Sections |
| Title | Starting Page | Number of Pages |
|---|
| Project Manager Florence LE BORGNE | 1 | 1 |
| f. leborgne@idate.org | 1 | 1 |
| M27507 -February 2008 | 1 | 1 |
| Contributors | 2 | 1 |
| Florence LE BORGNE, | 2 | 1 |
| Vincent BONNEAU, | 2 | 1 |
| Sophie GIRIEUD, | 2 | 1 |
| Executive Summary | 3 | 1 |
| Advertising | 3 | 1 |
| Media, Internet, Telecoms: the new battlefield | 3 | 1 |
| Advertising: a complex notion Dynamic sector overall... | 3 | 1 |
| ...fuelled by the growth of new media and of developing markets | 3 | 1 |
| Media versus non-media | 3 | 1 |
| Non-media: still the lion's share | 3 | 1 |
| New media: an extension of non- media? | 4 | 1 |
| Internet: an expanding medium, especially on the advertising front | 4 | 1 |
| By 2009, the internet is expected to be the number three ad medium, behind print and television. Search marketing driving gro | 4 | 1 |
| Performance measurement, seg mentation, targeting and interac tivity: the web's major assets | 5 | 1 |
| ...that is still under-exploited | 5 | 1 |
| Mobile: high potential... | 5 | 1 |
| Wide array of possible ad formats Promotional messaging is still the most common form of mobile advertising, par- Primetime: | 6 | 1 |
| Advertising: vital source of fi nancing for traditional media | 6 | 1 |
| Television: the most effective medium... but the dominion of only a few heavyweights | 6 | 1 |
| The power of mass media | 6 | 1 |
| Traditional media still capable of innovation | 6 | 1 |
| Limits of the ad-funded model | 7 | 1 |
| The development of ad-funded services | 7 | 2 |
| Introduction: a highly coveted advertising market 13 | 9 | 1 |
| 1. Advertising market framework 15 | 9 | 1 |
| 2. Segmentation, targeting, interaction: the internet's assets 33 | 9 | 1 |
| 3. Mobile: a goldmine for advertisers... once the issues are resolved 55 | 9 | 1 |
| 4. Traditional media's adaptation and reaction to changes in the advertising market 77 | 10 | 1 |
| 5. Ad-funded services 103 | 10 | 1 |
| 6. Conclusions: how to share the wealth? 117 | 10 | 1 |
| Tables and figures | 11 | 2 |
| Introduction: a highly coveted advertising market | 13 | 2 |
| 1. Advertising market framework | 15 | 1 |
| 1.1.Scope of the advertising market | 15 | 1 |
| 1.2. Media advertising: definition and properties | 15 | 1 |
| Media | 15 | 1 |
| television: radio: radio press: print display: | 15 | 1 |
| cinema: | 15 | 1 |
| video games: in- Internet: banners, mobile phone: | 15 | 1 |
| 1.3.Non-media advertising: definition and properties | 16 | 1 |
| Direct marketing | 16 | 1 |
| Sales promotions | 16 | 1 |
| Special events | 17 | 1 |
| Public relations | 17 | 1 |
| Print and electronic directories | 17 | 1 |
| 1.4.Goals of advertising | 18 | 1 |
| The AIDA model (St Elmo Lewis, 1898) | 18 | 1 |
| 1.5.Advertising market organisation | 19 | 1 |
| Investors Intermediaries Platforms Targets | 19 | 1 |
| 1.6.Change in media spending worldwide | 19 | 1 |
| 1.6.1. Advertising spending, per medium | 19 | 2 |
| 1.6.2. Ad spending by geographical zone | 21 | 1 |
| 1.6.3. Comparison of the media advertising spending structure in the largest markets | 22 | 1 |
| 1.7.Non-media still accounts for the lion's share of advertiser spending | 23 | 1 |
| 1.8.Are below the line techniques bridging the media divide? | 24 | 1 |
