Ad-Blocking Is Showing No Signs Of Slowing Down

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While many companies thrive on using ads to get the message across to customers, not everyone is a fan of them. In fact, a large number of consumers have managed to utilize some form of ad-blocking service — and it’s becoming more of a common business practice than you might expect.

But now things could be getting a bit more heated in the ad-blocking market, according to a article from The New York Times. With the release of last week’s iOS 9 update from Apple, users can now temploy ad-blocking apps to keep most ads from appearing. With that, consumers have been ordering them in droves, with the likes of such programs as Peace, Purify and Crystal soaring to the top of Apple’s App Store sales chart in that time frame.

As a result, consumers feel that they’re getting a better web browsing experience, although some web publishers feel as if they’re being left out in the cold. The maker of the ad-blocking app Peace, Marco Arment, removed that app from the service and offered refunds, stating that although blocking ads can “benefit a ton of people in major ways, they also hurt some, including many who don’t deserve to be hit.”

The ethics of ad-blocking were already put into question with several successful desktop programs, as some believe that ads are what help the Internet with its circulation — even allowing some companies to make a healthy living as a result. With these limitations, companies won’t be able to benefit, mainly due to a more basic advertising model.

“When ad blockers became the most downloaded apps in the App Store, it forced publishers and advertisers to rethink the role that advertising plays on the web,” said David Carroll, an associate professor of media design for the Parsons School of Design.

Apple responded with the introduction of such software saying that it makes “for an improved mobile browsing experience,” according to The New YorkTimes.

Still, that’s a business practice that should have some companies concerned, as more and more consumers are taking part in ad blocking. Some 16 percent of those who use the Internet in the U.S., approximately 45 million people, already have an ad blocking service in place — that’s a 48 percent increase over the past year, according to Sean Blanchfield, operator of Irish ad block tracking service PageFair. The site indicates that ad blocking could easily cost publishers about $22 billion in revenue for this year alone.

John Gruber, a technology blogger for Daring Fireball, indicated on Twitter that “it’s wrong” if an ad blocker stops all kinds of advertising. “The ad network I’m a part of, the Deck, only serves ads that are fast to load and don’t track you,” he said. “In my opinion, they’re good-looking ads for high-quality products and services. Why block that ”

“This will be hard on small publishers,” said David Jacobs, chief executive of 29th Street Publishing, which helps publishers create apps. “There are definitely some small publishers out there that make 50 percent to 75 percent of their revenue from ads, and they have margins of about 10 percent.”

He did suggest, however, that “publishers will really need another way to make money” with more “good” ways to advertise, instead of “bad.” “I think that people have also underestimated how much has to change between the reader and publishers,” he explained.

Here are the general takeaways from the iOS 9 ad-blocking introduction…

First off, ad blocking is not a new practice. It’s been around for years, but is starting to build up reasonable steam not only on desktop PC’s, but also mobile.

Secondly, Apple isn’t trying to punish any particular companies with this policy. Its focus has always been on customer service, and giving owners of its iPhone and iPad models the best experience possible — and that includes managing ads so that it doesn’t interrupt said experience or, worse yet, “gum” up the hardware with unnecessary loading time.

Finally, this could be the wake-up call for marketers to make more effective ad campaigns, as companies now need to find a way to make advertising more receptive to consumers, rather than badgering them or, worse yet, making them concerned for security purposes.

And for those looking into further insight in ad-blocking, eMarketer has an outstanding report,indicating that, according to Q2 2015 data provided by GlobalWebIndex, 34 percent of those between the ages of 16 to 24 and 31 percent of those between 25 and 35 use ad-blocking services. The chart below shows just how widespread it really is.

 

ad block1ad block2

 

App Use More Popular Than TV Viewing

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With so many services (mobile and otherwise) available to access them, applications have become quite popular with users. So much, in fact, that they’ve managed to overtake traditional television viewing, according to a story from TechCrunch.

Based on numbers provided by Flurry, the time spent with mobile applications by the average U.S. consumer has now managed to overtake TV. The average person now spends approximately 198 minutes per day using applications of some kind, compared to watching 168 minutes of television daily. Keep in mind, though, that this doesn’t include time spent with mobile web browsing, although that does count as an app.

With that included, the time spent on mobile devices would reach around 220 minutes — or nearly four hours — per day.

As you can see from the chart above, TV dominated back in the second quarter of 2013, with 168 minutes spent watching programs compared to 126 minutes using apps. This number continued into 2014 with similar stats, although apps caught up a bit by 139 minutes. This year, however, shows a stark difference, with TV holding its ground, while application time took over.

Flurry did note that it’s hard to really see just how much TV viewing is done these days. Dedicated viewing can be tough to gauge, since some consumers utilize it as “background noise” while playing with their phones.

