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Putting Digital In Focus: 2012Charlie D. RayBroad Street Interactive@CharlieDR@BroadST_ATX                                ...
Change, Change and Change2011 marked an exciting year for the digital media industry and  signaled an even more momentous ...
Charlie D. Ray, Broad Street Interactive |charlie@broadstreetinteractive.com | @CharlieDR |                   @BroadST_ATX
Charlie D. Ray, Broad Street Interactive |charlie@broadstreetinteractive.com | @CharlieDR |                   @BroadST_ATX
Charlie D. Ray, Broad Street Interactive |charlie@broadstreetinteractive.com | @CharlieDR |                   @BroadST_ATX
Charlie D. Ray, Broad Street Interactive |charlie@broadstreetinteractive.com | @CharlieDR |                   @BroadST_ATX
The democratization of information• The adoption of broadband internet access slowed  dramatically over the last year. Two...
Focus on the Facts                                              • Facebook-led social                                     ...
Media Migration        Charlie D. Ray, Broad Street Interactive |  charlie@broadstreetinteractive.com | @CharlieDR |      ...
People and their gadgets                                                 Mobile phone penetration                         ...
Online Activities         Charlie D. Ray, Broad Street Interactive |   charlie@broadstreetinteractive.com | @CharlieDR |  ...
Online Activities         Charlie D. Ray, Broad Street Interactive |   charlie@broadstreetinteractive.com | @CharlieDR |  ...
Digital Omnivores•   Facebook-led social media is redefining communication in    the digital and physical worlds. Social m...
Search: Feeding the Monster• Google owns two-thirds of the search market, but Bing has  captured 15% of the market on its ...
Charlie D. Ray, Broad Street Interactive |charlie@broadstreetinteractive.com | @CharlieDR |                   @BroadST_ATX
Charlie D. Ray, Broad Street Interactive |charlie@broadstreetinteractive.com | @CharlieDR |                   @BroadST_ATX
Online Video Signals “Sea Change”• The increasing availability and adoption of long-form video  content has driven a drama...
Charlie D. Ray, Broad Street Interactive |charlie@broadstreetinteractive.com | @CharlieDR |                   @BroadST_ATX
Charlie D. Ray, Broad Street Interactive |charlie@broadstreetinteractive.com | @CharlieDR |                   @BroadST_ATX
Charlie D. Ray, Broad Street Interactive |charlie@broadstreetinteractive.com | @CharlieDR |                   @BroadST_ATX
Smartphones and Tablets fuel the rise     of the “Digital Omnivore”• The rise of smartphones and tablets has  drastically ...
Smartphones and Tablets fuel the rise     of the “Digital Omnivore”• In 2011, the majority of all mobile phone owners  con...
Smartphone Penetration• About 234 million Americans over the age of 13 used  cellphones in January, meaning that the penet...
Charlie D. Ray, Broad Street Interactive |charlie@broadstreetinteractive.com | @CharlieDR |                   @BroadST_ATX
Charlie D. Ray, Broad Street Interactive |charlie@broadstreetinteractive.com | @CharlieDR |                   @BroadST_ATX
The Tablet Explosion• In 2011 consumers had the choice of more than one  hundred distinct tablet devices with several high...
Charlie D. Ray, Broad Street Interactive |charlie@broadstreetinteractive.com | @CharlieDR |                   @BroadST_ATX
E-Commerce is Bigger Than Ever• Despite the backdrop of continued economic  uncertainty, 2011 was a strong year for retail...
E-Commerce is Bigger Than Ever• Total U.S. retail and travel-related e-commerce  reached $256 billion in 2011, up 12 perce...
Charlie D. Ray, Broad Street Interactive |charlie@broadstreetinteractive.com | @CharlieDR |                   @BroadST_ATX
Charlie D. Ray, Broad Street Interactive |charlie@broadstreetinteractive.com | @CharlieDR |                   @BroadST_ATX
Charlie D. Ray, Broad Street Interactive |charlie@broadstreetinteractive.com | @CharlieDR |                   @BroadST_ATX
What does all that mean for digital          advertising?  Or better yet, advertising in general?                   Charli...
Shifting Budgets• Advertising budgets are shifting online.• Increased digital investments mean  advertisers are focusing o...
Print Versus Online• Online ad spend is projected to outpace print  budgets for the first time this year.• TV, Outdoor and...
Print Versus Online• Digital will be the primary beneficiary of the shift in  marketer dollars, but growth will not bypass...