| 1.8.1. New media: extending non-media to the web? | 24 | 1 |
| 1.8.2. Internet: a powerful medium for below the line techniques | 25 | 1 |
| 1.9.Cross-media strategies: advertiser choices | 26 | 1 |
| 1.9.1. Choice of media | 26 | 5 |
| 1.9.2. Are traditional media ad budgets being transferred to new media? | 31 | 1 |
| Budget transfers that are impossible to assess | 31 | 1 |
| New media advertisers | 32 | 1 |
| 2. Segmentation, targeting, interaction: the internet's assets | 33 | 1 |
| 2.1.New forms of advertising made possible by the internet | 34 | 1 |
| 2.1.1. Traditional online advertising formats | 34 | 1 |
| One format per buy cycle | 34 | 1 |
| display and sponsoring (12): | 34 | 1 |
| search marketing (10): | 35 | 1 |
| classified ads (10): | 35 | 1 |
| Display and sponsoring | 36 | 1 |
| A format losing popularity | 36 | 1 |
| Display rates: cost per thousand | 37 | 1 |
| Search marketing | 38 | 1 |
| Principles of search marketing | 39 | 1 |
| Sponsored link payment system | 40 | 1 |
| Efficient ad format... provided the reference is relevant | 40 | 1 |
| Classified ads | 40 | 1 |
| Internet giants positioning themselves in the local ad market | 41 | 1 |
| 2.1.2. The new advertising formats | 41 | 1 |
| Instant messaging: sponsorship and agents | 42 | 1 |
| VoIP: click-to-call | 42 | 1 |
| Local web: couponing and inserts on maps | 43 | 1 |
| Video: sponsoring and product placement | 44 | 1 |
| Web 2.0, social networks and virtual worlds: hosting and sponsorship | 44 | 1 |
| Web 2.0 and RSS: taking advantage of de facto targeting | 45 | 1 |
| 2.2.Greater performance than other media | 45 | 1 |
| 2.2.1. Segmentation and targeting | 46 | 1 |
| Natural segmentation | 46 | 1 |
| Targeting: basic and advanced profiling and contextualisation | 46 | 1 |
| Behavioural targeting | 47 | 1 |
| 2.2.2. Support for the development of interactive advertising | 47 | 1 |
| Video game: a lot of time spent by a well-target section of web users | 47 | 1 |
| Online video faced with a paradox | 48 | 1 |
| Virtual reality: Second Life, a glimpse of the future? | 48 | 2 |
| 2.2.3. A sounding box for advertisers | 50 | 1 |
| Internet users no longer passive consumers... | 50 | 1 |
| ...but opinion shapers | 50 | 2 |
| 2.3.New tools for measuring ad efficiency | 52 | 1 |
| 2.3.1. Measuring performance | 52 | 1 |
| Statistics and tools for advertisers | 52 | 1 |
| Some of the basic tools (in beta) offered by Microsoft's AdCenter, for the search portion: | 52 | 1 |
| Eye tracking | 52 | 1 |
| 2.3.2. New billing systems | 53 | 1 |
| CPA or Cost Per Action | 53 | 1 |
| CPI or Cost Per Influence | 53 | 1 |
| 2.4.Limits of legal issues | 53 | 1 |
| 2.4.1. Invasion of privacy | 53 | 1 |
| Free services vs. invasion of privacy | 53 | 1 |
| Tracking internet users | 54 | 1 |
| 2.4.2. Video advertising and integrity of the work | 54 | 1 |
| 3. Mobile: a goldmine for advertisers... once the issues are resolved | 55 | 1 |
| 3.1.High market potential... | 55 | 1 |
| 3.1.1. A mass market | 55 | 1 |
| 3.1.2. Assets for attracting advertisers and operators | 56 | 1 |
| Close connection with consumers | 56 | 1 |
| Increased opportunities for contact with targets thanks to the mobile's versatility | 56 | 1 |
| Medium of choice for reaching the young crowd | 57 | 1 |