It also noted the growing demand for content in app format for consumers, as well as their willingness to pay — for example, forking over a monthly fee on Hulu to get ad-free service. Other subscription programs like Netflix and HBO Now play a part in this as well, ranking in the top grossing charts on the Apple App Store.

That led into the second part of Flurry’s research, gauging paid content versus advertising. Global mobile revenues are posted in the chart below, with in-app purchases overtaking mobile ads, where last year mobile ads easily led. In-app purchases have $33 billion, whereas mobile ads generated $31 billion for this year. There’s still clearly money to be made in both categories.

Apple CEO Tim Cook pointed out the power of apps — and the money to be made from them — during the company’s presentation yesterday, stating that “over 60 percent of paid TV consuming is done through an Apple device. When you experience TV through an app, you realize how much better it can be.”

It’s not likely that the power of apps will slow down either, especially with a fleet of new Apple devices (like the new Apple TV) that shall use them to a greater extent.

Digital Ad Market Growing In 2016

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While worldwide advertising spending was originally projected to drop this year from previous estimates, U.K. based marketing research service Warc has changed its tune, mainly due to the shifting of online Internet advertising.

A report from Mediapost indicates that advertising spending is now expected to rise 2.3 percent for the year, mainly due to the U.S. and Chinese markets. Separately, the U.S. will grow 1.4 percent and China will increase even more by nine percent. India is expected to go even higher by 16.1 percent, while Russia will actually drop by 13.1 percent

In this report, Warc also details a drop in worldwide TV advertising, by 1.9 percent for this year, although it’s expected to pick back up again by next year, by 2.5 percent.

So where is the rise in this spending Online. The report shows that Internet advertising will actually become the biggest ad medium for next year, with 16.1 percent this year and 12.9 percent over the next year. Considering that the Internet is already the biggest ad platform in half of the world’s markets, this will expand this growth even further.

However, that doesn’t mean all the markets will thrive. With the big shift to digital, regular print – magazines and newspapers – will see a drop. Declines of 10.4 percent for magazines and 9.2 percent for newspapers are expected this year, and even more next year, by 7.4 and 5.8 percent, respectively.

As far as which markets will dominate in terms of advertising share, the United States will continue to have a hefty part of it, leading with 36.9 percent. Coming up in second is China by 19.3 percent, Japan in third with 8.9 percent, and the U.K. (5.6 percent), Germany (5.5 percent) and Brazil and India (5.2 percent each) rounding out the list.

These estimates aren’t likely to change, but considering the popularity of certain ad mediums – like in mobile – there’s always a possibility.

Jim Norton On The Future of Digital Ads

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by Evan DeSimone

With over 20 years of experience in the ad industry, Jim Norton has had a front row seat to the rise of digital advertising. As head of advertising sales for AOL’s entire brand portfolio, he has steered the monetization of web media staples like The Huffington Post, Engadget, StyleList, AOL On and MapQuest. Norton also chairs the American Ad Federation, a position from which he has championed innovative partnerships as a means to keep the digital ad space vibrant and thriving.

We sat down with Jim to discuss his goals for the chairmanship, his insights into the digital advertising space, and how he sees the roll of video evolving both at AOL and as the future of the industry itself.

As chairman of the American Ad Federation, what do you hope to accomplish?

I’m a big proponent of partnerships. The truth is no one can win this industry alone. I think a big part of my role is helping big brands–and ad guys, and content creators, everyone–helping them see the huge benefits that are possible with successful partnerships. It’s more than just receiving ad money and spitting out ads. I don’t just mean superficial business deals–I mean really integrated partnerships. Successfully elevating a brand is elevating your own brand.

Keep reading…

This article was originally posted on VideoInk and is reposted on [a]listdaily via a partnership with the news publication, which is the online video industry’s go-to source for breaking news, features, and industry analysis. Follow VideoInk on Twitter @VideoInkNews, or subscribe via thevideoink.com for the latest news and stories, delivered right to your inbox.

Academy Award Filmmaker & Facebook To Keynote [a]list Video Summit

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Two new keynote speakers and one new fireside chat have been added to the schedule for [a]list video summit taking place on August 19 at W Hollywood Hotel. We’re excited to welcome Academy Award-Winning filmmaker Morgan Neville, Facebook’s Head of Film and Television, Jonathan Murtaugh and Snapchat-focused network Naritiv’s Co-Founder and CEO Dan Altman.

Keynote Interview

Morgan Neville’s film 20 Feet From Stardom premiered at Sundance 2013 and became an instant hit that won the Academy Award for Best Documentary in 2014. His latest film, Best of Enemies, premiered at the 2015 Sundance Film Festival and will be released theatrically by Magnolia Pictures later his summer. Morgan’s talent for capturing authentic moments has attracted companies like Bose and Microsoft seeking to enhance the relatability of their brands with short behind-the-scenes docs and use case studies.