Charlie D. Ray, Broad Street Interactive |charlie@broadstreetinteractive.com | @CharlieDR |                   @BroadST_ATX
Charlie D. Ray, Broad Street Interactive |charlie@broadstreetinteractive.com | @CharlieDR |                   @BroadST_ATX
Charlie D. Ray, Broad Street Interactive |charlie@broadstreetinteractive.com | @CharlieDR |                   @BroadST_ATX
Charlie D. Ray, Broad Street Interactive |charlie@broadstreetinteractive.com | @CharlieDR |                   @BroadST_ATX
Charlie D. Ray, Broad Street Interactive |charlie@broadstreetinteractive.com | @CharlieDR |                   @BroadST_ATX
Advertising Industry Chaos Ensues• Advertisers are finding that seeding catchy videos on  viral channels like YouTube and ...
It’s a mixed up world…           is an ad network            is an ad portal and tech platform            is an ad agency ...
Who’s out to eat your lunch?              Charlie D. Ray, Broad Street Interactive |        charlie@broadstreetinteractive...
Looking at 2012•   E-Commerce Explosion: After two years of sluggish online spending, retail e-    commerce bounced back t...
Looking at 2012• Social: Social media will continue to see growth in  engagement and brands will be forced to listen to  c...
Looking at 2012• Search: Search continues to show significant growth. Users  will conduct more searches requiring search e...
The “Mad Men” are Dead“The old-fashioned supertanker model is already dead. Clients want smaller    collections of people ...
How do you cope?         Charlie D. Ray, Broad Street Interactive |   charlie@broadstreetinteractive.com | @CharlieDR |   ...
No, how you really cope…Change, Change or Change. We are smart adaptable  people faced with enormous changes in our indust...
Thank you!Charlie D. RayBroad Street Interactivecharlie@broadstreetinteractive.com                               facebook....
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Digital focus 2012: Media Consumption and Trends

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Taking a look at the latest trends and research provided by comScore, eMarketer and Pew Internet Research to identify media consumption habits and look at digital advertising trends for 2012.

Charlie Ray
Principal, Broad Street Interactive

Digital focus 2012: Media Consumption and Trends

  1. 1. Putting Digital In Focus: 2012Charlie D. RayBroad Street Interactive@CharlieDR@BroadST_ATX Charlie D. Ray, Broad Street Interactive | charlie@broadstreetinteractive.com | @CharlieDR | @BroadST_ATX
  2. 2. Change, Change and Change2011 marked an exciting year for the digital media industry and signaled an even more momentous year ahead. Amidst this constantly evolving landscape, successful digital strategies require insights into not only the current environment, but also into what trends will shape the future for digital consumers.With so much change in media consumption habits, new technology and segmentation it is important to take a look at how this evolution affects marketers, advertisers and their agencies. Charlie D. Ray, Broad Street Interactive | charlie@broadstreetinteractive.com | @CharlieDR | @BroadST_ATX
  3. 3. Charlie D. Ray, Broad Street Interactive |charlie@broadstreetinteractive.com | @CharlieDR | @BroadST_ATX
  4. 4. Charlie D. Ray, Broad Street Interactive |charlie@broadstreetinteractive.com | @CharlieDR | @BroadST_ATX
  5. 5. Charlie D. Ray, Broad Street Interactive |charlie@broadstreetinteractive.com | @CharlieDR | @BroadST_ATX
  6. 6. Charlie D. Ray, Broad Street Interactive |charlie@broadstreetinteractive.com | @CharlieDR | @BroadST_ATX
  7. 7. The democratization of information• The adoption of broadband internet access slowed dramatically over the last year. Two-thirds of American adults (66%) now have a broadband internet connection at home, a figure that is little changed from the 63% with a high-speed home connection at a similar point in 2009.• Most demographic groups experienced flat-to- modest broadband adoption growth over the last year. The notable exception to this trend came among African-Americans, who experienced 22% year-over-year broadband adoption growth. Charlie D. Ray, Broad Street Interactive | charlie@broadstreetinteractive.com | @CharlieDR | @BroadST_ATX
  8. 8. Focus on the Facts • Facebook-led social media is redefining communication • Search continues to grow • Online video signals a “sea change” in video consumption • Smartphones and Tablets fuel the rise of the “Digital Omnivore” Charlie D. Ray, Broad Street Interactive | charlie@broadstreetinteractive.com | @CharlieDR | @BroadST_ATX
  9. 9. Media Migration Charlie D. Ray, Broad Street Interactive | charlie@broadstreetinteractive.com | @CharlieDR | @BroadST_ATX
