Google’s Economic Impact Report: Just A PR Ploy?
Today Google announced that it had generated $54 billion worth of economic activity in the US in 2009. The report, which shows state by state economic contribution, bases Google's total value on three factors: 1) Sales driven through AdSense and AdWords; 2) Ad revenue generated for publishers through AdSense; and 3) Google grants. As a research analyst, I'll admit that you can make numbers tell any story you want to, and my gut here is that this report is principally a PR effort to: 1) Communicate some altruism about the Google brand that has been getting some bad press of late; 2) Simplify the complex transformation Google has brought to advertising into a simple, single number; 3) Shift the focus away from questionable strategic decisions that Google has recently made. I wholeheartedly believe that Google has transformed advertising and is almost singularly responsible for the phenomenon of biddable media buying which I think will ultimately replace relationship-facilitated media buys across channels. But I don't believe that Google stimulated $54 billion worth of business. I think what Google did do is provide a new revenue stream to small businesses and site owners, catalyze some new sales, and take a share of commerce and media expenditures that would have happened anyway.
Join Forrester’s New Online Community For Interactive Marketers
Hot on the heels of our new blog platform, Forrester has launched an online community for interactive marketers focused on the key business challenges that interactive marketers face every day. The community is a place for interactive marketers to exchange ideas, opinions, and real-world solutions with each other. Forrester analysts will also be part of the community, helping facilitate the discussions and sharing their views.
The community is open to all interactive marketers, whether you’re a Forrester client or not.
Here’s what you’ll find:
- A simple platform on which you can pose your questions and get advice from peers who face the same business challenges.
- Insight from our analysts, who weigh in frequently on the issues.
- Fresh perspective from peers, who share their real-world success stories and best practices.
-
Content on the latest technologies and trends affecting your business — from Forrester and other thought leaders.
I encourage you to become part of the community:
- Ask a question about a complex business problem.
- Start a discussion on an emerging trend that’s having an impact on your work.
- Contribute to an existing discussion thread from a community member.
- Suggest topics for upcoming Forrester research reports.
- Create a community profile.
-
Share your perspective with others.
Click here to go to Forrester’s Online Community For Interactive Marketing Professionals and bookmark it for easy reference. See you in the community.
Join Forrester’s New Online Community For Interactive Marketers
Hot on the heels of our new blog platform, Forrester has launched an online community for interactive marketers focused on the key business challenges that interactive marketers face every day. The community is a place for interactive marketers to exchange ideas, opinions, and real-world solutions with each other. Forrester analysts will also be part of the community, helping facilitate the discussions and sharing their views.
The community is open to all interactive marketers, whether you’re a Forrester client or not.
Here’s what you’ll find:
- A simple platform on which you can pose your questions and get advice from peers who face the same business challenges.
- Insight from our analysts, who weigh in frequently on the issues.
- Fresh perspective from peers, who share their real-world success stories and best practices.
-
Content on the latest technologies and trends affecting your business — from Forrester and other thought leaders.
I encourage you to become part of the community:
- Ask a question about a complex business problem.
- Start a discussion on an emerging trend that’s having an impact on your work.
- Contribute to an existing discussion thread from a community member.
- Suggest topics for upcoming Forrester research reports.
- Create a community profile.
-
Share your perspective with others.
Click here to go to Forrester’s Online Community For Interactive Marketing Professionals and bookmark it for easy reference. See you in the community.
Facebook, Privacy, And How It’s Affecting Facebook’s (and Marketers’) Future
Image by Getty Images via Daylife
It’s no secret that Facebook is facing a privacy backlash. . . again. Headlines ask if Facebook is at a tipping point, and many people give Facebook low grades for the way it has handled user privacy.
Despite the buzz about several high-profile people abandoning the social network, Facebook isn’t facing an immediate or meaningful problem with defections. There is little evidence that significant numbers of people are defecting, and the impact of a couple of high-profile deleters is minimal. Facebook’s value to users isn’t to connect with movers and shakers like Leo Laporte but with friends and family. In fact, Facebook isn’t shrinking but growing; despite a handful of deletions, Facebook has seen a net gain of 10 million active users since the new privacy changes were rolled out at the f8 conference.
Forrester’s European Online Ad Forecast: Rich Formats Will Push Display Ad Spending Higher While Search Growth Will Slow
One of the first tasks I settled on when I returned to Europe this year was to update our online ad forecast. After months of research, I’ve just published that report, ‘Western European Online Advertising Forecast Through 2014’ – and I’m happy to say that overall, the picture that’s developed is one of an industry returning to health. 2009 wasn’t a great year for the market, but thanks to a strong fourth quarter it wasn’t the terrible year everyone was expecting either – and more importantly, it looks like the weakness was a short-term blip rather than the beginning of a prolonged market slide. Western European online ad spending – which we define as the total of display ad spending and search spending in 17 countries – totalled €9.6 billion in 2009, and will grow to €13.9 billion in 2014.