Currently, he is working with Ayzenberg on a documentary series on Microsoft HoloLens, which may be screened now at HoloLens.com {link no longer active} and on the HoloLens YouTube channel. In this keynote interview, Morgan will discuss branded documentary content and how it differs from traditional documentary films — and how it is the same. In a landscape of ever more abbreviated platforms for communication, marketing docs are unabashedly rich, cinematic and traditionally narrative. Ayzenberg VP and Creative Director Matt Bretz will explore Morgan Neville’s insights into where his work fits into a big brand’s communication portfolio.

New Keynote

As Facebook is emerging as a real force in online video and even tougher contender in the battle for digital ad dollars, we are excited to also announce a new keynote with Jonathan Murtaugh, who leads Facebook’s team that works with entertainment marketers to help them successfully leverage both Facebook and Instagram as marketing platforms. He also is the head of Facebook’s Los Angeles office. Prior to Facebook, Jonathan has also served in a range of marketing and brand development roles in sports and manufactured goods.

Fireside Chat

Naritiv’s Co-Founder and CEO Dan Altman joins the summit for a fireside chat. Naritiv is a startup which is helping shape the way brands utilize Snapchat. The company has raised a total of $1.2 million in seed funding so far from the Disney Accelerator, Greylock Partners, Mucker Capital, and more. This fireside chat will focus on what works for brands on Snapchat and how Naritiv was able to leverage native talent to help Disney’s Pretty Little Liars Snapchat account amass more than one million followers on the platform. The chat will be moderated by Jim Louderback, Brand Strategist and Venture Partner at Social Starts.

 

Digital Ad Spending To Reach $60 Billion This Year

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Digital ad spending has reached new heights over the past few years — and it looks like it’s going to get even higher.

A report from eMarketer indicates that digital ad spending in the United States alone will reach $58.61 billion this year, with retailers accounting for 22 percent of the overall figure — a whopping $12.91 billion.

As you can see from the chart above, retail takes the biggest chunk of the picture, although other groups, like automotive, entertainment and financial services, have a small amount as well.

“While digital ad growth remains the story for all industries, it is not ‘one size fits all,’ and nuances among sectors reflect a variety of trends in the ways each industry approaches its market, targets consumers and closes sales,” said Victoria Petrock, principal analyst for eMarketer. “For 2015, mobile, digital video and programmatic buying are the brightest stars in the digital advertising line-up.”

This is true across all markets, particularly entertainment, which is slowly but surely gaining in numbers when it comes to mobile ad spending. It’s likely to reach $1.5 billion, with big spending on new television shows and movies. However, media is showing more spending with $1.73 billion, with focus on general products.

That said, they still can’t come close to retail, with $6.65 billion being spent in that industry alone, followed by financial services ($3.49 billion), automotive ($3.43 billion) and telecommunications ($3.27 billion). The chart above highlights the top groups.

As far as outreach for these ads, a lot of consumers still buy at home, but some retailers prefer to reach them during the purchase process. A number of retail sales occur in-store — a total of 7.2 percent of retail sales for the year – which means an increase in omnichannel efforts to boost mobile ad spending during driving visits.

Programmatic buying also plays a part, with $3.71 billion being spent this year on digital display ads handled programmatically, or nearly 25 percent of the overall $14.88 billion being spent on programmatic buys overall.

When it comes to programmatic digital display ad spending for this year, CPG will account for 14.1 percent of all display dollars for the year, with only retail beating it out, as you can see by the chart above. Even though it’s a smaller portion, entertainment and media take a good chunk of that as well.

According to an advertising executive familiar with the report, CPG brands are “driving the shift into programmatic (and) also demanding better accountability for viewability and measurement.

Finally, there’s digital video, which has its own amount of figures to share. The retail and automotive markets are strong leaders on this chart, with $1.55 and $1.10 billion, respectively. That said, other smaller groups, like financial services, entertainment, and media, have their own place on this list, with a healthy percentage.

More details on the report can be found here.

 

ICN Versus MCN

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Recently, the Influencer Outreach Network, or ION for short, officially launched a new core offering called the ICN or Influencer Channel Network. The ICN is a fully-integrated platform created for marketers looking to improve brand lift and media value when working with influencers.

On Tuesday, ION’s exclusive webinar highlighted what makes an ICN different from what working with an MCN offers and the method behind the ICN. Check out some of the clips from the webinar below.

“A top request we get for brand marketing is with influencers.”

“MCN is general marketing, ICN is a one on one brand relationship.”

“An ICN is a channel owned by you.”

“The first search is taking place on a social channel.”

