Online Ad Spending To Follow Video and Social Networking
According to a new report on the Global Online Media Landscape by The Nielsen Company Online, engagement by Internet users is deepening, in part a result of a shift toward video content and social networking as popular online subcategories.Highlights of the report include:
- The number of American users frequenting online video destinations has climbed 339% since 2003
- Time spent on video sites has shot up almost 2,000% over the same period
- In the last year, unique viewers of online video grew 10%, the number of streams grew 41%, the streams per user grew 27% and the total minutes engaged with online video grew 71%
- There are 87% more online social media users now than in 2003, with 883% more time devoted to those sites.
- In the last year, time spent on social networking sites has surged 73%
- In February, social network usage exceeded Web-based e-mail usage for the first time.
Charles Buchwalter, SVP, Research and Analytics, Nielsen Online, says “The Internet remains a place of continuing innovation, with users finding new ways to integrate online usage into their daily lives… ”
Since 2003, interests of the average online user have shifted significantly from portal-oriented browsing sites such as Shopping Directories and Guides and Internet Tools/Web Services, to video and social networking sites that have moved to the forefront, becoming the two fastest growing categories in 2009.
| Audience Utilities, Video and Social Media (Percent Change by Segment) | ||
| Segment | 2/03 to 2/09 | 2/08 to 2/09 |
| Video |
339% |
8% |
| Member Communities |
87% |
11% |
| Search |
50% |
4% |
|
76% |
3% |
|
| Nielsen NetView, Combined Home and Work, April 2009 | ||
With the global recession in full swing, says the report, online display advertising has plateaued at 20% of total online ad spend in the U.S.. Spending on online display advertising by financial services, automobile and retail companies has declined steeply. On the other hand, several key, heavy ad-spending industries such as healthcare, consumer products and telecommunications appear to be moving even more spending online.
| Share of Online Image-Based Advertising Impressions by Industry | ||
| Industry | 2008 | Jan/Feb 2009 |
| Financial Services |
24% |
17% |
| Telecommunications |
13 |
14 |
| Retail Goods & Services |
13 |
12 |
| Health |
4 |
9 |
| Consumer Goods |
7 |
8 |
| Automotive |
6 |
4 |
| Source: Nielsen AdRelevance, US, April 2009 (Percentages Rounded) | ||
The longer-term prospects for global online advertising continue to be brighter. Projecting, Nielsen reported:
- Led by social media, search and video, the Internet’s share of total ad spend will continue its steady upward trend as global economies emerge from the current recession
- Given the increased focus on digital marketing by leading packaged goods companies, the Internet’s share of commerce will continue to rise
- In the age of Twitter, feedback barriers have all but disappeared, creating a near friction-free environment for playing back brand experience, campaign reactions or brand events. Recent public cases show that marketers must be quick to react to these channels of instant feedback
- 30% of U.S. mobile subscribers recalled seeing some form of advertising while using their mobile phones, up from 18% one year prior
To download Nielsen’s full report on the global online landscape found on The Nielsen Wire, please visit here. This post was adapted from this post on MediaPost