When you dig a bit deeper, however, it becomes clear that different sectors of the market will have differing fortunes over the next five years. We think the big story between now and 2014 will be online display advertising. After a year of stagnation in 2009 – when it grew by just 1% across Western Europe – we think display is starting to look as healthy as ever. With huge advances in targeting helping response marketers deliver their ads to the right users, and with rich ad formats convincing brand marketers to shift more of their budget online, display will grow by 4% in 2010 and hit double-digit annual growth by 2013.
How Forrester Defines Western Europe
Because I’ve just published a new Western European forecast – and because I often get asked how we define which geographies we cover – I thought I’d clarify what we mean by "Western Europe." As of May 2010, Forrester defines Western Europe as the following 17 countries (listed here alphabetically):
- Austria
- Belgium
- Denmark
- Finland
- France
- Germany
- Greece
- Ireland
- Italy
- Luxembourg
- Netherlands
- Norway
- Portugal
- Spain
- Sweden
- Switzerland
- UK
Put another way, when we talk about Western Europe, we’re talking about the old EU-15 plus Switzerland and Norway.
Facebook, Privacy, And How It’s Affecting Facebook’s (and Marketers’) Future
Image by Getty Images via Daylife
It’s no secret that Facebook is facing a privacy backlash. . . again. Headlines ask if Facebook is at a tipping point, and many people give Facebook low grades for the way it has handled user privacy.
Despite the buzz about several high-profile people abandoning the social network, Facebook isn’t facing an immediate or meaningful problem with defections. There is little evidence that significant numbers of people are defecting, and the impact of a couple of high-profile deleters is minimal. Facebook’s value to users isn’t to connect with movers and shakers like Leo Laporte but with friends and family. In fact, Facebook isn’t shrinking but growing; despite a handful of deletions, Facebook has seen a net gain of 10 million active users since the new privacy changes were rolled out at the f8 conference.
Forrester’s European Online Ad Forecast: Rich Formats Will Push Display Ad Spending Higher While Search Growth Will Slow
One of the first tasks I settled on when I returned to Europe this year was to update our online ad forecast. After months of research, I’ve just published that report, ‘Western European Online Advertising Forecast Through 2014’ – and I’m happy to say that overall, the picture that’s developed is one of an industry returning to health. 2009 wasn’t a great year for the market, but thanks to a strong fourth quarter it wasn’t the terrible year everyone was expecting either – and more importantly, it looks like the weakness was a short-term blip rather than the beginning of a prolonged market slide. Western European online ad spending – which we define as the total of display ad spending and search spending in 17 countries – totalled €9.6 billion in 2009, and will grow to €13.9 billion in 2014.
When you dig a bit deeper, however, it becomes clear that different sectors of the market will have differing fortunes over the next five years. We think the big story between now and 2014 will be online display advertising. After a year of stagnation in 2009 – when it grew by just 1% across Western Europe – we think display is starting to look as healthy as ever. With huge advances in targeting helping response marketers deliver their ads to the right users, and with rich ad formats convincing brand marketers to shift more of their budget online, display will grow by 4% in 2010 and hit double-digit annual growth by 2013.
How Forrester Defines Western Europe
Because I’ve just published a new Western European forecast – and because I often get asked how we define which geographies we cover – I thought I’d clarify what we mean by "Western Europe." As of May 2010, Forrester defines Western Europe as the following 17 countries (listed here alphabetically):
- Austria
- Belgium
- Denmark
- Finland
- France
- Germany
- Greece
- Ireland
- Italy
- Luxembourg
- Netherlands
- Norway
- Portugal
- Spain
- Sweden
- Switzerland
- UK
Put another way, when we talk about Western Europe, we’re talking about the old EU-15 plus Switzerland and Norway.
Intercontinental Hotels: A Case Study In Customer-Centric Marketing
I just attended Unica’s annual Marketing Innovation Summit (MIS) this year in Orlando. I sat in on a few terrific conversations about making multi-channel marketing a reality. Here is the first: An overview of Intercontinental Hotel Group’s (IHG’s) use of data-driven marketing to improve communications with existing customers and prospects.
Lincoln Barrett, vice president for guest marketing and alliances, shared that, for IHG, building a customer-centric marketing strategy hinged on three different, but overlapping, initiatives:
- Invest in technology
- Expand into new frontiers
- Build a centralized customer organization
Each of these initiatives is still a work in progress, but excellent progress has already been made in each one.
Invest In Technology
Step one here was to build a new data warehouse and real-time data mart that would allow IHG to match the data it was gathering through proprietary and third-party sources to existing customer information. This step also made it possible to gain immediate access to data for analysis or campaign building purposes – a significant upgrade to IHG's previous functionality, which updated records in batches and only made data available some 30 days after a customer incident (like a hotel stay).
The next step was to expand outbound campaigns beyond email. Technology upgrades (using Unica) automated internal campaign processes, created localization capabilities (for franchisees to create programs customized to their locale and customer relationships), and integrated call center data and activities with outbound campaign management. As part of this step, IHG also streamlined its formerly multi-agency model into a single global agency.