Contact:

Bil Buckley

bbuckley@ayzenberg.com

626.584.4070 x514

 

The Digital Impact Of The Millennial Mind

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Trying to figure out the spending habits of millennials can be tricky for some marketers. However a new report from Pinpoint Market Research has provided a new study that provides a better idea of where millennial priorities lie, especially when it comes to spending habits and preferences.

AdWeek posted the results from said report, which indicates some interesting statistics when it comes to millennial spending. For one thing, they tend to show caution on more than one occasion. “In fact, their view on personal finances sounds more like the Boomer generation emerging from the Great Depression than the ‘entitlement’ label they keep hearing,” according to the study.

That doesn’t mean they’re too cautious, however. “Despite their frugality, millennials are expected to spend money on lifestyle and entertainment more than prior generations.”

Brand engagement also plays a big part, as the report shows that they become comfortable using a variety of channels for interaction.

A secondary study by Trendera shows that brand interaction is one thing, but the companies interacting with their fans and creating good content for them is another. “Brands need to be able to engage and respond in a matter of minutes, not hours,” says that particular study.

Meanwhile, leading back to the Pinpoint report, millennials using the power of their dollars to convince companies to advance social causes also plays a big part. 43 percent of those surveyed said they had petitioned certain brands to cease certain campaigns, or tie-ins with certain celebrities or shows. “Twenty-somethings understand their power as consumers, as workers and as future leaders,” said the report.

The two combined reports also came together for a large infographic, shown below, that breaks down what devices millennials own, as well as how often they use them. Smartphones and TV’s show popularity, but within different areas. Smartphones, for instance, have high numbers with YouTube video viewership, as well as music and Facebook videos. Over on TV, however, full shows, movies and news coverage have big percentages.

There’s also a breakdown of how many hours millennials spend doing things, including using desktop computers (2.5 hours), watching TV (just over four hours) and using iPhones (2.6 hours). However, the leader here is using a laptop computer, which clocks in at 4.2 hours.

 

ION Introduces The ICN, A Full-Service Platform For Influencer Campaigns

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Today, ION, the influencer agency within Ayzenberg, has launched a new core offering called the ICN, or Influencer Channel Network. The platform leverages the influencer of over 400k creators across channels that together generate billions of views and command millions of subscribers to create unique brand content.

The platform has been in the works for the past 3 years, executing hundreds of influencer campaigns that have delivered up to 8x earned media ROI.

“Our vision right from the beginning was to work with creators and brands to create an environment of innovation and respect while allowing both sides to accelerate each others’ brands without losing their authentic, native voices,” said Eric Ayzenberg, Chief Creative Officer of Ayzenberg and ION.

A major feature of the platform that discovers and connects marketers with all tiers of influencers is the full-service management aspect, with the backing of full reporting and a media delivery guarantee as well as guiding brand strategy and creative.

“Outside of brand lift, we were astonished by the media value opportunity during every campaign, especially with clients who allowed us to integrate it with Ayzenberg’s 360-degree approach. In the next 4 months, we will unveil our new 2.0 front-end design and will start showing more of a behind-the-curtain view of our ICN platform.”

Principals at Ayzenberg, Chris Younger and Vincent Juarez, will be revealing for the first time some of the methods behind the new ICN platform in a webinar on April 21st. For more information and to request an invite, fill out our form.

 

Marketing Tech Acceptance Lags

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A report from eMarketer clearly indicated one big growing trend in marketing — the adaptation to marketing technology, especially with all the tools available. A poll from Econsultancy that posted earlier this year indicated that eight in 10 marketers stated that they would increase digital marketing technology spending for this year, versus seven in 10 from the previous year. That’s a big leap from the two in ten that stated they would stay the course, while only 1 percent intended to spend less.

Still, it’s taking some time for certain companies to adapt to such tools, as the acceptance is going at a lower rate than expected. eMarketer reports that some concerns have arisen with certain marketers when it comes to using technology.

A poll hosted by the site (with help from Accenture) indicates that security concerns are the biggest problem with acceptance, with 51 percent of those polled stating that it could be a problem. In second place, 41 percent felt that keeping pace with digital advancements could be an issue, while finding the right partners to master the technology sat in third place with 37 percent.

Other reasons on the poll why there would be sign for concern include exploiting the potential of digital, internal technical integration issues (which could also tie in with security), the overlapping of technologies becoming difficult to manage and the lack of digital-focused leadership.

So while it appears that there’s no easy solution that can resolve all of these matters, that isn’t stopping some companies from trying to put their best foot forward in finding them anyway, if only to see how effective marketing tech can be in their overall plans. It’s just a matter of “getting over the hump” as it were, solving one problem at a time and creating a marketing plan that could work. Oh, and of course, having the right security in place, since that seems to be the biggest concern.