The most notable similarity is that both genders make the majority of local purchases in person. According to BIA/Kelsey’s Consumer Commerce Monitor™, 66.6 percent of men and 65.2 percent of women purchase products and services in person from local sources.

Because consumers make most purchases at physical locations, reaching them at or near those locations is a good bet; enter mobile marketing. How to reach them on mobile devices, however, is where we see differences by gender.

Women are socially engaged, so social advertising is essential. According to Nielsen, the majority of mobile social network users are female, so it’s understood that a lot of their social network usage is done via mobile device.

Because Facebook is the most used social media site for local shopping by women, it is important for local businesses to establish a Facebook page and form relationships with female consumers. This could include promotional opportunities on Facebook pages that female consumers can redeem at physical business locations.

Men, as we’ve discussed, are more engaged with mobile devices. They also interact more with traditional media than women do. TV in fact is men’s most used source for local shopping (women’s is online search), according to Consumer Commerce Monitor.

To effectively reach men, local businesses should therefore maintain advertising through traditional media. But when doing so, traditional media can be used to drive traffic towards digital opportunities. This is especially true for mobile, given that the data indicate men are highly engaged there.

CCM data also indicate that local businesses can benefit from mobile advertising and innovation at their physical locations. This includes smartphone scan loyalty programs.

(Click image to expand)

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One of the hottest topics in tech & media is the quickly evolving state of mobile advertising. Meanwhile, some of mobile’s early promises include high intent users, and more trackable advertising.

The latter is where things are really getting interesting. And we’re seeing the collision of big data and mobile yield lots of interesting ways to measure ad campaign effectiveness. That’s where the art of attribution comes in.

We unpacked the state of the industry in a recent report that was pushed out for distribution today. This is part of our series of co-produced reports, done in tandem with Verve Mobile. It highlights attribution drivers and best practices.

Check out the exec summary below, and you can download the entire thing here. And unlike much of our long form content, it’s free. We’ll discuss this topic a great deal in 2014, especially at our conferences. Stay tuned.

EXECUTIVE SUMMARY

Mobile tops the list of tech and media topics that have gained the marketplace’s attention and investment over the past few years. This focus is being sustained by hardware innovation, rising smartphone penetration and the resulting mobile Web and app usage.

A key part of this discussion is monetization. Though paid apps have succeeded in some areas such as games or niche vertical interest, ad support is a more broadly fitting choice for lots of app developers and publishers, due to mobile users’ high commercial intent.

But a challenge has arisen in the slower than expected advertiser adoption. Put another way, advertiser adoption hasn’t caught up with mobile usage. Mobile holds a 12 percent share of U.S. consumers’ media time, but only a 3 percent share of ad revenue.

The good news is that a few factors will counter this supply/demand imbalance that’s mitigating sell-side monetization. For one, mobile’s high engagement relative to other ad supported media will create premium inventory that boosts advertiser demand and rates.

One of the main sources of this premium lift will be location targeted ads. Their value will be a function of congruence with user intent, such as 50 percent of Google mobile searches that seek local information. Location targeted ad performance will also drive this.

Such performance deltas for mobile ads that carry various flavors of location relevance are already evident from data shared by mobile ad companies cited in this report. Advertiser demand will follow in an inevitable process of market evolution towards higher ROI.

Mobile local campaign tactics won’t just involve where the ads show up and what they contain, but how they’re measured. A feedback loop of ad effectiveness drives towards one of the most important areas of mobile ad innovation in the coming years: Attribution.

Knowing which ads effectively drove brand lift and various forms of conversions will have a vital role in optimizing and assigning value to mobile ad tactics. And that will only come about through accurate measurement of actions taken after ad exposure and engagement.

This is developing in lots of ways that are getting attention such as “closed loop” point of sale technologies. This includes mobile payments, coupons and other areas whose nascent stage and fragmented standards compel more realistic near-term solutions.

Attribution technologies are developing along these lines to speak the language of large advertisers. Brand ad dollars are where the action is in mobile today, and attributing the success of those campaigns is the name of the game.

The question remains how? The science of mobile ad attribution is at an early stage, but we’re already seeing innovation and emerging best practices.

This report examines ways mobile advertising and attribution are materializing, how mobile location data is playing a central role in these approaches and where they’re moving next.

The post Free BIA/Kelsey Report: Mobile Ad Attribution appeared first on BIA/Kelsey - Local Media Watch.

Day 2 of Leading in Local: Interactive Local Media conference opened with BIA/Kelsey’s VP and Chief Economist, Mark Fratrik, who shared some exciting pieces of information from BIA/Kelsey’s Media Ad view. Media Ad View is BIA/Kelsey’s research product that offers a market by market view of the local media pie.

