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Gavin O'Malley, Wednesday, September 30, 2009, 1:58 PM
Blimey! Online Spending Surpasses TV
Guardian et al.
OMFG! Overnight, Internet ad spending has surpassed TV adverting! Ok, it's in the UK, but this still marks a major moment for the "World" Wide Web, and has clear implications for the U.S. market.
"What this switch indicates is that a corner has been turned in consumer and advertising habits, and there's probably no turning back, given the relentless rise of the Web as an entertainment medium," writes Fast Company. "When the same corner is turned in the U.S. advertising business -- which equated to roughly $60 billion in the first six months of 2009 -- it'll have enormous after-effects for the future of TV and even other media like newspapers and magazines."
In the UK, the Web now accounts for 23.5% of all ad money, while TV ad spend accounts for 21.9% of marketing budgets, according to a report by the Internet Advertising Bureau and PricewaterhouseCoopers. TV advertising, meanwhile, fell about 17% year-on-year in the first half, to just over $2.5 billion, according to the report.
UK advertisers spent about $2.8 billion on Internet advertising in the six months to the end of June, a 4.6% year-on-year increase, according to the report. To put this in perspective, in 1998, when the IAB first measured Internet advertising, just over $31 million was spent online.
All told, it took the Internet little more than a decade to become the biggest advertising sector in the UK.
Guy Phillipson, the chief executive of the IAB, reckoned that there is still significant growth potential left in the internet ad market, saying: "We could absolutely see it grow to being a 30% medium [of share of ad spend], to go past ($6.4 billion) to even ($8 billion) annually ... Online display advertising has plenty of room for growth."
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Study: Americans Scorn Behavioral Targeting
New York Times
Sorry, Madison Ave. A new study -- purported to be the first independent, nationally representative telephone survey on behavioral advertising -- finds that about two-thirds of Americans aren't down with advertisers tracking their online activity, and the more consumers learn about what marketers can know about such activity, the more averse they are to the whole practice.
Tailored ads in general did not appeal to 66% of respondents, while an additional 7% said such ads were not O.K. when they were tracked on the site, and another 18% said it was not O.K. when they were tracked via other Web sites, and an additional 20% said it was not O.K. when they were tracked offline. The question is no longer if, but how long before more politicians introduce privacy legislation. Representative Rick Boucher, Democrat of Virginia, says he's already on the case.
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Taking Apple Tablet Seriously
Gizmodo
Sure, it's fun to watch gadget geeks lose it over the likelihood of an Apple tablet, but the success of such a device has serious implications for every publisher, advertiser, and device maker.
Apple is reportedly in talks with several media companies rooted in print, negotiating content for a "new device." Going where no Kindle or E-Ink device has so far gone, Apple's tablet ambitions include having publishers create "hybridized" content that draws from audio, video and interactive graphics in books, magazines and newspapers, where paper layouts would be static. With the help of iTunes, Apple could easily establish itself as key distributor of such next-generation print content.
At least in theory.
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Microsoft Wins Major Patent Case
Seattle P.I.
Ruling that Microsoft didn't infringe a patent held by software maker Uniloc, a district judge just struck down a $388 million award against the software giant. The judgment, signed Tuesday by Judge William Smith of the U.S. District Court for the District of Rhode Island, overturned an April jury verdict that hit Microsoft with the largest patent award on record.
Uniloc USA, and its Singapore-based parent company, filed the lawsuit in Rhode Island in late 2003, alleging Microsoft used its patented technology for software activation. The technology in question included the use of a software activation key to keep users from installing licensed software on more than one computer.
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Microsoft Gets Hit In The Brass
Paid Content
Scoring points for corporate accountability, Microsoft's top brass are taking a direct hit to their compensation packages -- which include base salary, cash incentive payments, and stock awards. The software giant just completed the worst fiscal year in its history, with revenue down 3%. Who took the biggest beatings? CEO Steve Ballmer's total compensation dropped to just over $1.2 million from just over $1.3 million; Entertainment and Devices President Robbie Bach made $6.2 million, compared to $8.3 million the year before; CFO Chris Liddell got $3.5 million, compared to $4.8 million a year earlier.
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Exec: Say Goodbye To All-Access Broadband
GigaOm
In the not-too-distant future, consumers can kiss their all-you-can-eat Internet service goodbye, says Verizon Chief Technology Officer Dick Lynch. Rather, he says wired broadband will likely be sold in packages based on the amount of data a person wants to consume -- much like wireless broadband is sold today.
In comments made to press at the 2009 Fiber to the Home Conference Expo in Houston, Lynch said he wasn't announcing a shift in pricing for Verizon, but that: "We're going to have to consider pricing structures that allow us to sell packages of bytes, and at the end of the day the concept of a flat-rate infinitely expandable service is unachievable."
Read the whole story...
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