  10. 10. People and their gadgets Mobile phone penetration continues to shift the entire digital advertising ecosystem Tablets saw explosive growth at the end of 2011. Charlie D. Ray, Broad Street Interactive | charlie@broadstreetinteractive.com | @CharlieDR | @BroadST_ATX
  11. 11. Online Activities Charlie D. Ray, Broad Street Interactive | charlie@broadstreetinteractive.com | @CharlieDR | @BroadST_ATX
  12. 12. Online Activities Charlie D. Ray, Broad Street Interactive | charlie@broadstreetinteractive.com | @CharlieDR | @BroadST_ATX
  13. 13. Digital Omnivores• Facebook-led social media is redefining communication in the digital and physical worlds. Social media accounted for 16.6% of all online minutes at the end of 2011.• If current trends continue, Social Networking will soon declare its supremacy over Portals. The Entertainment category, which includes TV and music content, video sites and entertainment news, is also gaining market share and currently accounts for 13 percent of time spent. Meanwhile, web-based email’s market share slipped below 10 percent for the first time. Charlie D. Ray, Broad Street Interactive | charlie@broadstreetinteractive.com | @CharlieDR | @BroadST_ATX
  14. 14. Search: Feeding the Monster• Google owns two-thirds of the search market, but Bing has captured 15% of the market on its own and surpassed Yahoo! this year in market share.• Despite the U.S. search market’s overall maturity, it continued to grow at double-digit rates, posting an 11-percent increase in 2011.• With the U.S. being a very mature market for search, continued volume increases will rely on driving a greater number of searches per searcher, which ultimately depends on delivering more value to the end user with high quality search results. Charlie D. Ray, Broad Street Interactive | charlie@broadstreetinteractive.com | @CharlieDR | @BroadST_ATX
  15. 15. Charlie D. Ray, Broad Street Interactive |charlie@broadstreetinteractive.com | @CharlieDR | @BroadST_ATX
  16. 16. Charlie D. Ray, Broad Street Interactive |charlie@broadstreetinteractive.com | @CharlieDR | @BroadST_ATX
  17. 17. Online Video Signals “Sea Change”• The increasing availability and adoption of long-form video content has driven a dramatic increase in video viewing as consumers exercise their freedom to watch available content however, whenever and wherever they want.• More than 100 million Americans watched online video content on an average day to close out 2011, representing a 43-percent increase versus year ago. In addition to more daily viewers, the number of video streams jumped 44 percent to 43.5 billion in December 2011. Charlie D. Ray, Broad Street Interactive | charlie@broadstreetinteractive.com | @CharlieDR | @BroadST_ATX
  18. 18. Charlie D. Ray, Broad Street Interactive |charlie@broadstreetinteractive.com | @CharlieDR | @BroadST_ATX
  19. 19. Charlie D. Ray, Broad Street Interactive |charlie@broadstreetinteractive.com | @CharlieDR | @BroadST_ATX
  20. 20. Charlie D. Ray, Broad Street Interactive |charlie@broadstreetinteractive.com | @CharlieDR | @BroadST_ATX
  21. 21. Smartphones and Tablets fuel the rise of the “Digital Omnivore”• The rise of smartphones and tablets has drastically altered consumers’ digital media consumption – changing the way people access content, where they consume it and the frequency of consumption. This evolution of digital device interaction has given rise to an age of ‘digital omnivores’ – consumers who access content through several touch points during the course of their daily digital lives. Charlie D. Ray, Broad Street Interactive | charlie@broadstreetinteractive.com | @CharlieDR | @BroadST_ATX
  22. 22. Smartphones and Tablets fuel the rise of the “Digital Omnivore”• In 2011, the majority of all mobile phone owners consumed mobile media on their device, marking an important milestone in the evolution of mobile from primarily a communication device to a content consumption tool. At the end of 2011, more than 8 percent of all digital traffic was consumed beyond the ‘classic web’ across devices such as smartphones and tablets.• In December 2011, 28.5 million mobile users accessed online retail content on their mobile devices, up 87 percent from the previous year Charlie D. Ray, Broad Street Interactive | charlie@broadstreetinteractive.com | @CharlieDR | @BroadST_ATX
  23. 23. Smartphone Penetration• About 234 million Americans over the age of 13 used cellphones in January, meaning that the penetration for smartphones in the U.S. is around 43.3%.• As has been the current trend, both Google and Apple’s share of the smartphone market grew at RIM’s expense. Google’s Android platform now claims 48.6% of the market and Apple’s iOS has 29.5%, a jump of 2.3% and 1.3%, respectively, over October. RIM’s share is now 15.2%, a 2% drop. Microsoft’s share also fell 1% to 4.4%. Charlie D. Ray, Broad Street Interactive | charlie@broadstreetinteractive.com | @CharlieDR | @BroadST_ATX
