In Case You Missed It August
Friday, Aug 31, 2012 10:15 AM EST
By Mike Walter, VP Strategic Services
Millennial Media: Travel vertical up 200% YoY
"Travel was the number three vertical on the Top 10 Global Brand Advertising Vertical ranking," writes the company. "While present among the top verticals throughout 2011, travel advertisers were particularly active in Q1 as they targeted mobile users with post-holiday getaway ideas and travel deals."
• Travel advertisers spent 200% more YoY on the mobile category
• 62% use mobile to sustain an in-market presence
• 57% of travel campaigns, run with Millennial Media, were from Book Agents/Travel sites
• 18% from hotel/resort or cruise lines
Samsung wraps iTunes, Spotify and Pandora into one with new Music Hub service
Samsung offers two versions of its new Music Hub service, a free version that provides a music store, cloud locker and Web player, and a premium version for $9.99 per month that adds a scan and match feature to make your current music catalog available online, streaming radio and on-demand streaming, and customized recommendations that learn your taste and get better the more you use the service.
The Music Hub service will be offered as both a free and premium version.
Music Hub Store (free) allows users to:
• Access millions of songs from the 7digital catalog – which includes music from all four major labels (Sony, EMI, Universal, and Warner), plus select independents– from which users can buy tracks and albums, as well as listen to 30-second previews of all songs
• Store purchased music in the cloud, allowing it to automatically load on all registered Music Hub devices, while still being available on those registered devices locally for offline listening
• Use the Music Hub web player, in addition to the mobile app, with which users can access their music library and the Music Hub catalog/store online at www.musichub.com
Music Hub Premium ($9.99 per month, with a free 30-day trial offered) offers access to all of the free version features
On Tuesday, the company eMarketer released its first projections for ad spending on mobile marketing and found that the total market for advertising in the globally will reach $6.43 billion this year. Advertisers are expected to spend $2.4 billion on mobile advertising in the United States in 2012, up from $1.23 billion in 2011. The company estimates that spending on mobile ads in Japan will reach $1.36 billion in 2012.
The data includes spending on advertising in mobile applications, mobile Web and search, display ads, games and tablets. Data from text message advertising was not included.
Despite the huge gains in the mobile marketplace, spending will still only represent 1 percent of total ad spending worldwide, Mr. Fredricksen said. “It’s going to be a really long time before mobile challenges other mainstay global ad channels.”
Musicians Getting 'More Than Half Of Royalty Income From online Streaming
Many musicians now receive more than half of their royalty income from online services such as Spotify and Deezer, the founder of Adele’s record label has claimed.
“Some of our catalogue artists earn more from streams than downloads of individual tracks [or] any other format,” he said. “If we didn’t have digital we wouldn’t have a business. Physical is still important to us but the lesson we learned over last few years is that you have to strike a balance between giving people what they want on the one hand and actually being a business [and charging for content].”
In June, the UK’s digital music sales overtook those of physical music formats such as CD’s for the first time. Mr Mills’ comments came as Spotify revealed that it paid $180m in royalties to musicians last year and is on track to double that figure to $360m in 2012.
Facebook Reveals 83 Million Fake Accounts
Facebook has revealed that it has some 83 million fake accounts on its site, almost 10 per cent of its user base, in a new filing with the Securities and Exchange Commission (SEC).
The 10-Q filing reveals that the firm is aware of a large portion of accounts plaguing the site that shouldn't be there, with 4.8 per cent of users owning "duplicate accounts", which is not allowed under the terms and conditions of the service.
Lastly, some 1.5 per cent of users, around 10 million accounts, are "undesirable", which refers to user profiles that "are intended to be used for purposes that violate our terms of service, such as spamming", the firm explains in the filing.
Based on the last reported user base of 901 million, there are around 83 million fake accounts in total on the site.
Media Buying Agencies Optimistic About H2 Growth
About 94% of US media buying ad agencies expect business conditions to improve or stay the same in the second half (H2) of 2012, according to August survey results from STRATA. Among the agencies surveyed, roughly 40% project growth, while just 7% forecast a decrease in growth in H2. That 7% is the lowest negative sentiment that STRATA has recorded since launching its survey in 2008. The report suggests that as the advertising industry is commonly thought of as a leading indicator for consumer spending, this result may mean that the economy will improve at a faster rate than projected by economists.
STRATA’s Q2 survey reveals that 52% of agencies saw their business increase in Q2 compared to a year earlier, up 12% from Q1.
Political Ads Up To 40% Of Total –Even as political advertising heightens demand and drives up ad costs, 42% of non-political advertisers claimed they will compete for ad space during the campaign season, while another 40% will use alternative mediums to avoid the political ad costs. Less than a quarter of non-political ad buyers will wait until after the elections to advertise.