Fratrik stated, “Local media advertising revenues will climb to $151.5 billion in 2017.” He also communicated that BIA/Kelsey’s goal is to help clients leverage the real business opportunities inherent in this growth to solidify their leadership position.

“Our research-driven data, strategic analysis and competitive intelligence can help clients make the right decisions,” said Fratrik. Fratrik went out further to outline 7 steps that BIA/Kelsey does to help clients:

Step 1: Acquire reliable view of the local media landscape
Step 2: Size the current and future local market
Step 3: Profile the competition
Step 4: Track advertiser trends
Step 5: Understand the changing consumer
Step 6: Operate with reliable, actionable market insights
Step 7: Create a concise strategic roadmap

As the leading experts in cross-platform local advertising, BIA/Kelsey can help design a business strategy that drives new levels of success for media companies. BIA/Kelsey’s local media & advertising expertise helps clients understand the dynamics of their local marketplace, and identify, analyze and manage the competition. Media Ad View Plus delivers the media industry’s most reliable, comprehensive data and insights, Media Ad View is used by many of the largest media companies in the U.S. to evaluate market opportunities across multiple dimensions: market, media and business category.

The post At Leading in Local: ILM 2013: Playing to Win: Building a Leading Interactive Local Sales Strategy appeared first on BIA/Kelsey - Local Media Watch.

BIA/Kelsey projects Out-of-Home advertising revenue to grow from $7.3 billion in 2012 to $9.0 billion in 2017, a compound annual growth rate (CAGR) of 4.3%.

While leisure/recreation was Out-of-Home’s biggest spending vertical, more leisure/recreation advertising dollars went to newspaper in 2012 than Out-of-home. In 2012, Out-of-Home Advertising was the second highest media among Leisure/Recreation advertising, according to Media Ad View Plus, with 18.5% of the vertical’s advertising spend. Newspaper accounted for 21.7% of the vertical’s advertising spend. However, as newspaper’s advertising revenue continues to decline, BIA/Kelsey projects leisure/recreation spending on out-of-home will outpace newspaper in 2014.

2012 Leisure/Recreation Ad Spending by Media

Media Ad View Plus breaks the Leisure/Recreation vertical into 10 subcategories: Traveler Accommodation (Hotels-Motels); Airline Transportation; RV (Recreational Vehicle) Parks and Recreational Camps; Performing Arts Companies; Spectator Sports; Museums, Historical Sites, and Similar Institutions; Amusement Parks and Arcades; Gambling Industries; Other Amusement and Recreation Industries; and Motion Picture and Video Exhibition. In 2012, Traveler Accommodation (Hotels-Motels) accounted for more than 35% of the spending on Out-Of-Home advertising in the Leisure-Recreation vertical.

The Out-of-Home advertising medium includes more than just billboards. The chart below, from the Outdoor Advertising Association of America (OAAA), shows the different Out-of-Home displays available to advertisers.

Source: OAAA

According to OAAA, billboards accounted for 64% of Out-of-Home advertising in 2012, followed by transit with 17%, alternative with 12% and street furniture with 7%.

More information on Media Ad View Plus is available here.

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In a previous blog post, I mentioned that newspaper was the medium of choice for real estate advertising in 2012. However, while newspaper accounted for 27.7% of real estate advertising spend, the real estate vertical accounted for only 2.5% of newspaper advertising revenue. Retail (23.5%) and automotive (16%) were actually the largest vertical categories advertising with newspapers in 2012, according to BIA/Kelsey’s Media Ad View Plus.

Approximately 22% of the retail advertising revenue going to newspapers came from one of the 28 retail subcategories broken out in Media Ad View Plus: warehouse clubs and supercenters. For automotive, more than 77% of the advertising revenue going to newspapers came from automotive dealers and manufacturers. This isn’t surprising, as both warehouse clubs/supercenters and automotive dealers/manufacturers have the highest spend in their respective categories across all media.

BIA/Kelsey projects that newspaper advertising revenue will continue falling, reaching $21.3 billion in 2013, a loss of 5.4%. By 2017, BIA/Kelsey expects newspaper’s share of total advertising spend to have continued to decline, falling to just under 12% of total advertising spend. Newspaper advertising revenues are expected to fall from $22.5 billion to $17.8 billion, a compound annual growth rate (CAGR) of negative 4.7%. This projection places newspaper in third place in advertising spend, behind direct mail and television, but just ahead of radio and online.

