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Analysis on US online advertising for first three quarters for 2009 US online advertising revenues reached almost $5.5billion for the third quarter of 2009, according to the IAB internet advertising revenue report. It representing an improvement of 1.7percentage from Q2’2009 and declined by 5.4percentage same period in last year. Search Advertising’s Share in Total Internet Advertising Revenue Increases for the First Half 2009 Search advertising revenue share increased 1.7% in the total Internet advertising in first six months of 2009, when compared to the first half of 2008. US Advertising Expenditures for First Half Of 2009 Recently TNS media intelligence released a report on total US advertising expenditures during first half of 2009. According to the report, US advertising expenditures declined by 14.3% for the first half of 2009 over the same period in 2008 and reached $60.87 billion. Increased Cyber Security Threats with the Increasing Unsafe PCs and Internet Connections in India India is growing rapidly in IT infrastructure on its way to become an IT super power. According to I-Cube study, PC ownership grew 36% and Internet subscriptions grew 25% in 2008. However, a large number of computers in India have pirated OS and softwares instead of genuine copies. Bing Squeezed The Google’s Share But It Could Not Gain On Google After the launch of Bing with the positive market reaction, it is initially penetrated highly among the US searches. The growth rate of Bing throughout the June was good. As a result, it gained 0.4% share (Comparing with previous month share of Microsoft offices), according to Comscore. With that pace it was able to squeeze the growth of the Google. However, when we compare the shares of these two with June 2008, Bing lost 0.8% and Google gained 3.4%. Decreased Traditional Newspaper Readership, Increased Online Advertising Internet has become a major news source for any kind of news from anywhere in the world in any language. Online news versions are easy to surf and readers can get the required news just by a click besides access to various reliable sources that is not possible with traditional newspapers. Broadband Usage Yields $32 Billion Net Benefits To The Consumers Broadband usage yielded $32 billion net benefits to the consumers in 2008, which increased from $20 billion in 2005. According to Compass Lexecon, this increase illustrates that American households are reaping benefits in many broadband enabled areas such as education, health, work, news, entertainment and civic affairs. Google Search Share Remains Unchanged In the Month of June Google remains unchanged in terms of US search engine market share as yahoo decreased, and Bing increased. Google is still ahead of all other search engines. Google has a search base of 9.1 billion searches with 65% market Share in June 09. The total US search base is about 14 billion searches, which increased about 2.5 billion searches from June 08 to May 09. Online Customers Believe Word Of Mouth More Than Traditional Advertising ‘Online recommendations’ are becoming one of the trusted forms of advertising for a major section of online customers. According to Nielsen, 70% of the people surveyed globally said that they trust ‘Consumer opinions posted online’. More over, 90% said they trust ‘Recommendations of people they know’. Google US Search Share Reaches 63.2% in May 2009 Google leads the US search base of 9.4 billion with 63.2% share in May 2009. According to Nielsen, Google reported a significant 28.2% YOY growth in number of searches in May 2009. While US core search base reached to 14.3 billion, Google is incredibly ahead of all the search engines in US with 5.9 billion searches in May 2009. Search Traffic From Paid Listings Declines 26% Paid search took a hit in April 2009, with a decline of 26% in its search traffic share. Recent report from Hitwise shows that search traffic from paid listings is not in pace with the overall search traffic. The Potential of Search Marketing In Driving ROI for Retailers Effective marketing is key for retailers to survive and stay ahead of competition, especially in recessionary times. It is proven that search engine marketing is helping many small and medium scale enterprises to fortune 500 companies to market their products and services online effectively. Search marketing helps to increase ROI by creating a strong online presence while making it easy for customers to find the retailer online. US Search Behavior in April 2009 The core search query volume of Americans in April 2009 reached 14.8 billion, according to comScore. Google leads this vast search query volume, in terms of search market share, with Yahoo following it. Americans have increased using lengthy search queries, over the past year. Marketers Believe SEO to Be Effective Tool for Generating Sales The 2009 Advertising Effectiveness Survey from Forbes revealed that a significant percentage of Chief Marketing Officers (CMOs) believe that SEO is an effective way to generate sales for their companies. A majority of the surveyed CMOs said that they use conversions or sales data as main metric to measure the success of their marketing campaigns. Almost half of the surveyed marketers believe that SEO has the potential to generate sales for their businesses. Search Marketing Is Gaining Popularity among Retailers A considerable amount of web-only retailers believe that search engine marketing helps to get good results compared to other forms of online marketing based on a survey conducted by Internet retailer. They find search marketing as an effective strategy to adopt amid glooming economy. The survey says natural search results are providing better ROI than paid search for a substantial percentage of retailers. Recession Adds To the Online Fraud Woes Online frauds such as phishing attacks increased in 2008 and are likely to increase more in 2009, as there is a greater chance of vulnerability of innocents fall pray in a downturn. According to Federal authorities, online fraud increased by 33 percent in 2008, rising for the first time in the last 3 years. YoY Retail E-Commerce Spending Seizes Negative Growth US retail e-commerce spending in Q1-2009 recovered from 3 percent negative growth YoY when compared to Q4-2008. According to ComScore, retail e-commerce sales remained flat when compared to Q1-2008, as they recovered slightly from the immediate previous quarter. Sports & Fitness is the fastest growing category online followed by Books & Magazine in dollar sales. Online Reviews Influence Purchasing Behavior Online reviews are gaining more credibility and are influencing more and more online buyers. According to Opinion Research Corp., 84% of Americans say online reviews influence their purchasing decision. 72% Of Total Consumers Are Looking For More Flexible Online Retailers Economic downturn is affecting the purchasing decision of online consumers and demanding flexible options from retailers. According to a survey commissioned by NCR Corporation, 72% of consumers are looking for flexible online retailers and 53% consumers do research about products and services frequently. ‘Install and Neglect’ Policy of Indian ISPs Hinders Internet Growth Internet connectivity in India has decreased when compared to the wireless connectivity in 2007-08. According to TRAI report, the base of Internet subscribers in India has reached to 12.85 million in December 2008. This is very low compared to 101.10 million wireless data subscribers in India in the same month.
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