• 44% of respondents said they use more than 3 mediums for campaign advertising.
• Spot radio advertising saw a 16% increase in purchase by advertisers, up 80% over last quarter.
• Among social media sites, 87.3% of advertisers use Facebook while second-place Twitter is used by 38%.
• Pinterest was used in 15% of advertising campaigns in the second quarter of 2012, beating out the more established social network Foursquare (7%), and not far behind Google+ (18%).
• Digital advertising is up 26% year-to-date and has seen steady growth in 12 of the last 14 quarters.
• 79% of agencies will focus on online display advertising, which continues to see steady growth, up from 69% in Q2 2010.
• Although digital media spending has grown, 44% of STRATA survey respondents still do not see it outpacing traditional media expenditure.
Streaming Music Boosts Warner’s Bottom Line
Warner Music Group says streaming services contributed 25 percent of the digital revenue that its “recorded music” group saw last quarter. That works out to be about $54 million, or about 8 percent of Warner’s total revenue for the period.
*Warner defines “streaming” revenue as money it gets from subscription services like Spotify and Rhapsody, along with Web radio revenue from the likes of Pandora, Sirius and Clear Channel. It doesn’t include the new cloud/locker services from Apple and Amazon.
Driven By Streaming Services, Digital Music Revenue Will Pass $8.6 Billion In 2012
A new study from Strategy Analytics predicts that online streaming revenues will grow at almost five times the rate of download revenues in 2012. According to Strategy Analytics' latest Global Recorded Music Forecast, streaming revenues will increase 40 percent in 2012 to $1.1 billion while download revenues will increase by 8.5 percent to $3.9 billion. If this prediction holds true, streaming services will take over as the leading revenue growth engine for the music industry in 2012, generating an extra $311 million, which is $8 million more than downloads at $303 million.
Overall digital music spending, including mobile, will increase by 17.8 percent $1.3 billion in 2012 to $8.6 billion compared to a 12.1 percent decline $1.9 billion in physical sales. This means that digital music will increase its share of global recorded music spending to 39 percent in 2012. However, this is still much smaller than physical music sales which will account for 61 percent of spending. Strategy Analytics forecasts that digital spending will overtake physical on a global basis in 2015, However, some countries such as the U.S., Sweden and South Korea, are making the transition to digital taking the lions’ share of spending at a much faster rate#
Looking at U.S. music revenue in Strategy Analytics' study, 2012 U.S. streaming revenues will grow at four times (27.8 percent) the rate of downloads (6.7 percent). This growth means online streaming and downloads account for double the share of music spending in the U.S. than globally (41 percent vs. 22 percent).
Average American Viewer Watched Over 200 Videos in July
First, 184 million U.S. Internet users watched 36.9 billion online content videos in July 2012. This is up from 180 million in July 2011, 178 million in July 2010, 158 million in July 2009, 142 million in July 2008, and 134 million in July 2007. So, over the past five years, the number of Americans watching online video has increased 37.3 percent.
Second, the duration of the average online content video was 6.7 minutes in July 2012, which is up from was 5.3 minutes in July 2011, 4.8 minutes in July 2010, 3.7 minutes in July 2009, 2.9 minutes in July 2008, and 2.7 minutes in July 2007. So, over the past five years, the duration of the average online content video has increased 148.1 percent.
Third, the average American viewer watched online videos for 1,336.8 minutes (22.3 hours) in July 2012. This is up from 1,107.0 minutes (18.5 hours) of video viewing in July 2011, 882.0 minutes (14.7 hours) in July 2010, 500 minutes (8.3 hours) in July 2009, 235 minutes (3.9 hours) in July 2008, and 181 minutes (3 hours) in July 2007. So, over the past five years, the time spent viewing online videos has increased 638.6 percent.
In other words, there are nine YouTube Partner channels with larger audiences than the top ranked program on cable TV and five YouTube Partner channels with larger audiences than the top ranked program on network TV.
Spotify To Launch In Canada As Its Net Losses Grow
Spotify's popular music-streaming service will soon launch in Canada
The report also showed that as Spotify has expanded, its net losses have grown. The WSJ reports that Spotify's net loss in 2011 was approximately $56.6 million, up from loss of roughly $35.7 million in 2010. Spotify's owners have taken the hit for its losses and in the report the company said it "cannot exclude the need or desire to raise more funds in the future," noting that the source of any more capital would have to be through equity.
Spotify's revenue has also grown, as revenue reached approximately $235.4 million in 2011, up from $92.6 million a year before. The revenue increase was attributed to growth in Spotify's music subscriptions, which brought in $196.7 million in 2011. However, ad sales growth has been slower, from under $26.5 million in 2010 to $34.6 million last year. By the end of 2011, Spotify had 32.8 million registered users.