Social Media Ad Spending Lags
Social media use is exploding, but ad spending in the sector continues to be a blip on the radar for most brands. Razorfish, one of the largest digital ad spenders, compiled data on its 2009 digital ad spending. It found that social media display advertising made up just 3 percent of its clients’ budgets. Non-display in social media accounted for another 1 percent. The figures pale in comparison to the time spent online. According to comScore, U.S. Internet users spent 11 percent of their time online in 2011 on social media sites. The spending figures reflect that, all the chatter about Facebook, Twitter and iPhone notwithstanding, online media is dominated by traditional vehicles: vertical sites, ad networks, portals and search accounted for 88 percent of buys. Vertical sites got the biggest share of spending, 31 percent. Search was next with a 25 percent share and ad networks received 20 percent. Other emerging media remain blips: mobile accounted for just 2 percent of Razorfish’s spending.
Read More: BrandWeek
If 6 Turned Out To Be 9
It’s no secret that Google has been shopping for a so-called Demand Side Platform (DSP) for some time. With the AdMob acquisition signed off by the Feds, the rumors are that Google will acquire Invite Media (http://mediamemo.allthingsd.com/20100523/with-admob-out-of-the-way-is-google-set-to-buy-invite-media/), a DSP known primarily for a user interface that enables audience buying across exchanges. This move seems sensible enough as a way for Google to shore up its exchange user interface, which even Google concedes needs more care and feeding. But would it undermine the core value proposition of the DSP? A history lesson: before DSPs, online display advertisers have had to rely on the sellers of media to target, price, and optimize media. That’s why agencies have become so reliant on ad networks. And that’s why their clients increasingly are questioning the value added and the fees paid for media planning in the digital era. Enter the DSP. Using a DSP like DataXu, an agency and its client can for the first time effectively crunch their own proprietary data, develop their own campaign algorithms, and seek price/performance optimality across multiple sellers, effectively breaking the reliance on the seller to deliver all the value.
Read More: Dataxu.com
Razorfish Outlook on Ad Exchanges
Razorfish has released its 2010 Outlook Report and includes a section on “How The Ad Exchange Ecosystem Works” with an abbreviated ecosystem map and a prediction: “While there are no hard industry estimates of the size of the ad exchange market, industry observers suggest agency trading desks, which execute deals on ad exchanges, will control $500 million in media spending in 2010.”
Read More: RazorfishOutlook.com