With advertising revenue dropping, newspapers are looking for alternative sources of revenue. “Digital pay plans are being adopted at 450 of the country’s 1,380 dailies and appear to be working not just at The New York Times but also at small and mid-sized papers. Twinned with print subscription and single-copy price increases, the digital paywall movement has circulation revenues holding steady or rising. Together with the other new revenue streams, these added circulation revenues are rebalancing the industry’s portfolio from its historic over-dependence on advertising,” says The Pew Research Center’s Project for Excellence in Journalism’s State of the News Media in 2013 report.

BIA/Kelsey projects that in 2012, online represented 13.8% of newspaper’s advertising revenue. This is expected to increase to 20.5% in 2017.

More information on Media Ad View Plus is available here.

The post Newspaper Was the Second Highest Grossing Advertising Medium in 2012 appeared first on BIA/Kelsey - Local Media Watch.

2012 Real Estate Ad Spending by Media

So nearly 28% of real estate ad spending goes to newspaper and 24% goes to online, according to Media Ad View Plus, but where are home buyers actually looking for homes? According to National Association of Realtors in their 2012 Profile of Home Buyers and Sellers, “nine in 10 home buyers today rely on the internet as one of their primary research sources, and 52 percent turn to the web as their first step.”  As you can see below, while 90% of home buyers might use Internet as a primary research source, the National Association of Realtors reports that only 27% use newspaper ads.

• Internet: 90%
• Real estate agent: 87%
• Yard sign: 53%
• Open house: 45%
• Newspaper ad: 27%
• Home book or magazine: 18%

In a joint study by National Association of Realtors and Google, entitled The Digital House Hunt: Consumer and Market Trends in Real Estate, they found that 89% of new home shoppers used a mobile search engine and that 68% used a mobile application throughout their research process.

Not surprisingly, given the National Association of Realtors and Google’s findings, online advertising spending is expected to grow rapidly.  By 2017, online is expected to be the medium of choice for real estate, with nearly 41% of the advertising pie, according to Media Ad View Plus. Meanwhile, newspaper’s share of the real estate advertising pie is expected to decline, reaching less than 7% by 2017. Mobile is also expected to benefit from the newspaper industry’s continuing decline, as its share increases from 1% to 12.6%.

2017 Real Estate Ad Spending by Media

BIA/Kelsey is projecting online’s revenue share to start surpassing newspaper’s in the Real Estate vertical in 2013.

More information on Media Ad View Plus is available here.

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Television dominated the Government/Political/Religion (“GPR”) vertical in 2012, according to BIA/Kelsey’s Media Ad View Plus. In 2012, television’s $3.1 billion of advertising from GPR represented nearly 3/4 of total advertising for this vertical.

2012 Government/Political/Religion Ad Spending by Media

The $3.1 billion of GPR advertising represented 15% of the television media’s total ad spend in 2012, with the vast majority of it coming in the Fall (September to November), based on information from the Television Bureau of Advertising (TVB). TVB has studied the spending patterns in the political category for the past several election cycles. The vast majority of political spending occurs in the Fall (September to November), with the exception of primaries, which provide some advertising revenue from January to September, at least in markets within battleground states. “Clearly local TV’s role as the campaign media workhorse has not changed” states the TVB about the 2012 election season.

GPR advertising is cyclical, peaking during big national and local elections, which occur during even years. The more hotly contested the elections are, the better for local television stations. In 2017, an odd year with no major political elections, the GPR advertising landscape is vastly different, with only 19% of GPR advertising revenue going to television. More GPR advertising revenue will be going to direct mail than television in 2017, according to Media Ad View Plus. In odd years, such as 2017, GPR is dominated by smaller local elections, which rely more on direct mail to get their message to voters in their districts rather than advertise to entire television markets.

2017 Government/Political/Religion Ad Spending by Media

The bounty that can be GPR revenue during the even years is not equal across the 210 Nielsen television markets. Markets located in battleground states will see greater GPR advertising spend than markets in states that are heavily red or blue. States such as Ohio, Virginia and Florida have become predictable battlegrounds states. These so called “purple” states see boosts during even years, with the Presidential, Senate and House races.

More information on BIA/Kelsey’s Media Ad View Plus is available here.

The post Television Dominates the GPR Vertical, at least during Even Years appeared first on BIA/Kelsey - Local Media Watch.

In 2012, television dominated both the Automotive advertising and Government/Political/Religion (“GPR”) verticals, according to BIA/Kelsey’s Media Ad View Plus. More on the GPR vertical later.

Television’s $4.6 billion share of automotive advertising represented 28.4% of total automotive advertising in 2012. This $4.6 billion represents 22% of television’s total advertising revenue in 2012, making it the highest spending vertical for television.

