Re:NEW
 
March - April 2012

Volume 7
No. 3

Contents



What Technology Has Wrought in Eiler's 25 Years

 

 

Online Ad Revenues Hit Record $31.7B in 2011, Surpass

Cable TV 

       

  

  

 

 

 

 

 

 

 

 

 


Social Media

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Michigan - The Helping Hand State.
Find out how your business can apply for recovery money!

 

 
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About Eiler

Eiler Communications is a public relations and marketing communications firm in Ann Arbor, MI.  We specialize in new and traditional media marketing, serving established and emerging companies in the communications
technology, financial services, biotechnology and healthcare industries.




 

What Technology Has Wrought in Eiler's 25 Years

 

You get times along the way when it pays well to look back at where you have been in a business.  Eiler completed 25 years in March.  Here are some notable changes in that time. 

 

Newest technology in our inaugural year of 1987 was the fax machine with thermal paper rolls. They did not preserve well. Laser printers came to fore shortly after. Federal Express came onto the scene soon after. The U. S. Postal Service has abided ever since, but is not as widely used any longer. 

 

Any information needed on potential client's competitors had to be obtained by calling the companies. Editorial calendars were obtained by calling the magazines and asking for a media kit. When they arrived some days or weeks later, one had to sift through the information and transcribe into a useful document.

 

Phone, postage and Federal Express bills were astronomically high. Everything sent to a client was done by one of these means. Proposals were printed on stationery, bound in special binders and sent off. Today, with the inception of the Internet documents are sent in PDF format and received instantaneously.

 

The Internet and search engines have had stupendous impact on business. There

is hardly any information that is not readily available at the click of a search engine, usually Google.

 

Use of Vocus to compile media lists. An online service updated regularly that allows users to compile media lists with targeted search terms. Years gone by, manual research using Bacon's, a printed directory and then transposed.

 

Changes noted: Laser printers, color printers, virtually all companies having websites, cell phone usage, PDA's, voice mail, online publications, bloggers and podcasts.  Many new and instantaneous methods to send and receive information,  

 

CA office 1990. Employees used jobs as stepping stones, often working six months then going down the street to get $10K more.  Excellent office space.  Great client list. Difficult to manage from afar.

 

Biggest problem was managing people. Demands high for more benefits and shorter work weeks.  

 

Observations: California companies recognize they need PR to tell their stories from the inception of their companies. Midwest need education and are late to the game on recognizing what marketing and PR  do for them to tell their stories.

 

Reputation precedes all. Quality service, honesty, good counsel and fair pricing are the hallmarks of building a sound business,.

 

Eiler has always given back to the community. Sandy after breast cancer ran a pro bono campaign for The Breast Cancer Fund in San Francisco. 17 breast cancer survivors went to climb Mt. Aconcagua in Argentina to raise $2.3

million, akin to the 23,000-foot height of the mountain.

 

National, local and international media

attention including a documentary by Bill Kurtis on New Explorers. A subsequent visit to the White House followed. EC has also been heavily involved with Dawn Farms, Ann Arbor Art Center, IT Zone, Automation Alley, SPARK and Operation Never Forgotten.

 

Lots of advancement and greater abilities to achieve due to new technologies.

 

Larry Eiler 

 

 

 

 

 

 

 

 

 

  

 


 

 

Online Ad Revenues Hit Record $31.7B in 2011, Surpass Cable TV

Internet advertising revenues reached a record $31.74 billion in 2011, representing a 21.9% increase from $26.04 billion in 2010, according to figures released in April by the Internet Advertising Bureau and Pricewaterhouse Coopers.   

 

This was the most rapid year-over-year growth since 2007 (26%), and drove online ad revenues past cable TV ad revenues (including national networks and local cable TV), which were $30 billion. Looking back over the past 10 years, the report notes that online ad revenues have a compound annual growth rate of 20.3%, with 29 of 36 quarters since 2003 seeing positive growth.

Search remained the top advertising format by revenue share, a position it has held since 2006. Search accounted for 46.5% of 2011 revenues, up almost 4% from 44.7% in 2010. In dollar terms, search revenues reached $14.8 billion, representing an increase of close to 27% from $11.7 billion the previous year.

 

Display-related ad revenues was the next-largest category, at 34.8% share, comprised of display banner ad (21.5%), rich media (4.1%), digital video (5.7%), and sponsorship (3.5%). Total display-related revenues were $11.1 billion, marking a 15% rise from $9.6 billion in 2010. While display banner ad and rich media both declined in their share of total revenues, digital video and sponsorship each saw roughly a 1% point increase in share.

 

Classifieds revenues accounted for 8.1% of 2011 revenues, down from 10% in 2010. In dollar terms, 2011 revenue was $2.6 billion, unchanged from the previous year.

 

Mobile took 5% share of the 2011 revenues, up from 3% in 2010. This was the fastest-growing category, rising 149% to $1.6 billion, from $641 million in 2010. Mobile revenues fueled 3.7% of the total online ad revenue growth of 22%.

 

The share of total revenues held by lead generation fell from 5.1% to 4.8%, although the dollar amount of lead generation revenues grew 15% from $1.3 billion to $1.5 billion.

 

Email revenues accounted for the smallest share of revenues, at 0.7%, unchanged from 2010, with 9% growth in dollar amount from $195 million to $213 million.

 

Retail advertisers represented the largest vertical in terms of internet ad spending, at 22% share, slightly up from 21% last year. Retail industry spending in 2011 stood at $7.1 billion, up 21% from $5.5 billion a year earlier.

 

Financial services was the next-largest vertical, at 13% share, or $4.1 billion, up from 12% share (and $3.2 billion in spending) in 2010. Financial services overtook telecom, which fell from 13% share in 2010 to 12% share in 2011, although spending rose from $3.5 to $3.9 billion.  

 

Automotive advertisers (11%; $3.5 billion) and computing advertisers (8%; $2.7 billion) rounded out the top 5 verticals, both with unchanged share of total revenues from 2010.

 

Leisure travel (8%), consumer packaged goods (6%), pharmaceuticals and healthcare (5%), media (5%), and entertainment (4%) were the other verticals comprising the top 10.

Other Findings

      

Ads using performance-based models increased from 61% to 64% share of the total revenues. Impression-based ad share of spend fell from 33% to 31%, continuing a decline begun in 2007.  

 

Hybrid ads accounted for the remaining 4% share of online ad revenue, which is significantly down from 13% share in 2005.

       

Performance-based pricing held 64% share of revenues in Q4, up slightly from 63% in Q4 2010. The CPM model held steady at 32% share, while hybrid decreased from 5% to 4% in that period.

      

Search accounted for 46% share of spend in Q4 2011, up from 43% in Q4 2010. Display-related advertising held 35.3% share, comprised of display banner ads (22%), digital video (5.5%), sponsorship (4.2%), and rich media (3.5%).

       

The online advertising space remained concentrated in Q4 2011, with the top 10 ad-selling companies accounting for 71% of total revenues, down marginally from 72% a year earlier. Overall, the top 50 companies commanded 90% of online ad revenues in Q4 2011.

 

 




Eiler Communications 900 Victors Way, Suite 180 Ann Arbor, Michigan 48108 Map
Phone: 734-761-3399 Fax: 734-761-3724