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Interactive Marketing & Media A SUPPLEMENT TO Published April 17, 2006 © Copyright 2006 Crain Communications Inc. Interactive Marketing & Media | Advertising Age | 3 INTERACTIVE MARKETING AND MEDIA DATA ON THE DIGITAL WORLD WELCOME TO OUR FIRST ever Interactive Fact Pack. Wait. Did I just say first? Seems impossible, but it’s true. The reason it seems impossible is because Advertising Age has been covering interactive marketing and media since the early ‘90s, when we introduced a weekly section in our print publi- cation and went online ourselves, first on Prodigy and then, of course, the Web. This latest product expands our commitment to being the leading source of news, infor- mation and data in this vibrant area. There’s a lot here to interact with. The stories these numbers tell are as fascinat- ing as the development of this media and marketing channel. You’ll learn, among other things, that nearly four of 10 U.S. households already have broadband access. And that reading blogs is one of the most popular activities among online users. It’s no surprise that search is a robust growth area, but the fact that it will account for 41.5% of 2006’s online spending is a shocker. Its growth rate will likely slow, but it will get a bigger share of marketers’ dollars. If you had any doubts about the increasing importance of social networking and user-generated content, note that the popular (and controversial) MySpace is already among the top 10 most-trafficked ONLINE AD SPENDING sites. RSS content is small, but growing, Data from eMarketer, which benchmarks projec- and another example of users’ desire to tions against Interactive Advertising Bureau/ PricewaterhouseCoopers data, for which the last control their online experience. There’s full year measured was 2005. Dollars in billions. not yet much real data on other hot, PROJECTED AS % emerging areas such as video on demand FORMAT 2006 TOTAL and user-generated comment, but look for it in future fact packs. Such change is Paid search $6.47 41.5 the nature of this medium. Check out in- Rich media 1.79 11.5 game advertising: it’s now pegged at just $173 million but expected to top half-a- Classified 2.73 17.5 billion dollars by 2009. Display ads 2.89 18.5 It’s important to note that the interac- .62 4.0 tive market is monitored by dozens of Sponsorships 0 companies, trade groups and publications. Referrals 0.78 5.0 Since their methodologies vary, industry .16 1.0 totals often do as well. But in total this E-mail 0 Fact Pack will give you the clearest pic- Slotting fees 0.16 1.0 ture you can get. Dive in. Total 15.60 100.0 —Scott Donaton 4 | Advertising Age | FactPack CONTENTS Overview The interactive channels marketers are using, and plan to use 6 Web sites The most unique visitors and the highest ad revenue 8 Online display advertising The top 25 marketers and the top categories 22 Consumer Internet usage Internet penetration, habits and consumer spending 28 Classified The top classified sites and recruitment sites by share of market 36 Search Search engine market share and the top search terms 38 Mobile Mobile device habits, WAP subscribers by carrier and handset share 42 E-mail What marketers are spending and what blocked e-mail costs 44 Games The top 5 games and how marketers plan to spend 46 RSS Users of Really Simple Syndication visit news sites more often 47 Awards & top agencies Interactive awards, the top 10 interactive agencies and top ad networks 48 Miscellaneous PC market share and digital player share 50 TO REACH US By e-mail: This report was compiled by Advertising Age in Chicago. Contact [email protected]; Postal mail: Advertising Age , 711 Third Ave., New York, N.Y. 10017; Phone: (212) 210-0100. Subscription and print sin- gle copy sales (888) 288-5900; Advertising (212) 210-0159; Library services (312) 649-5476. DataCenter staff: R. Craig Endicott, Kevin Brown, Scott MacDonald, Mark Schumann, Mike Ryan, Maureen Morrison. 