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Online AdvertisingThis is why you have to be online
Online Advertising spend SA (Source:World Wide Worx & OPA of SA 2009)
Worldwide online advertising spend is the fastest growing sector today
Spend rose by 38% to R319 million in 2008
Up 25% to R398 million in 2009
Predicted year-on-year growth 25%
Makes this R1.6 Billion space by 2014
Conclusion – plenty of growth to come(These figures only include digital businesses registered with the Digital Media and Marketing
Association and are audited by Nielsen's online market intelligence)
Key facts
Online population SA (Source: Online Publishing Association of SA)
SA online population 2009 - 6.9 million users
Prediction 9 million by 2014
DMMA release 1st 2010 quarter figures – 9.1 million registered
users
SA has 5.3 million tax payers
Online consumers has disposable income
Mastercard survey 2009 – 77% of SA users buy online
Key facts
Internet access in SA 2010 study (World Wide Worx and Cisco)
Broadband connections dramatically higher year-on-year
21 % Growth in fixed line from SME's – add half a million users
Wireless broadband subscriptions up 88% in 2009
Planned cables will increase bandwidth capacity 150-fold over
by 2011
18% increase in number of Internet access and Service
providers
Conclusion – SA on the brink of major internet growth
Key facts
SA online ad spend growing at massive rate
Summary
SA on brink of major internet growth
SA online population growing at massive rate
Consumer behavior has changed-print publishing no longer serves reader needs
General
Internet ads debut 1990's
Dramatic change in use of these ads since then; Banner ads declined from 56% (‘98) to 21% (‘03)
Sponsorship declined 33% to 10%
Rich Media gained from 2% - 8%
Greatest rise keyword search from 1 % (‘02) to 35% (‘03)
New formats – 3D visualization and Brand Integration (Internet movies and gaming)
Internet Formats and Advertising
Banner Ads
Used primarily for direct response = call to action
Click through rates decline from 3% (mid 1990's) to 0.5% (early 2000's) down to average of 0.28% (2003)
Studies show:
oAnimated ads - better recall and faster click through vs static
oBigger banners higher and faster clicks than smaller ads
oClick through rates affected by incentives
Internet Ad Revenues Stats
Sponsorship
Placement of logo's on web sites used to build good-will
Creates association between brand and an event that target consumer values highly – Brand-building
Online sponsorships benefit from users' visits and their positive disposition towards sponsored websites
(See Crush comments)
Internet Ad Revenues Stats
Pop-ups
Controversial - perceived as intrusive and forced
Forced exposure ads on decline until publishers find new and innovative ways to execute
(See competition stats)
Internet Ad Revenues Stats
Rich Media
Premise of RM – message appealing to multiple senses
June 2002 study found 6x higher click rate than with banner ads, average of 2.4% click through rate worldwide
Key learnings:
oUsing graphic ads vs words – +21% oUsing flash ads – + 37%oRich Media - + 44%
Internet Ad Revenues Stats
Keyword search
Most popular form of internet advertisingEstimated that up to 40% of searches is commercially motivated, keyword search lucrative to websites designed to sell
Internet Ad Revenues
3D Visualization
Consumer interact with simulated productResearch shows improved product knowledge, more positive brand attitude and heightened purchase intention
What do advertisers want from online ads?
Pre-segmented market – targeting and reaching the correct consumers
Consumers responding directly from the ad
Consumers directed to the correct landing page
Statistics
“Real estate” to create interactive ads facilitating all of the
above
Ultimately defined traffic cost – pay per acquisition
Advertisers Needs
How are we stacking up ?
Crush Food & Wine Magazine
Crush Food & Wine Magazine
Crush Magazine Stats
Issue 1-3
Crush online only magazine
Launched 25 June 2010
Issue 1 attracted 1600 subscribers and 4000 reads in the first
month. With Issue 2 & 3 the readership of Issue 1 increased to
5800 reads which means the ad attracts views for as long as
the magazine is online.
Current readers 6393,magazine been viewed 8896 times, 114
835 page views
Subscribers 4300. We have a 54% conversion rate from
readers to subscribers.
Demographics 69% Female, 56% R20k personal income per
month, 85 % older than 30 years
Average dwell time per page 20sec – 1min13 sec
Numbers
Results
Results
Results
Results
Results
Going forward
We can see from these statistics that Crush magazine delivers
consistent high click through rates.
We speak to a pre-segmented market (high net worth
individuals) – i.e. you are targeting and reaching the correct
consumers
Consumers respond directly from the advert and it is in your
best interests to create ads with defined call to action
Interactive adverts and competitions deliver very high click
through stats.
Summary
Crush PackagesYour digital strategy for the year ahead
Crush PackagesYour digital strategy for the year ahead
Crush PackagesYour digital strategy for the year ahead
Crush PackagesYour digital strategy for the year ahead