Search ads hot, online ad budgets will grow

From New Media Group of PricewaterhouseCoopers and the Interactive Advertising Bureau: keyword search accounted for 35 percent of all online advertising in 2003, up 15 percent from 2002. Two biggest categories in 2002 — banner ads and sponsorships — were down as a percentage, though actual dollars spent in each category grew. Overall online ads were up 21 percent to 7.3 billion More details at Center for Media Research.

Another big area of growth was ads sold based on performance-based pricing. Ads sold on hybrid prices fell significantly and CPM/Impression pricing fell slightly in 2003 from 2002.

Jonah Bloom, executive editor of Advertising Age writes about online ad-budget growth: “It might be a 3% or 4% ad medium by share of budget today, but it’s at a tipping point and there’s every reason to think it will be a 10% medium within the next two years.”

Will RSS Readers Clog the Web?

Wired News: Will RSS Readers Clog the Web?

As RSS feeds proliferate (almost every major American newspaper site and blog has one) and as more and more Internet users adopt readers, websites and bloggers are starting to feel the weight of thousands of hourly pings.

Bloglines tries to be a nice aggregator, hitting sites only once an hour and then serving the feeds to readers through its computers, says Mark Fletcher, chief executive of Bloglines in the article. The potential problem is from RSS readers residing on individual computers hitting sites at the same time.

Google changes ad buying

The curtain has been lifted on Google with its planned IPO.

Now we see that Google has been very successful selling ads targeted to readers’ searches. It sold $658 million in advertising last year, passing Yahoo!, which sold $638 million and was the previous leaders in online sales.

“(T)he striking success of its Internet advertising business poses perhaps an even greater threat to Madison Avenue” is the lead to today’s N.Y. Times article: “Google Poses a Challenge for Usual Ad Outlets.”

“(A)dvertisers are finding they can attract buyers relatively cheaply without a blaring message and an expensive Madison Avenue agency to create it.”

It sounds so simple: Readers come to Google looking for something specific and are ready to look at ads about those things.

Google’s success further explains why search ads are hot. Ad revenues of Google and Yahoo! together are about 18% of the $7.3 billion online ad market estimated by New Media Group of PricewaterhouseCoopers and the Interactive Advertising Bureau.

It’s the gurus’ fault

Ron Rosenbaum says management-theory gurus have helped create the type of editors that allowed the Jason Blair and Jack Kelley scandals at the N.Y. Times and US Today.

“There seemed to be no understanding that calling a newspaper a ‘brand’ moves things backwards to precisely the thinking that allowed Jack Kelley to thrive — protected because he was the public face of a ‘brand,’ not a newspaperman whose facts are subject to review.” Rosenbaum writes for The New York Observer.

“Who is going to be the editor brave enough to sic some reporters on the corporate consultants who ar jargonizing the integrity of newspaper culture away?”

I don’t think Rosenbaum would care much for the next Notes item: What’s going to be hot next?

Previous Notes on US Today and N.Y. Times: here and here.

What’s going to be hot next?

MediaPost looks at four new ad models on the internet: social networking (both work and play), local search, blogging, and broadband video.

Interesting that RSS (webfeeds) didn’t make the list. I’ve noticed that the ads inserted in the RSS feeds of InfoWorld have disappeared, at least for now. Finding ways to financially support RSS feeds is crucial for publishers.

MediaPost article also looks at what used to be hot: online communities, push, pay-to-surf (paying users to view ads); and ad-supported access. Tip from E-Media Tidbits.

Google News is finalist in news site award

The blog Holvaty says Google News deserved being a finalist in this year’s ESpy Awards.

“Please note my bias as a professional programmer, but I’d say a news application developed by computer scientists is just as deserving of journalism awards as a collection of news stories produced by traditional journalists,” he writes.

The list of this year’s finalists is here and winners will be announced May 12.

If Google is a finalist this year, will Topix be a finalist next year?

Both sites should worry local newspapers and TV stations. Google News and Topix give traffic and take traffic from local sites. They drive traffic when people click from a link, but reduce the need to go as many individual local sites. Long-term, I think will siphon away most site’s traffic.

Make headlines the first priority

Headlines are key in online stories. The headline is often the only way a reader can decide whether to click on the story or not.

Headlines are too often written at the end of the process rather than the beginning. Readers read headline, lead and then the rest of the story. Too often reporters write lead and story, then someone else writes the headline.

Breathe life into headlines” at Poynteronline. In a presentation at the March 2004 American Copy Editors national conference Jenny Montgomery, local news editor for HoustonChronicle.com offers these suggestions (near the bottom of the article):

? be specific enough to hook readers
? have key words that refer to past stories in the news that are on people’s minds during watercooler chat
? be written in a conversational tone
? be simple and straightforward
? give the pertinent information since online hedlines don’t typically follow newspaper design strategies such as drop heds
? find a blend of sensationalism and exaggeration
? use “magic” words that everyone is curious about (e.g., babies, spam, the Web, viruses, taxes, reality TV).

Also another proponent of well-written headlines is Howard I. Finberg’s “How Headlines Can Help“. Best line: I believe that websites are missing an opportunity to attract and retain website visitors with better and more interesting headlines.