6 | Advertising Age | FactPack OVERVIEW A World of Success FT.com’s US visitors are worldly and MARKETERS USING INTERACTIVE successful. And hard to beat: Source: Forrester Research’s fourth quarter 2005 Marketing Panel Online Study. More than 230 mar- keters were asked if they were currently using, piloting or expected to direct each of these channels during the next 12 months. • Highest US Income PERCENT RESPONDING BY MARKETER CATEGORY • More US Car Buyers CONSUMER MEDIA & FINANCIAL EQUIPMENT CHANNEL PRODUCTS COMMUNICATIONS RETAIL SERVICES & TECH • More US Finance/Banking tch.com, NYT.com, Yahoo! Finance. Yahoo! tch.com, NYT.com, Rich media e-mails 86% 76% 71% 51% 59% Contextual targeting 71 87 71 60 54 osition of those in the banking/finance industry Rich media display ads 71 81 60 63 51 Blogs/social networks 69 70 54 28 51 Behavioral targeting 63 85 83 72 56 RSS 63 65 37 37 38 Mobile marketing 46 70 34 31 28 Advergames/in-game ads 43 41 31 22 8 PLANNED SPENDING ON EMERGING AD TACTICS Source: MarketingSherpa as cited by eMarketer, from a study of ad:tech attendees, January 2006. PERCENT RESPONDING DEFINITELY MORE THAN A MARKETING TACTIC SPENDING ON YEAR OUT Adding RSS feeds 40% 19% In-house blogs 35 18 Ads on third party blogs/blog networks 30 19 Video ads 27 26 Ads in RSS feeds 21 27 Mobile/wireless 20 32 In-house podcasts 18 31 A global view for a global world. Sponsoring podcasts 14 32 For further information on how to reach this influential audience, Product placement in video games 10 36 please call Lucy Gould at 212-641-6646 Highest average HHI, highest composition of those who "will definitely purchase" a car/truck in the next 6 months, highest comp among competitive set, Forbes.com, which Economist.com, Business includes; Week FT.com, Online, MarketWa WSJ.com, CNNMoney.com, Source: @Plan Spring 2006 8 | Advertising Age | FactPack WEB SITES Here. There. Everywhere. TOP FIVE PORTAL SITE COS. BY UNIQUE VISITORS Ranking based on data from comScore Media Metrix. Sales and earnings from public documents. Ad spending is measured media ad spending from TNS Media Intellience. Yahoo yahoo.com; Sunnyvale, Calif. 120 million unique visitors a month averaged 244.9 minutes on the sites. NUMBERS 2005 2004 % CHG EXECUTIVES Even here. Revenue (billions) $5.26 $3.57 47.1 9,816 employees led by Terry S. Semel, chmn, CEO & dir; Jerry Net income (billions) 1.90 0.84125.9Yang, co-founder & chief Yahoo; David Filo, co-founder & chief Ad spending (millions) 36.8 55.1 -33.2 Yahoo; TOP MKTG EXEC: Cammie Dunaway, chief mktg officer Microsoft Corp. msn.com, msnbc.com (joint venture), microsoft.com; Redmond, Wash. 110.8 million unique visitors a month averaged 176 minutes on the sites. NUMBERS 2005 2004 % CHG EXECUTIVES Revenue (billions) $39.79 $36.83 8.0 61,000 employees led by William H. Gates III, chmn; Steven A. Net income (billions) 12.25 8.17 50.0 Ballmer, CEO; TOP MKTG EXEC: Kevin Turner, COO Ad spending (millions) 463.0 485.5 -4.6 ValueClick Media is now the most powerful way to achieve direct response and brand marketing results online. Time Warner aol.com, cnn.com, multiple media sites; New York 110.4 million unique visitors a month averaged 290.5 minutes on the sites. NUMBERS 2005 2004 % CHG EXECUTIVES Where your consumers are... Revenue (billions) $43.65 $42.09 3.7 85,000 employees led by Richard D. Parsons, chmn & CEO-Time Warner; Our vast reach provides access to more than two-thirds of the U.S. Internet audience. Net income (billions) 2.91 3.36 -13.4 Jonathan F. Miller, chmn & CEO-AOL; TOP MKTG EXEC: John Partilla, pres- Technology, expertise and custom capabilities allow us to precisely target your audience, Ad spending (millions) 2,102.9 2,047.4 2.7 Time Warner Global Mktg; Joe Redling, chief mktg officer-AOL wherever they may be online. Where you should be... google.com; Mountain View, Calif. Google No other network offers better direct response and brand marketing solutions or a more 94.6 million unique visitors a month averaged 32.3 minutes on the sites. knowledgeable sales and account management staff to support the success of NUMBERS 2005 2004 % CHG EXECUTIVES advertisers and their agencies. Revenue (billions) $6.14$3.19 92.4 5,680 employees led by Eric E. Schmidt, chmn & CEO; Larry Page, Our new display advertising and lead generation technologies make ValueClick Media Net income (billions) 1.47 0.40 267.2 co-founder & pres-products; Sergey Brin, co-founder & pres-tech; the highest performing and most scalable way to reach consumers online. Ad spending (millions) 8.1 4.6 76.9 TOP MKTG EXEC: Omid Kordestani, sr VP-global sls & bus devel Here. There. Everywhere. eBay ebay.com; San Jose, Calif. But don’t take our word for it. Let our results speak for themselves. 66.6 million unique visitors a month averaged 94.4 minutes on the sites. www.valueclickmedia.com/evenhere NUMBERS 2005 2004 % CHG EXECUTIVES Revenue (billions) $4.55 $3.27 39.2 11,600 employees led by Pierre M. Omidyar, chmn; Margaret C. Net income (billions) 1.08 0.78 39.0 Whitman, pres & CEO; TOP MKTG EXEC: John Donahoe, pres-eBay Marketplace ValueClick Media, a ValueClick, Inc. company Ad spending (millions) 128.9 101.2 27.3 30699 Russell Ranch Road, Suite 250, Westlake Village, CA 91362 818.575.4500 10 | Advertising Age | FactPack TOP 25 WEB SITES BY UNIQUE VISITORS Source: comScore Media Metrix.
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