| More affordable rates for advertisers | 57 | 1 |
| A source of financing for content | 57 | 1 |
| 3.2 that is still under-exploited | 57 | 2 |
| 3.3.Required market conditions | 59 | 1 |
| 3.3.1. Increased audience and consumption | 59 | 2 |
| 3.3.2. Building the value chain | 61 | 1 |
| Role of telecom operators | 61 | 2 |
| Revenue sharing | 63 | 1 |
| 3.4.Mobile advertising platforms | 64 | 1 |
| 3.4.1. Mobile messaging | 64 | 1 |
| A new tool for non-media | 64 | 1 |
| Example of non-media advertising on mobile, with Netsize | 65 | 1 |
| Ad-funded SMS/MMS | 65 | 1 |
| Amobee: ad-funded mobile content | 66 | 1 |
| 3.4.2. Mobile internet | 66 | 1 |
| Display | 66 | 1 |
| Example of mobile display ads with ScreenTonic | 67 | 1 |
| Search marketing | 67 | 1 |
| Example of search marketing on mobile: the Google/KDDI partnership | 68 | 1 |
| Click-to-call | 68 | 1 |
| Example of click-to-call with Ingenio | 68 | 1 |
| 3.4.3. Mobile multimedia | 69 | 1 |
| Consumer benefits: price decrease or free services | 70 | 1 |
| Mobile TV and video | 71 | 1 |
| two types of offer: | 71 | 1 |
| Rebroadcasting an identical fixed stream, | 71 | 1 |
| Channels designed specifically for broadcasting on mobile phones, | 71 | 2 |
| Mobile games | 73 | 1 |
| 3.4.4. An array of interactive advertising possibilities | 73 | 4 |
| 4. Traditional media's adaptation and reaction to changes in the advertising market | 77 | 1 |
| 4.1.Advertising: essential tool for financing media | 77 | 2 |
| 4.2.Traditional media's assets | 79 | 1 |
| 4.2.1. Capacity to address a mass market | 80 | 1 |
| Television | 80 | 2 |
| Radio | 82 | 2 |
| Print media | 84 | 1 |
| 4.2.2. Primetime still king | 85 | 3 |
| 4.2.3. Power of the media brand | 88 | 1 |
| The ABC example | 89 | 1 |
| the ABC video player is | 89 | 1 |
| pioneer in catch-up TV, | 89 | 1 |
| ABC.com was the top-ranked TV site in May 2007, | 89 | 1 |
| 4.3.Comparison of the efficiency of TV, radio, print media and internet advertising | 90 | 3 |
| 4.4.Can traditional media reinvent advertising? | 93 | 1 |
| 4.4.1. Towards a revival of TV advertising | 93 | 1 |
| New advertising formats supported by the review of the Television without Frontiers Directive | 94 | 1 |
| Product placement | 94 | 1 |
| Split screen | 94 | 1 |
| Virtual advertising | 95 | 1 |
| Interactive advertising | 95 | 1 |
| Telepromotions | 96 | 1 |
| New initiatives in the are of interactive TV advertising | 96 | 1 |
| Interactive product placement | 97 | 1 |
| Betty, the interactive remote from Swisscom Fixnet | 98 | 1 |
| 4.4.2. Can digital cinema revive interest in in-theatre advertising? | 98 | 2 |
| 4.4.3. Print media's digital revolution | 100 | 1 |
| Display gets personal | 101 | 1 |
| Rise of interactive print media | 101 | 2 |
| 5. Ad-funded services | 103 | 1 |
| 5.1.Principles and objectives | 103 | 1 |
| 5.1.1. Definition of ad-funded | 103 | 1 |
| 5.1.2. Limits of the paid model | 103 | 1 |
| Ad-funded free model more prominent than the paid model | 103 | 1 |
| 5.1.3. The need for growth outlets | 104 | 1 |
| replace services they are usually charged for | 104 | 1 |
| variety of ecosystems. They nevertheless mean an eventual end to the development of players that operate these models, due to | 104 | 1 |
| 5.2.Ad-funded initiatives | 104 | 1 |
