OPA Intelligence Reports

Of Note

Facebook 'Home' Will Be Great for Ad Data, But Bad for Brand and Media Apps (AdWeek)
Reactions are mixed to Facebook's unveiling of its home-screen replacer, “Facebook Home.” AdWeek's Christopher Heine, however, says there are two key reactions: that it's going to mean “weaker app presence for brands, and stronger data for Facebook.”

Henry Blodget says Business Insider is growing, but it’s still losing money (PaidContent)
Business Insider boasts some incredible traffic numbers, but financially, it's not looking as good. The New Yorker's Ken Auletta reports that the site lost $3 million in 2012.

Has Facebook Lost Faith in Social Ads? (AdAge)
Facebook seems to be doing an about-face on how it targets its ads.

What’s Next in Digital Advertising (Folio)
Joe Purzycki, vice president of advertising for Vox Media shares thoughts on the shift to native advertising, the weakness of programmatic ad buying and more.

“Recommended for you”: the fight to decide what you read next (PaidContent)
So-called “content engines” that recommend stories for readers have been around for a while but PaidContent's Jeff John Roberts writes that they're growing and wielding major influence. And, they could be an important player in the native advertising boom.

openquoteIt’s a mistake — at least from a purely financial perspective — to treat all readers equally. Some readers have a much greater propensity to pay than others; ideally, you want to extract a lot of money from those readers, while also allowing the vast majority of your visitors — the ones who will never pay you anything — to still consume your content and view the associated ads.closequote

Felix Salmon

How pay walls are evolving (Reuters)

By Mark Glaser & Courtney Lowery Cowgill

Pew report shows digital promise

Posted in News on 03/25/2013 | Comments ()

Pew Research Center’s annual State of the Media report sparked headlines thick with words like “challenges” and “dismal.” While legacy media continues to struggle, there’s a lot of good news in the report for online publishers. For instance, digital advertising grew in 2012 by 47 percent to $2.9 billion. And, overall, the report’s authors write, “Online was the only category of news that showed growth.” The report shows that publishers are evolving and finding new revenue streams. In fact, the report is quite optimistic on that front, saying that newspapers “have started to experiment in a big way with a…  Full article

By Mark Glaser & Courtney Lowery Cowgill

WashPo announces pay wall

Posted in News on 03/25/2013 | Comments ()

As the pay wall bonanza swept across the nation last year, there was always one holdout: the Washington Post. Not anymore. This summer, the Post will join some 450 other publishers in the country by putting at least some of its content behind a pay wall. Where the Post will differ here is how much – or actually, how little – of its content will actually be behind the wall and how few people will be on the other side of the wall. Readers will get 20 free articles a month (double what most other papers offer). And print subscribers,…  Full article

By Mark Glaser & Courtney Lowery Cowgill

NYT opens Ricochet to other pubs

Posted in News on 03/25/2013 | Comments ()

“Ricochet” is really the perfect name for the New York Times’ tool that lets advertisers attach their ads to specific articles as they hit social media. It’s all about the bouncing back and forth of traffic and attention, from the advertiser to the publisher. The advertiser gets an opportunity to grab stories as they become moving targets and, because brands then also promote those stories, the Times gets more traffic. It’s even more appropriately named now as the Times opens up the platform to other publishers, including AdAge, Condé Nast and Time Inc’s People. AdAge’s Jason Del Rey put it…  Full article

By Mark Glaser & Courtney Lowery Cowgill

FTC cracks down on sponsored tweets

Posted in News on 03/25/2013 | Comments ()

It’s been more than 12 years since the Federal Trade Commission issued guidelines for online ads. A lot has happened in 12 years, with the rise of smartphones and social media. So earlier this month, the FTC released a new publication, one with sharper teeth that clarifies that the prohibitions on “unfair and deceptive advertising” apply to all online advertising – including on social media and mobile devices. Basically it means that advertisers need to start being very overt in telling readers what is a paid ad, even if it’s a message on Facebook or a tweet from a celebrity.…  Full article

By Mark Glaser & Courtney Lowery Cowgill

Web video booms, but at what cost?

Posted in Research on 03/25/2013 | Comments ()

According to comScore, Americans watched 3.8 billion minutes of online video advertising in February. That’s 9.9 billion video ads. The comScore numbers show that on average, video ads reached more than 50 percent of the U.S. population 63 times in February. Video ads continue to break records and are on the upward trend everyone has predicted. The firm eMarketer estimates that spending on online video ads will climb beyond $4.1 billion this year. But as inventory soars, prices are dropping and that might hurt the average publisher. A recent Wall Street Journal headline summed it up pretty succinctly: “Web Video:…  Full article

By Mark Glaser & Courtney Lowery Cowgill

Local digital ad spend to climb

Posted in Research on 03/25/2013 | Comments ()

Digital revenue for local media is growing and taking a bigger share of overall revenue. And it will continue to climb over the next five years, according to a recent report from BIA/Kelsey. The firm expects local digital advertising to reach $25.7 billion this year and will hit $41 billion by 2017. That would mean that by 2017, digital ad revenue would account for 27.6 percent of the total local media spend – up from 17.4 percent in 2012. The report also finds that between last year and 2017, traditional revenue will drop from $109.4 billion $107.6 billion.

Overall,…  Full article

Of Note

Marketers Eager for Facebook Hashtags (ClickZ)
It's still just a rumor, but even the idea of hashtags on Facebook has marketers excited.

Meet the Most Suspect Publishers on the Web: The rise of ghost sites, where traffic is huge but humans are few (AdWeek)
Big name advertisers are spending millions on sites that don't have many real people in their audiences. Here's a list of the worst offenders.

Fake Pageviews Cost Online Advertisers More Than $6 Million Per Month (AdAge)
According to a web-analysis startup, more than 120,000 hijacked computers have been generating billions of fake ad impressions each month.

How Does Facebook Exchange Measure Up? (eMarketer)
Retargeting company AdRoll reports that its numbers suggest brands are increasingly moving their retargeting campaigns onto Facebook.

The FT has “crossed over” to become a digital business — but can anyone else replicate that feat? (PaidContent)
PaidContent makes the case that while the Financial Times is a an inspiration, it is not an example.

openquoteWe were told that people would never give us money [for the New York Times' digital subscriptions], that we priced it way too expensively … the fact that it was leaky was viewed as silly, the fact that you could do a workaround was viewed as silly. We did that on purpose. If you like it so much that you’re willing to do a hack around a URL just to get a peek under our dress … eventually you’re going to give us some money.closequote

David Carr

How David Carr views paid content (PaidContent)