PhillyDeals: A close look at online advertising

YouTube and other Google Inc. sites led the packin "unique viewers" last month.
YouTube and other Google Inc. sites led the packin "unique viewers" last month.
Posted: November 27, 2013

Analyst Tony Wible at Janney Capital Markets in Bedminster, N.J., tracks how U.S. advertisers are targeting you to buy their stuff - and how fast that's changing with smartphones and PC video and social-media and tracking data.

Here's what he says in a report to clients:

Online TV provider Hulu is flashing 80 ads per month at its typical watcher as of October, up from 58 last year and way ahead of YouTube (31) or AOL (26). "This makes Hulu less of a direct competitor to Netflix" and more like cable TV, he adds.

Multiscreen media advertising "is expected to grow 20%-50% in the next 3 years," according to Nielsen and American Newspaper Association data. Still, "skeptics are unclear" whether even today's distracted media consumers are really watching two screens at once, or are just too lazy to turn one off.

YouTube and other Google Inc. sites last month "drew the most unique viewers, at 165 million [and] 506 minutes/viewer," while Facebook was a distant second (70 million viewers, 34 minutes/viewer). But AOL and its affiliates, including Adap.tv, "had a greater reach" of up to half the U.S. population, vs. three-eighths at Google, Wible adds, citing comScore Inc. data.

Digital ad spending on local media, including mobile-phone ads, is expected to grow at a 14 percent compound annual rate, to $44.5 billion, by 2018, Wible notes, citing BIA/Kelsey. Mobile will account for more than a quarter of digital local ad spending by then - and local will be more than half of all mobile advertising, up from three-eighths today.

Geolocation services that make it easier for advertisers and media to track customers are speeding the rise in mobile ads. "The increases in digital will likely come at the expense of radio and traditional print," which is why radio and print have followed everyone else into mobile.

Game boxes are back: "8th Generation" gamers boosted both Sony Corp.'s PS4 and Microsoft Corp.'s XboxOne sales to "over a million units in their first day of launch," vs. two months to reach that level for the last-generation PS3. Wible's conclusion: game "demand is cyclical" and digital gaming "has not destroyed the business" after all. Indeed, it's still possible game boxes will become bases for other media delivery.


JoeD@phillynews.com

215-854-5194

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