IAB Tabvertising, task force-reliable?
Newspapers seem to avoid interactive conferences
A few weeks ago, folks representing some of the largest and most interesting media, advertising and marketing companies gathered at a couple of interactive media conferences in New York City.
The Interactive Advertising Bureau held it’s annual MIXX conference, and MediaPost Communications ran its OMMA Global event during the same two days in late September. Even though some the nation’s largest advertisers, advertising companies and Internet companies are represented at gatherings like these, newspaper folks seem to shy away.
While I was online director for the Pittsburgh Tribune-Review, I was lucky enough to attend at OMMA conference, and I also made it to an ad:tech conference, another popular gathering for those who work and innovate in interactive media. Those two conferences were great, and opened my eyes in a few ways about what was happening in the wide world of interactive media — beyond newspapers.
At the time, and I’m afraid still to a large extent, newspapers companies saw themselves as a universe separate from online. Oh, sure, they dabbled in the online stuff, but they were newspaper companies, not interactive media companies.
Most newspapers now have Web sites, and most of the them have some form of advertising. The Interactive Advertising Bureau is the leading organization for online advertising standards and practices. No doubt it will play a key role in the coming debate over behavioral targeting. And yet, very few newspaper companies are members of the IAB. A look through its membership uncovered four — Cox Newspapers Inc., New York Times Digital, Wall Street Journal Digital Network and Washington Post Digital. The Newspaper Association of America is an associate member.
Only Hearst , the Los Angeles Times and the New York Times were listed among attendees at OMMA Global last year.
Is it any wonder that the interactive world is leaving newspaper companies in the dust? To play and compete in the interactive world — which is the dominant medium for information — a business needs to know the players, know the innovators and the advertisers who love interactive.
The rules and tools of the interactive game are all being discussed at these conferences and in a magnitude the NAA can’t possibly provide at its annual gatherings.
The newspaper industry’s leaders can’t just “talk amongst themselves” to figure out how to compete in the interactive world. They need to dive into it, and drag their old world along for the swim.
Credit crisis taking a bite: analysts forecast lower ad revenue
Two days ago we cited a glowing report from the Interactive Advertising Bureau on ad spend for the first half of 2008. Now the gloom and doom is starting to sink in. Several analysts are lowering their estimates for online ad revenues ahead of the Q3 earning report period, according to PaidContent.
The good news (sort of): offline looks worse than online and indeed some Web-based companies could benefit as more firms look to cheaper and more targeted online ads.
First up is USB Internet analyst Ben Schachter who, while not giving specific numbers, says that while the first two months of Q3 “were decent,” September has proved difficult. While all companies are being negatively impacted to some extent, Schachter has faith in Google because of its dependence on search which remains more attractive to marketers than display.
Over at Wachovia, media analyst John Janedis sees total U.S.. ad spend slipping 0.8 percent this year and next year. Janedis had previously called for growth of 1.2 percent in 2008 and 1.5 percent in 2009. Online has been revised downward as well: 2009 spending will only grow 10 percent rather than 15 percent according to Wachovia.
It’s not much better at Deutsche Bank. Analyst Doug Mitchelson, who covers entertainment companies, slashed his ad revenue forecast for the sector by $502 million for 2008 (down to $44.1 billion) and by $2.36 billion for 2009 ($42.37 billion). Mitchelson points out that entertainment derived 29 percent of its revenue from ads in 2008. Nevertheless, Mitchelson says that entertainment companies in general should be able to manage the global credit crisis better than other firms.
The full report including charts here.
Ad spend up in H108…but where will the second half of the year find us?
The report was released yesterday but it already seems out of touch with the reality on Wall Street. The Interactive Advertising Bureau and PricewaterhouseCoopers released figures on ad spending for the first six months of 2008 and the results were positively glowing.
For H108, ad revenues reached $11.5 billion, a 15.2 percent increase over the nearly $10 billion during the same period last year. That was a gain of 26.6 percent over the first half of 2006.
Dig a little deeper and all is not rosy: Although Q2 grew 12.8 percent year-over-year, it showed a slight sequential decline of 0.3 percent from Q1.
Search ads did better than display. Revenue for search totaled almost $5.1 billion for the first six months of 2008. That’s a gain of 24 percent over last year’s $4.1 billion, although not as strong as last year when search ads were up 41 percent.
Display ads were strong though not quite as impressive: H108 saw revenue up to $3.8 billion from $3.2 billion in the same period in 2007, a 19 percent increase.
Performance based deals edged out CPM in 2008. The performance model grew 50 percent in the first half of 2008 while CPM deals’ growth declined slightly with 44 percent gains this year compared to a 45 percent increase the year.
What remains to be seen, of course, is how online advertising will fare in the second of half of 2008 when spending, due to the financials markets, is expected to be down.
The full report with graphs can be found here.