  24. 24. Charlie D. Ray, Broad Street Interactive |charlie@broadstreetinteractive.com | @CharlieDR | @BroadST_ATX
  25. 25. Charlie D. Ray, Broad Street Interactive |charlie@broadstreetinteractive.com | @CharlieDR | @BroadST_ATX
  26. 26. The Tablet Explosion• In 2011 consumers had the choice of more than one hundred distinct tablet devices with several highly- publicized releases including the iPad2, Kindle Fire, NOOK Tablet and Samsung Galaxy S fueling market adoption. To put the rapid uptake of tablets in perspective, it took seven years to reach nearly 40 million smartphones compared to less than two years to reach nearly 40 million tablets, demonstrating the vast appeal of these devices and consumers’ desire for connection. Charlie D. Ray, Broad Street Interactive | charlie@broadstreetinteractive.com | @CharlieDR | @BroadST_ATX
  27. 27. Charlie D. Ray, Broad Street Interactive |charlie@broadstreetinteractive.com | @CharlieDR | @BroadST_ATX
  28. 28. E-Commerce is Bigger Than Ever• Despite the backdrop of continued economic uncertainty, 2011 was a strong year for retail e- commerce.• Throughout the year, growth rates versus the prior year remained in double-digits to significantly outpace growth at brick-and-mortar retail.• Consumers remained cautious spenders overall, but increasingly turned to digital commerce due to two prevailing factors: price and convenience. Charlie D. Ray, Broad Street Interactive | charlie@broadstreetinteractive.com | @CharlieDR | @BroadST_ATX
  29. 29. E-Commerce is Bigger Than Ever• Total U.S. retail and travel-related e-commerce reached $256 billion in 2011, up 12 percent from 2010.• Travel e-commerce spending grew 11 percent to $94.5 billion, while retail (non-travel) e-commerce spending jumped 13 percent to $161.5 billion for the year.• Not surprisingly, November ($17.2 billion) and December ($20.0 billion) were the heaviest online spending months of the year. 2011 saw ecommerce’s first billion dollar days. Charlie D. Ray, Broad Street Interactive | charlie@broadstreetinteractive.com | @CharlieDR | @BroadST_ATX
  30. 30. Charlie D. Ray, Broad Street Interactive |charlie@broadstreetinteractive.com | @CharlieDR | @BroadST_ATX
  31. 31. Charlie D. Ray, Broad Street Interactive |charlie@broadstreetinteractive.com | @CharlieDR | @BroadST_ATX
  32. 32. Charlie D. Ray, Broad Street Interactive |charlie@broadstreetinteractive.com | @CharlieDR | @BroadST_ATX
  33. 33. What does all that mean for digital advertising? Or better yet, advertising in general? Charlie D. Ray, Broad Street Interactive | charlie@broadstreetinteractive.com | @CharlieDR | @BroadST_ATX
  34. 34. Shifting Budgets• Advertising budgets are shifting online.• Increased digital investments mean advertisers are focusing on ROI and engagement more than impressions and clicks.• Although, the number of advertisers delivering more than one billion ad impressions grew by 38% in Q4 2011. Charlie D. Ray, Broad Street Interactive | charlie@broadstreetinteractive.com | @CharlieDR | @BroadST_ATX
  35. 35. Print Versus Online• Online ad spend is projected to outpace print budgets for the first time this year.• TV, Outdoor and Radio all project modest increases in ad spend for 2012.• Publishers struggle to replace lost print ad revenue with digital spend. Charlie D. Ray, Broad Street Interactive | charlie@broadstreetinteractive.com | @CharlieDR | @BroadST_ATX
  36. 36. Print Versus Online• Digital will be the primary beneficiary of the shift in marketer dollars, but growth will not bypass traditional media completely.• While print and directories will see declines and radio and outdoor only modest gains, TV ad spending will remain robust, at $64.78 billion in 2012. It will rise to $72.05 billion by 2016, roughly in line with the growth rate for total media ad spending.• But in the face of steeper increases in digital, TV’s share of the total will experience a slight decline. Charlie D. Ray, Broad Street Interactive | charlie@broadstreetinteractive.com | @CharlieDR | @BroadST_ATX
  37. 37. Charlie D. Ray, Broad Street Interactive |charlie@broadstreetinteractive.com | @CharlieDR | @BroadST_ATX
  38. 38. Charlie D. Ray, Broad Street Interactive |charlie@broadstreetinteractive.com | @CharlieDR | @BroadST_ATX
  39. 39. Charlie D. Ray, Broad Street Interactive |charlie@broadstreetinteractive.com | @CharlieDR | @BroadST_ATX
  40. 40. Charlie D. Ray, Broad Street Interactive |charlie@broadstreetinteractive.com | @CharlieDR | @BroadST_ATX
