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Internet: 2nd most complained non-broadcast advertising format

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asa1.jpg Internet or online advertising has failed to meet the high advertising benchmark set by Advertising Standards Authority (ASA) and now regarded as the second most complained non-broadcast advertising next only to national press.

To quote from the ASA 2006 Annual Report:

Second most complained about was the Internet, with 2,066 complaints, representing a 32.7% year-on-year rise. Five years ago, in 2001, the Internet ranked as the eighth most complained about of all nonbroadcast media.

Yet the boundaries of regulatory responsibility online are still unclear. Consumers expect the same levels of honesty and truthfulness online as they do in more traditional advertising media.

While Internet ads are not sanctioned by ASA, I guess the time is now for online advertising companies to form a committee to regulate and set advertising standards. I’m afraid, however, that this concept is easier said than done.

Originally posted on May 13, 2007 @ 10:24 am

Google to face jury trial

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Google AdwordsGoogle will face a jury trial to defend its pay-per-click advertising system, AdWords, against a trademark infringement case filed by US window blinds reseller, American Blind & Wallpaper Factory Inc. This marks the first case against keyword advertising problems ever to face the jury.

According to Reuters, American Blinds complaint argues that Google’s system violates trademark law by allowing competitors of American Blinds to use Google’s system to buy keyword search terms, such as “American Blind,” which trigger ads from rival companies.

“We spend millions of dollars annually to build brand awareness and cannot stand idle while Google allows our competitors to ride our coattails,” said a statement from Steve Katzman, CEO of American Blind.

Expect this legal scuffle to heat up considering the risks involved. Apparently, AdWords constitutes 98% of Google’s $10.6 billion revenue earned in 2006. Jury selection is slated on November 9.

Originally posted on May 12, 2007 @ 3:57 am

Yahoo! begins “Be a Better…” brand campaign

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YahooYahoo! Inc. today unveiled a new integrated brand campaign that demonstrates how Yahoo! can help people be better at whatever they’re into. Whether it’s being a better movie-goer, fashionista, grill master, or marketer, Yahoo! empowers users to connect to their interests and passions and evolve that part of their lives through Yahoo!’s breadth of information, tools, and services.

“From everyday tasks to pie-in-the-sky aspirations, this campaign is really about empowering our customers be to better at whatever is important to them,” said Cammie Dunaway, chief marketing officer at Yahoo! Inc. “It’s not about what Yahoo! does, but what you can do with Yahoo!.”

The “Be a Better …” campaign is Yahoo!’s most integrated and interactive effort to come to life across Yahoo!’s network. The campaign spotlights Yahoo! Answers and Yahoo! oneSearch, a new search service that gives consumers better search results on their mobile phone, to showcase how people can enhance their lives by using Yahoo! to access the world’s knowledge and make informed decisions from anywhere, anytime.

Originally posted on May 12, 2007 @ 4:50 am

Social network marketing to hit $2.5 billion in 2011

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myspace.jpgNow is the time for social networks to fulfill the promise of social network marketing by showing that the key concept of marketing “one-to-one-to-many” provides real results, says eMarketer’s report “Social Network Marketing: Where to Next?” A study sponsored by MySpace, issued in April 2007, begins to fulfill that need, but more is required.

eMarketer has increased its estimate of US ad spending on social networks to $900 million in 2007. The increase comes from two factors: increased revenue projections for Facebook and additional spending on niche and marketer-sponsored social networks. Between 2007 and 2011, US ad spending on social networks will grow 180% to $2.5 billion.

MySpace, still the largest player by far, is estimated to generate $525 million in the US this year. Facebook is expected to generate $125 million and both should continue to see healthy revenue increases. Combined, the two account for 72% of US social network ad spending in 2007 and 75% in 2008.

“But issues are beginning to surface,” says Debra Aho Williamson, senior analyst and author of the report. “Is there enough interest among consumers to support so many ventures? Does every company need a social network? Indubitably, many of the hundreds of social networking ventures pouring into the market will not survive.”

Originally posted on May 9, 2007 @ 6:49 am

2006 Canadian online advertising tops $1 billion

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The Interactive Advertising Bureau of Canada (IAB) announced that 2006 Canadian Online Advertising Revenues surged to an unprecedented $1.01 billion dollars for the year. The 2006 actuals represent a 26% increase over the $801 million originally estimated by the IAB for 2006; and an 80% increase over the 2005 actuals of $562 million. Of the $1.01 billion, approximately $208 million or 21 percent of ad dollars were allocated to the French Canadian Online market, representing growth of 68% over the 2005 actuals of $124 million.

And there’s still more growth to come. IAB Canada’s projected total for 2007 Online advertising in Canada, is estimated to be $1.337 billion – a full 32 percent more than the 2006 actual of $1.01 billion. “It’s interesting,” says Gignac. “While it took us 13 years from when the first banner was served on the Internet, until now, to reach the billion dollar mark in Canada, it may only take us another two to three years to reach the second billion.

Originally posted on April 30, 2007 @ 8:27 am