| Internet access | 104 | 1 |
| Google Wi-Fi | 105 | 1 |
| Communication services | 105 | 1 |
| Virgin SugarMama | 106 | 1 |
| Video | 106 | 1 |
| ABC's Catch-up TV | 107 | 1 |
| financed by qdvertising | 107 | 1 |
| new forms of online advertising. A | 107 | 1 |
| interactive advertising, | 107 | 1 |
| A survey, whose results were published by ABC in February 2007, revealed that 77% of those polled had used the player because | 108 | 1 |
| increase the popularity of its line-up of shows and maintain its of its player as an effective response to piracy. | 108 | 1 |
| audience, and | 108 | 1 |
| H3G and free VoD | 108 | 1 |
| Video games | 109 | 1 |
| GameJump/GreyStripe | 109 | 1 |
| Music | 110 | 1 |
| SpiralFrog | 110 | 1 |
| Other services | 111 | 1 |
| 5.3.Limits of the ad-funded model | 111 | 1 |
| 5.3.1. Limits of the long tail | 112 | 1 |
| long tail refers to the items in back catalogues | 112 | 1 |
| . Although undeniable, only a handful | 112 | 1 |
| of major players, acting as aggregators, benefit from it. | 112 | 1 |
| Concentration of ad revenue | 112 | 1 |
| But the long tail only manages to address a portion of their web inventory | 112 | 1 |
| cycle, particularly with small and medium-size companies, its impact is not enough to attract major advertisers, particularly | 112 | 1 |
| 5.3.2. Limits of ad-generated ARPU | 113 | 1 |
| The advertising market, especially media but also non-media, therefore relies on a mass market model that makes it possible t | 113 | 1 |
| certain services, it is clearly not possible for some media products to be funded by advertising. A complete migration from a | 113 | 1 |
| for the players, as advertisers are not going to double or triple their marketing budgets overnight. For most players, advert | 114 | 1 |
| 5.4.What services can be ad-funded? | 115 | 1 |
| While advertising does make it possible to build a solid business model, it can only support services with low unit costs. | 115 | 1 |
| Access and communications | 115 | 1 |
| Services whose variable costs are too high, | 115 | 1 |
| Media content | 115 | 2 |
| 6. Conclusions: how to share the wealth? | 117 | 1 |
| 6.1.Challenges along the value chain | 117 | 1 |
| What growth potential for the advertising market? | 117 | 2 |
| Who will benefit from growth of the advertising market? | 119 | 1 |
| Are new media really direct rivals for traditional media? | 120 | 1 |
| Print media | 121 | 1 |
| Radio | 121 | 1 |
| Television | 121 | 1 |
| Display | 122 | 1 |
| How to avoid cannibalising existing revenue sources? | 122 | 1 |
| 6.2.Forecasts | 123 | 1 |
| 6.2.1. The United States | 124 | 1 |
| 6.2.2. Western Europe | 125 | 2 |
| F (O)(R)(U)M | 127 | 1 |
| C (O) N (S) U (L) T (I)(N) G * Market * International | 127 | 1 |
| (R) ESEA (R)(C) H | 127 | 1 |
| Consulting services | 127 | 1 |
| International Benchmark | 127 | 1 |
| Public Policy | 127 | 1 |
| Practices | 127 | 1 |
| Content | 128 | 1 |
| Market reports | 128 | 1 |
| Publications | 128 | 1 |
| Custom | 128 | 1 |
| Networking | 128 | 1 |
| DigiWorld Subscription-Components | 128 | 1 |
| Hotline-Consultant queries On-demand executive workshops - Ad hoc consulting International conference-DigiWorld Executive net | 128 | 1 |
Tables |
| Title | Starting Page | Number of Pages |
|---|
| of contents | 9 | 1 |