2012 Automotive Ad Spending by Media

Media Ad View Plus’s automotive vertical includes five subcategories: automobile dealers and automotive manufacturers, other motor vehicle dealers, automotive parts and accessories stores, tire dealers, and gasoline stations and automotive repair. Of these, automotive dealers and automotive manufacturers were the predominant advertiser category, accounting for more than $3.8 billion of the total automotive advertising $4.6 billion spent on television.

“If it’s got a screen, automakers want to advertise on it,” said Ad Age in a recent article, Automakers Like Video, But Still Pour Gas On TV For Big Product Launches. While the automakers on Ad Age’s 100 Leading National Advertisers list have been increasing their digital advertising, “they’re also showing enduring faith in the American couch potato, with spending on television increasing from 2011 to 2012. Ad Age attributes the continued popularity of television to the automotive vertical to major product launches. The top five spending automakers, according to Ad Age, are General Motors, Ford, Toyota, Fiat (Chrysler Group) and Honda.

In 2017, television’s share of automotive advertising is expected to increase to 32%, while the shares going to other traditional media such as newspaper and direct mail are expected to decline significantly. Newer media, such as online and mobile, are also expected to increase their share of the automotive pie. Part of this increase can be attributed to the significantly lower GPR revenues expected to be spent on television in 2017. Without GPR dominating television commercials in 2017, as happened in 2012, there will be more inventory available for the other verticals, such as automotive.

More information on Media Ad View Plus is available here.

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According to BIA/Kelsey’s Media Ad View Plus more than 43 percent, or $10.7 billion, of retail advertising dollars went to direct mail in 2012. That $10.7 billion represents 30 percent of direct mail’s total ad spending. Furthermore, BIA/Kelsey doesn’t expect that to change much by 2017, where retail is still projected to spend 43 percent, or $12.3 million, on direct mail.

2012 Retail Ad Spending by Media

So what types of retailers are spending money on direct mail? The largest spending retail specialty is warehouse clubs and supercenters, with $2.35 billion in spending on direct mail in 2012. This is more than double its closest competitor, discount department stores, which spent $1.1 billion.

What attracts retailers to direct mail over other media? According to direct mail companies, unlike ads on radio, television and newspapers, which go out to everyone in the market, direct mail can be targeted to a particular location or demographic, providing a better ROI. This could be valuable to brick-and-mortar retailers with fixed locations. Not everyone subscribes to a newspaper, watches TV, listens to the radio, or owns a computer or smartphone, but everyone gets mail.

The National Federation of Independent Business (NFIB) says that direct mail is an old-school marketing method that still works for small businesses. “Direct mail can be an effective part of any marketing campaign. Yes, email, Facebook and even Twitter work for some small businesses, but that doesn’t mean tried and true methods like direct mail should go by the wayside.”

According to BIA/Kelsey’s Media Ad View Plus, overall direct mail accounted for nearly $35.8 billion out of a total $132.2 billion in U.S. advertising dollars. That’s a whopping 27.1 percent of total advertising dollars, making it by far the largest media category. Newspapers, the next largest medium, accounted for 17.1 percent of total advertising dollars in 2012, followed by television in third place with 15.7 percent.

BIA/Kelsey expects this to change somewhat by 2017, with direct mail still on top with 25.1 percent of total advertising dollars, followed by television with 15.1 percent, with newspapers falling to third with 11.9 percent.

More information on Media Ad View Plus is available here.

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But even with that good news, why do we still believe that the advertising marketplace will only see 2 percent growth in 2010? Why do we expect only moderate growth in those advertising revenues for the next few years?

The simple answer is JOBS! Today’s announcement of a 95,000 total decrease in jobs for the month of September 2010 (and only a 64,000 increase in private employment), a full year after the recession ended, is noticeably weak. Job growth has always been a lagging indicator of the strength of the economy, but the lag feels appreciably long this time.

Moreover, the decrease in employment during this recession was so significant. According to a recent Milken Institute study, 8.4 million jobs were lost during the recent recession, 4.7 million more jobs lost than the recession of 2000-2001. So, the uncertainty surrounding this recovery rests with the remaining BIG HOLE OF JOBS that the economy must claw its way out of. And it is not just with the people who lost their jobs and have not found a substitute, but also the larger group of working people who are somewhat concerned about their own jobs as a result.

So where does this leave the advertising marketplace? Clearly, some advertisers are going to hold back until they see a recovery in the job market. Automotive advertising is already showing some strength this year, but remember that they really contracted their spending last year. Other advertisers are taking a more “wait and see” attitude, waiting till job growth is better, consumer confidence and the resulting consumer spending increases. If we see that job growth getting stronger in the next few months, then certainly advertising will follow. If we don’t, tepid advertising growth will continue.

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