Online Ad Revenues On the Rise

The Interactive Advertising Bureau (IAB) and PricewaterhouseCoopers released their latest Internet advertising numbers for the third quarter. According to the organizations, Internet advertising revenues reached nearly $5.5 billion for the quarter. That is an increase of 1.7% from the second quarter.

The numbers are still significantly down from the same period last year, but any increase is a good sign of things to come. There has been a 5.4% decline from last year.

"The Internet has transformed the consumer experience of media, providing marketers with unprecedented opportunities to engage with their customers," said Randall Rothenberg, President and CEO of the IAB. "The advertising sector overall has been hard hit by the economy, but digital media has been a bright spot within the larger economic downturn as it is capturing an ever-increasing piece of marketers’ advertising spend."

"While all segments of the media industry have experienced declines, online advertising remains resilient and is once again showing signs of growth," said David Silverman, a partner at PricewaterhouseCoopers LLP.

The information from the IAB/PWC is considered the most accurate measurement of interactive ad revenue, the IAB says, because its compiled directly from info supplied by companies selling advertising on the web. The IAB releases a full report twice a year to reflect half-year periods. It will be interesting to see how the second half of the year plays out in its entirety.

Have You Read This?

> Online Advertising is Having a Big Year

> Online Ad Revenue Tops $10 Billion

> IAB Releases Ad Unit Guidelines Update

IAB Releases Ad Unit Guidelines Update

The Interactive Advertising Bureau (IAB) released the 2009 update to its ad unit guidelines today. For the first time, the IAB is bringing in creative agencies for input on ad unit recommendations. Historically, these have only come from media agencies and publishers.

"By bringing agencies into the process of developing standard ad units, we have taken a step towards improving the creative output and branding potential for interactive media," says Randall Rothenberg, President and CEO of the IAB. "Our next order of business is to drive towards adoption of revised standards that we believe will spur increased investment in interactive advertising—we’ve already proven that there is no medium more accountable—now we have to bring all of its capabilities together to tell great stories to consumers—that’s what advertising is all about."

"Being a part of this process gave voice to the creative challenges that agencies faced with the existing standards, ad units, and technologies, and I believe we’ve found a solid way forward in overcoming those challenges," said Jim Russell, Partner, EVP, Director of Digital Strategy, McKinney. "Our goal was to simplify the existing list and I think we’ve developed a long-term strategy for doing this on behalf of the industry."

The working group created by the combination of creative agencies, media agencies, and publishers is called the Reimagining Interactive Advertising Task Force. The group has updated the criteria for standard ad units. It did so by looking at industry-wide impression count reports, ad unit availability, agency-side effectiveness reviews, and creative preferences. Two recommendations they made are:

- In order to be considered a standard, an ad unit must be commonly bought and offered throughout the marketplace; only seven of the eighteen ad units currently on the list meet the new criteria.

- Ad units will not be removed from the standard list in 2009, but must meet the criteria by the end of 2010

The whole IAB Ad Unit Guidelines update can be found here. Next year, the Task Force will release the first list of ad units.

Have You Read This?

> Marketing Best Practices for Long Form Video

> 7 Behavioral Targeting Privacy Principles

> IAB Announces Guidelines for In-Game Ad Standards

> IAB Releases Social Advertising Best Practices

> IAB Rolls Out Click Measurement Guidelines

> IAB Releases Definitions for Social Media Ad Metrics

> IAB Releases Video Ad Guidelines

 

IAB Releases New Guidelines for Email Monetization

The Interactive Advertising Bureau (IAB) has released a list of "best practices" for marketers and publishers who want to monetize their email efforts. The best practices come in a document appropriately titled "Email Monetization Strategies."

The IAB considers this part of its ongoing efforts to establish a "solid foundation" of guidance and tools for the email marketplace. It provides publishers, agencies and marketers with recommendations and best practices for the successful execution of email marketing campaigns.

The document covers:

- The use of email newsletters to reach valuable audiences
 
- Stand-alone email advertising to drive sales and site registration

- Revenue opportunities and pricing models for email newsletters and stand-alone email advertising
 
- Descriptions of emerging trends such as video in email campaigns

"The email channel offers a unique opportunity to reach consumers with relevant, differentiated and personalized content and messaging," said Sherrill Mane, SVP, Industry Services, IAB. "Email Monetization Strategies provides an in-depth assessment and guide to maximizing the success of email marketing."

