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Archive for June, 2009

YouTube Is Site Number 1 For Advertising

The Nielsen report has released the information that Youtube’s online advertising revenues have grown 57% in the last two years, being this first quarter of 2009 the highest increase of the period.

The Consumer Goods companies have spent more money than before in this two years gap. This means that sales revenue went from $99.8million in the first quarter of 2007 to $156.2million in 2009 first quarter.

Mr. David Wiesenfeld, Vice President commented on the subject:“While direct response advertising has been very successful on the Internet, with categories like finance and travel devoting a significant portion of their budget to online advertising, on-line advertising will not continue to grow as rapidly without major brands beginning to devote larger portions of their ad budgets to the Web.”

He also added that they’re starting to see this to happen now with Consumer Packaged Goods companies.

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Cables Will Have a New Online Ad Format

There’s has recently been released the news that PointRoll and Tribune Media Services are going to launch an innovating online ad system.

This new system will be known as Channel Finder and it will allow users browsing the Internet the possibility to tune-in for information.

Apparently, representatives from the Discovery Channel, as well as the MLB Network, are two of the first companies to be registered to use this service. The new system will display video clips, interviews, interactive polls and games to capture viewer’s interest in other programs as well.

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Yahoo and Google Fight To Be Number 1

In a time of recession, the two giant search engines, Google and Yahoo, are fighting face to face to gain in the market for online advertising.

This past Monday, June 22nd, Yahoo unveiled what they called a “self-serve display advertising service”. This service will let business to create their own online ads. Yahoo is targeting small and local companies in need to promote their services.

On the other hand, Google is starting to test a new type of online ad that will feature product pricing and image.

The main idea is to show a richer product in the ads for those users that shop online regularly. These ads will be display only to certain users searching for specific products.

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Facebook’s Online Ads Increase

According to a new report that the social network Facebook Inc. has released, they have commented that the number of customers using their automated online-advertising system has tripled since last year.

The ads offer by Facebook Inc. are used by small and medium businesses in need to promote their services using text and photos.

Tim Kendall, Facebook’s director, commented about this new style of advertising that:”You basically just have a greater diversity of people using our ad system — lots of businesses, lots of local businesses finding success. “It’s really been a steady, successful growth pattern.”

Mr. Kendall refused to provide any revenue information; however, he has happy to announce that the automated online-advertising system was more profitable than last year.

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MySpace Cuts Online Ads

It’s known that all the social-media websites’ prime goal is to share, but in the social-media industry is all about winning to be number one in the market and not to share.

There is major competition in a region of online business dominated with powerful companies. Facebook, MySpace and now Twitter are all competing for the attention of the same users. Recently, however, MySpace has seen some setbacks with traffic which is being blamed on their heavy use of advertising.

Facebook’s relative lack of intrusive ads have helped it to gain more footing against its arch rival, according to analysts.

It is okay to have online ads on websites, they say, but subscribers from MySpace have been turned off by the intrusive and smothering manner in which the site has inundated them.

Mr. Owen Van Natta, CEO of MySpace said in a memo to staff: “Simply put, our staffing levels were bloated and hindered our ability to be an efficient and nimble team-oriented company.”

This past March, Van Natta commented on a report that he knew Facebook’s “clean design with little advertising clutter” influenced its rapid growth. MySpace is in the process now of cutting back on its advertising.

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Microsoft Online Ads Lawsuit

Microsoft is suing three people from Vancouver whom have committed click fraud by improperly manipulating Microsoft’s online advertising.

The three defendants are a family consisting of two brothers and a mother. The brothers Eric and Gordon Lam and the mother Melanie Suen made more than $250,000 in profits. However, Gordon Lam denies the existence of any lawsuit with Microsoft.

Representatives from Microsoft commented that since last year they’ve being monitoring the waves of fraudulent clicks on advertisements. They found out about the Lam brothers and his mother after a long search that lead them back to the family as the main source of the fraud, allegedly.

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New Zealand’s Online Ads Increases

As ironic as it could sound, New Zealand has reported a significant increase in online ads compared to 2008.

The New Zealand Interactive Advertising Bureau has recently reported that during this first quarter of 2009, the country has had a strong growth in comparison to the first quarter of 2008.

Last year’s traditional advertising media was down 10%, however, the auditor company PriceWaterhouse Coopers has revealed the information that the first three months of 2009 online ad spending increased 7.99%. In the quarter there was a total revenue of $46.26 million above the numbers of the same period in 2008.

“The IAB’s trailing 12-month total for NZ’s online ad spend has now hit an all-time high of $196.55 million.”

Apparently, New Zealand’s market is hot and one worth looking into.

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Senator Reid invests on Online Ads.

In a time where everybody uses internet to buy, sell and even meet people, the online ads are being used by major companies to promote their business, but online ads are also used by politicians.

The U.S. Senator Harry Reid is using online ads for his 2010 re-election campaign. The ads were placed on Google at the beginning of June. When a user from Nevada is searching the web, the Reid’s ads appear as a series of sponsored links.

The interested side of Reid’s ads is that users are re-directed to a new website where they can read an article or interview about Senator Reid. Users don’t know that they’ve been sent there because of a online paid ad.

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Ads Renaissance

In the Wired’s Disruptive by Design first business conference, Mr. Tim Cadogan, CEO of OpenX, commented: “In the next year or two, you’re going to see an online renaissance in online advertising”

Mr. Cadogan used to work as an executive for Yahoo, but he resigned last year to begin his new carrier as the CEO of OpenX. The main purpose of this business is to provide “ad publishers with free, flexible core software publications that people can build and tailor to reach their company’s target audience.”

He strongly believes that publishers will be able to develop better ads with the use of videos, games and the entire media. However, Mark Shuttleworth, founder of the operating system Ubuntu, commented in the conference that he disagrees with Mr. Cadogan.

Finally, Mr. Shuttleworth commented that:”Advertising is not the answer for all business models.” However, Cadogan has received $10 million from investors in the hope that this model will work.

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Viruses on Web Ads

The Wall Street Journal has recently posted an article about the Digital Spy in which it explains how some of the ads posted on the website had viruses.

The British entertainment and media news website’s advertising system was hacked. This is not the first time that websites’ ads have contained viruses.

Mr. Ben Edelman, an assistant professor at Harvard Business School who researches Web security issues has commented that “the system is only as safe as its least secure members, and some of these members can be strikingly insecure.”

In February 2009, other sites have found out that there were ads on their websites that they hadn’t placed on them. The big search engines such as Google, Microsoft and AOL reported that they have been working on this issue.

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