  41. 41. Charlie D. Ray, Broad Street Interactive |charlie@broadstreetinteractive.com | @CharlieDR | @BroadST_ATX
  42. 42. Advertising Industry Chaos Ensues• Advertisers are finding that seeding catchy videos on viral channels like YouTube and Facebook can be a more cost-effective way to project brand awareness than spending millions of dollars on TV, radio and online ads.• Others are growing their audiences through custom games, mobile apps or user-generated content promotions. The goal now is to attract rather than distract, to engage rather than intrude. Charlie D. Ray, Broad Street Interactive | charlie@broadstreetinteractive.com | @CharlieDR | @BroadST_ATX
  43. 43. It’s a mixed up world… is an ad network is an ad portal and tech platform is an ad agency is an ad analytics company is a data company is all of the above Charlie D. Ray, Broad Street Interactive | charlie@broadstreetinteractive.com | @CharlieDR | @BroadST_ATX
  44. 44. Who’s out to eat your lunch? Charlie D. Ray, Broad Street Interactive | charlie@broadstreetinteractive.com | @CharlieDR | @BroadST_ATX
  45. 45. Looking at 2012• E-Commerce Explosion: After two years of sluggish online spending, retail e- commerce bounced back to double-digit growth rates in 2010 and 2011. The penetration of mobile will have brick and mortar retailers scrambling to get customers in the store and not lose them to real-time comparison shopping.• Daily Deals Sites Take Off, Then Stabilize: Is daily deal fatigue becoming a factor? It is possible that some consumers have increasingly begun to tune out the onslaught of daily emails. Improved targeting mechanisms for consumers and better deal optimization tools for merchants will help ensure a strong value proposition for all constituents, as 2012 will mark a year of maturation for the daily deal sector.• Mobile and Tablets will change the way advertisers plan campaigns: With the market penetration of mobile and tablets, advertisers can no longer afford to ignore these platforms when creating new campaigns.• Local Advertisers will permeate the web: More local opportunities will drive more advertisers online. Charlie D. Ray, Broad Street Interactive | charlie@broadstreetinteractive.com | @CharlieDR | @BroadST_ATX
  46. 46. Looking at 2012• Social: Social media will continue to see growth in engagement and brands will be forced to listen to consumers.• Reputation Management: Even brands that aren’t active on social media will listen. Listening to consumers is a requirement in the digital age. Charlie D. Ray, Broad Street Interactive | charlie@broadstreetinteractive.com | @CharlieDR | @BroadST_ATX
  47. 47. Looking at 2012• Search: Search continues to show significant growth. Users will conduct more searches requiring search engines to refine results. The days of affordable pay per click campaigns are over.• Display: New ad units will continue to contribute to display’s dominance. However, the pressure is on for ROI and measurement.• Video: The availability of inventory will force prices for video up as more advertisers embrace the long form video and better content that shows strong growth through premium sites, subscription services and YouTube. Charlie D. Ray, Broad Street Interactive | charlie@broadstreetinteractive.com | @CharlieDR | @BroadST_ATX
  48. 48. The “Mad Men” are Dead“The old-fashioned supertanker model is already dead. Clients want smaller collections of people tied to nimble, innovative, evolving structures that can shape and mold themselves into whatever form is needed to solve their problems.”Karine Wilsher, Managing Director, Fallon Charlie D. Ray, Broad Street Interactive | charlie@broadstreetinteractive.com | @CharlieDR | @BroadST_ATX
  49. 49. How do you cope? Charlie D. Ray, Broad Street Interactive | charlie@broadstreetinteractive.com | @CharlieDR | @BroadST_ATX
  50. 50. No, how you really cope…Change, Change or Change. We are smart adaptable people faced with enormous changes in our industry. It is up to us to cut through the seduction of the “shiny new object” and the confusing pace of change to reassure our clients and companies that we are committed to the basics of business. Advertising generates results and we will deliver, regardless of the platform. --Charlie Ray Charlie D. Ray, Broad Street Interactive | charlie@broadstreetinteractive.com | @CharlieDR | @BroadST_ATX
  51. 51. Thank you!Charlie D. RayBroad Street Interactivecharlie@broadstreetinteractive.com facebook.com/BroadSTATX @BroadST_ATX @CharlieDR Charlie D. Ray, Broad Street Interactive | charlie@broadstreetinteractive.com | @CharlieDR | @BroadST_ATX

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