Global Digital Media - Advertising and Marketing in the Digital Age
The advertising scene has undergone radical change and is still changing. With profits down between 5% and 10% on an annual basis, the performance of the traditional advertising market is under constant pressure. Data analytics is exposing the weakness of these traditional advertising business models and, like all of the other sectors affected by the digital economy, this means that these business models need to change.
As they become more aware of the power of big data, advertisers are demanding hard, quantitative data on their campaigns. Increasingly, campaigns are now linked to outcomes. These are predetermined and tested against the results, and payments are made to advertising agencies based on the success of these campaigns, which are becoming far more cost-effective.
Social media companies are becoming increasingly important website publishers. Compared to commercial broadcasters, these companies have one important difference they have valuable data on their consumers, which they are monetising in a big way. Although consumers are happy to share data with companies operating in the digital economy, they are most unhappy when these companies disrespect their wishes for privacy. On the other hand, many companies involved in big data analytics are disappointed with the results. So a better system could be a win-win situation for both the demand and the supply side.
While Facebook has yet to reap such high advertising revenues as Google, it is closing the gap and increasing its market share.
Facebook is increasing its share of the mobile advertising market.
Google is still the undisputed leader in the search-engine advertising market, with China-based Baidu occupying a distant second place.
In 2015, Twitter is likely to overtake Yahoo in the US digital display ad market. In the worldwide digital display ad market, Yahoo will probably be overtaken by both Twitter and Baidu.
Click fraud has become a growing concern for advertisers and website publishers, with bots accounting for a large percentage of display and video ad viewings. Advertisers have started to fight back, demanding to be shown proof that their ads have been seen by real people.
Companies mentioned in this report:
Google; Hulu; Yahoo; Microsoft; Facebook; Amazon; Baidu; Sohu.
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