Initial Hypothesis

OMMA Behavioral: “The Hot Zone: The State of the BT Market”

David Hallerman, Senior Analyst, eMarketer

• Spending and where it is going
  • US Internet Advertising Spending - $50B in 2012
  • US BT Ad Spending, $3.5B in 2012
    • As share of spend, 9.6% of total US Internet Advertising Spending in 2012
  • BT will get a 27% budget increase in 2008
• Why dollars don’t deceive - stats for 2008
  • Google net revenue (US Only) 8.4B
  • Retail ecommerce - $161B
  • Internet Advertising - $26.7B
  • BT advertising $925mm
• Forces for change
  • US Marketers say BT among one of the most important tactics (online and offline)
  • BT - top performing tactic for great ROI -outperforming contextual, affiliate, rich media
  • 79% of most ad execs agree “Long tail always existed, technology makes it easier”
  • Advertisers and Agencies prefer specific publishers over networks for targeting

• Less change than you might think
  • In general, 80% of respondents think that data accuracy makes web analytics and ad tracking problematical
    • 40% had concerns with the validity of cookie-based measurement
  • Top three marketing trends in 2007:
    • Marketing Basics
    • SEO
    • Personalization
  • 74% of respondents only put between 1% and 20% to new media properties and experimentation
  • The largest US advertisers still (mainly) put small share of spending online
    • 3.1% share among top 100
    • Top 10 all less than 6%
      1. P&G - 1.1%
      2. AT&T - 5.1%
      3. GM - 3.6%
      4. Time Warner - 2.9%
      5. Verizon - 4.4%
      6. Ford 3.8%
      7. GlaxoSmithKline - 0.6%
      8. Disney - 5.7%
      9. Johnson and Johnson - 1.5%
      10. Unilever - 1.3%

• What people really want
  • People don’t want to be targeted
    • Call people, “people”, not consumers, Internet users, target audience
  • Relevancy - but they’re not crazy about being targeted
  • Privacy - and yet they want personalization
  • Transparency - think of it as marketer ultra-honesty
  • Control - not just in word - and difficult indeed