"Email is one of the most effective direct and brand marketing mediums," said Sean O’Neal, Chief Revenue Officer, Datran Media, and co-chair of the IAB’s Email Committee. "These best practices provide the latest information and strategies to marketers and publishers so that they can maximize their email communications with their customers."

In case you think email is on the way out due to spam or social media, read the reasons why we don't believe that is the case here and here.

Have You Read This?

> Marketing Best Practices for Long Form Video

> 7 Behavioral Targeting Privacy Principles

> IAB Announces Guidelines for In-Game Ad Standards

> IAB Releases Social Advertising Best Practices

> IAB Rolls Out Click Measurement Guidelines

> IAB Releases Definitions for Social Media Ad Metrics

> IAB Releases Video Ad Guidelines

Key Perspectives on the FTC Blogger Guidelines

An interesting development has occurred in the story of the controversial FTC guidelines for sponsored blogging/social media. The Interactive Advertising Bureau (IAB) has called upon the FTC to rescind the blogger rules, and has questioned the constitutionality of them. As you may know, there have been a lot people calling them an infringement on free speech.

The IAB says the rules unfairly and unconstitutionally impose penalties on online media for practices in which offline media have engaged for decades. In an open letter to FTC Chairman Jon Leibowitz, Randall Rothenberg, the President and CEO of the IAB, called the FTC’s distinction between offline media and online media, "constitutionally dubious."

"What concerns us the most in these revisions is that the Internet, the cheapest, most widely accessible communications medium ever invented, would have less freedom than other media," he said. "These revisions are punitive to the online world and unfairly distinquish between the same speech, based on the medium in which it is delivered. The practices have long been afforded strong First Amendment protections in traditional media outlets, but the Commission is saying that the same speech deserves fewer Constitutional protections online. I urge the Commission to retract the current set of Guides and to commence a fair and open process in order to develop a roadmap by which responsible online actors can engage with consumers and continue to provide the invaluable content and services that have so transformed people’s lives."

Rothenberg's letter can be read here in its entirety. The FTC's guidelines are set to go into effect at the beginning of December.

WebProNews attended a keynote at the BlogWorld Expo this week, which dealt with the FTC's forthcoming regulations. Among the speakers were Ted Murphy, CEO of the controversial IZEA, the company known for PayPerPost and sponsored tweeting, Wendy Piersall of Sparkplugging.com, Jennifer Leggio, a blogger for ZDNet and Lisa Rotkin, an attorney from LA. Interestingly, about 60% of people in the room were for sponsored tweets, with very few indicating that they were against it.

Rotkin says the guidelines clarify the definition of endorsement, and that the FTC believes it has to be authenticated. She says that the blogger is as much liable as the advertiser, although recent comments from the FTC indicate that they are more concerned with the advertisers. She notes that bloggers would have to disclose relationships, but points out that there's a gray area in how to disclose.

There are also gray areas in what is actually considered to be a sponsored post. In the session, it was said that there are 8 forms:

1. Access
2. Incentive
3. Thank you
4. Product demo
5. Advertorial
6. Paid Reviews
7. Junket
8. Payola

Rotkin says that sponsored posts aren't right for everyone, but in some cases they are appropriate. However, she believes that bloggers aren't looking at the long term.

Piersall says that people are able to disclose very well, and there are consequences if they do it wrong. She notes that she has no control over people's perceptions, whether she is being sponsored or not.

Murphy, who was wearing a shirt that said "I heart the FTC" said his company has been under a lot of attack because they monetize people.

Leggio says being a popular social media/blogger person is different than being a celebrity. She says sponsored blogging doesn't help relationships. "Do you want a spokesmodel or a thought leader?" she asked.

The character limit of Twitter is a subject that is often brought up in the FTC regulations discussion. How do you disclose on Twitter? Jeremiah Owyang, who moderated the session, doesn't think a hashtag like #ad is enough. Murphy thinks having "tools for disclosure" is the only way. It's unclear what these tools are exactly.

WebProNews reporter Abby Johnson contributed to this report from BlogWorld.

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