and cable and satellite television combined will continue to take the biggest share of advertising dollars, and are forecast to reach $86bn in 2011.

Makes you wonder if Google’s expansion into print advertising is a smart move or not.

Whadya think?

Your Marketing Job Now Outsourced to India & China

There’s a disturbing side-effect that’s coming from the increased use of internet marketing – it can be done cheaper in China and India.

While advertising continues to bring us greater efficiencies and cheaper costs, it’s also driving our need for faster turnaround and rapid deployment. When you can test 100 ads online within a week, you need a solution that can keep up with that pace, without breaking the bank.

I’ve seen two stories recently that suggests that marketing could follow technical support and end-up outsourced to a country with cheaper labor costs.

First, the NYT reports on Publicis’ efforts to build a global digital advertising network that uses offshore labor.

There’s a Use for Display Ads, After All!

Who knew display ads might actually be useful? A new study from Yahoo and comScore finds that online display ads produced 11% lift in dollars spent in in-store conversions. Search ads yielded a 26% lift in dollars spent.

Most impressive, however, was the result from a combination of search and online display ads: a 83% lift in dollars spent in later in-store conversion. The combination also increased incremental in-store revenue 90% (as opposed to 43% with search-only ads and 15% with display-only).

Display ads were also found to increase page views 37%—comparable to search ads’ effect (46%). Together? 68%.

Finally, MediaPost reports:

The study also found that a joint display and search campaign was more effective at converting online researchers to in-store purchasers–as the combination pushed 43% more in-store purchases than search (26%), or display (6%) alone.

AOL Acquires Behavioral Targeting Ad Network Tacoda

AOL has decided that its recent acquisitions of Third Screen Media, AdTech AG, Lightingcast and Advertising.com, didn’t quite send the message that the company is serious about online advertising.

To that end, the company has announced the acquisition of Tacoda, an online behavioral targeting advertising network.

“The acquisition of TACODA will build on our advertising momentum, letting us better serve advertisers by enhancing our ability to precisely target advertisements across an even broader network,” said Ron Grant, AOL President and COO. “We are committed to bringing advertisers and publishers a full range of tools and services, along with the widest reach, and with TACODA we’re taking another step toward that goal.”

AdSense for Mobile Beta Expands to US

Select invitations have started to land in the mailboxes of some US-based Google advertising partners. ClickZ also confirms the beta extention with a statement from a Google spokesperson.

We will continue to evaluate… and will refine the [mobile] product based on feedback from our users, publishers, and advertisers.

Although experts remain slightly skeptical about the placement of contextual advertising in mobile content …

You’re not going to have that flexibility and capability on the mobile phone, with its small screen.

… Lee Hancock, CEO of go2 Wireless, goes on to counter this argument with two positive flips of the coin.

Firstly, it may aid the discoverability of mobile content – a topic recently discussed at MobileMonday’s New York panel discussion on Mobile SEO.

Yahoo: New Vision, New Ads

Yahoo has two big news items garnering publicity today: an article about Susan Decker in the New York Times and a new ad format.

“Can She Turn Yahoo Into, Well, Google?”
The New York Times (via) starts off asking the right question: can recently-promoted Yahoo president Sue Decker change Yahoo fortune’s for the better? Well, if finally getting a turn in the Sunday Times counts, then perhaps. Or if her resume counts for something, yes.

However, the reporter didn’t actually interview Decker (she declined), so the article doesn’t provide a ton of new information. If you need to know more about the “Can They Save Yahoo?” debate and a laundry list of Decker’s successes and shortcomings within and outside of Yahoo (along with several concerned parties reminding us that she has little operations experience). Still, if you’ve not been apprised of Yahoo’s situation and the goals of their new leadership, it’s a good place to start.

New Yahoo SmartAds Offer Behavioral Targeting

It didn’t take long for the newly organized Yahoo advertising group to launch their first major initiative. CNET has details of the launch of Yahoo SmartAds which combines demographic, geographic and behavioral targeting that allows customized “on the fly” ads.

How will it work?

…instead of just seeing a generic ad for a Toyota Prius, a woman in San Francisco who conducts research on hybrid cars on Yahoo Autos could be served an ad for a local San Francisco dealer, along with information on the types of Priuses in stock and their purchase price. The ad, which is configured on the fly, could also feature a background color targeted for women in her age range, as well as a Golden Gate Bridge logo.