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Instagram Fastest-Growing App Among Top 10 In 2013

1/21/2014

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by Mark Walsh, Friday, January 17, 2014

Facebook was the No. 1 app overall in 2013, but its photo-sharing subsidiary Instagram was the fastest-growing app among the top 10.

With an average of 103.4 million unique visitors last year between January and October, Facebook had easily the largest U.S. audience of any app, with traffic up 27% from 2012. But that growth rate paled in comparison to Instagram -- acquired by the social network in 2012 for $1 billion -- which saw its app audience surge 66% to 32 million last year, according to Nielsen data.

That’s partly a result of starting from a smaller base, but the comparison with Facebook won’t do anything to dispel the growing perception that the growth in social media -- especially among teens -- is shifting to single-purpose or messaging apps, including Instagram, Snapchat, Whatsapp, Whisper and others.

Instagram also outpaced Twitter, the No. 10 app that grew 36% to 30.7 million last year. How Instagram’s growth translates into ad sales should start to become clear this year, with advertising in the app just launched at the end of 2013. In a recent research note, JPMorgan analyst Doug Anmuth suggested, however, that advertising will continue to roll out slowly on Instagram this year, not contributing significantly to Facebook’s overall revenue.

Close on Instagram’s heels in terms of growth was Apple’s Maps app (No. 8), which increased its audience 64% to nearly 32 million. That gain highlights Apple’s success in luring back irate users after its disastrous launch in iOS 6 in 2012. That isn’t to say it can match the cross-platform reach of Google Maps, which last year boasted 68.6 million uniques, reflecting 14% growth.

Indeed, Google apps -- which also include Search, Play YouTube and Gmail -- made up half the top 10 apps in 2013, pointing to the ubiquity of the Android OS. The Google platform ran on more than half (52%) of U.S. smartphones in November, according to the latest market share data from comScore.

The increase in mobile adoption overall drove down desktop traffic in 2013 compared to the prior year for each of the top 10 Web sites, according to Nielsen. Google -- the No. 1 site, with an average online audience of 164.8 million last year -- saw traffic drop 6%, while Facebook’s fell 16% to 135 million, and Yahoo’s 9% to 129.8 million.

Among the top 10, the Ask Search Network suffered the biggest decline, falling 16% to 64.2 million. YouTube, the top video site in 2013, also saw a dip in its audience -- slipping 6% from 2012 to 128.4 million, but still far ahead of No. 2 Vevo, with 37.2 million, down 9%. No. 3 video property Yahoo saw traffic fall 8% to 35.4 million. 


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Rentrak Gets CBS' Rating, Becomes First Broadcast Net To Use It As 'Currency'

1/17/2014

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by Joe Mandese, Thursday, January 16, 2014

In an important vote of confidence for the Nielsen TV ratings rival, CBS has signed a contract to begin using Rentrak’s “advanced demographics” ratings as a form of TV advertising “currency.”
The timing of the deal is significant, because it comes as Madison Avenue begins planning for the 2014-15 network upfront buying season, and when it's beginning to look like Nielsen is approaching global domination of the rest of the media audience measurement business.

While Rentrak has signed contracts with numerous agencies and broadcast groups to date, CBS is the first of the major broadcast networks to begin utilizing Rentrak's TV Essentials service as an official part of the audience data it utilizes to negotiate and guarantee advertising deals with agencies and advertisers.

The agreement, which includes a subscription for CBS’ sister network, CBS Sports Network, was described as “a major advancement” by Rentrak, which said CBS will also have access to its automotive audience data, including hourly ratings delivered against more than 230 networks and automobile make/model purchase behaviors.

“As more advertisers move beyond age/sex demographics for their media buying, there’s been a shift to combine viewing data with product-purchase data to create comprehensive evaluation tools,” stated David Poltrack, chief research officer of CBS, who has been a long-time proponent of the shift from demographics to consumer purchasing behavior data.

“Working with Rentrak, our goal is to advance this transition to a new era in television advertising execution,” he added.


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Twitter Adds Targeting By Email Address, User IDs

1/17/2014

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by Mark Walsh, Tuesday, January 14, 2014

Twitter on Tuesday announced the ability for marketers to target ads more precisely on the site using customer email addresses or users’ Twitter ID information.

The new targeting options mark an expansion of the tailored audiences program the company introduced last month for retargeting users, based on expressed interests in particular brands or categories by bringing their own or third-party data.

One of the additional ways to create audiences rolled out today allows marketers to use their own lists of customer email addresses to retarget them on Twitter or use CRM database records previously stored with an ad partner. Similar to how Custom Audiences work on Facebook, email addresses would be sent to Twitter as hashes -- unreadable alphanumeric strings -- for matching against its database to find the appropriate users.

In a blog post today, Kelton Lynn, product manager, revenue at Twitter, gave the example of a fashion retailer that wants to advertise a spring clearance sale on the site, but is opting to show the ad only to current loyalty cardholders.

The other new approach for audience targeting is to use lists of Twitter IDs -- either user names or the unique number that identifies a Twitter account -- to reach new prospects. The same fashion retailer could leverage public data on Twitter including a user’s bio, follower count, verified status or past tweets to glean specific accounts that are best suited to receive a particular ad or offer.

“The retailer would then use this list of Twitter ID’s to create a tailored audience through an ads partner, show those fashion influencers a Promoted Account and engage them as followers,” stated the post. Twitter is also allowing marketers to exclude certain CRM and user ID audiences from the set of users it wants to reach through existing targeting options tied to interests, keywords and TV.

If the retailer is running a new customer acquisition campaign aimed at Twitter users who are interested in fashion and style, it can use the loyalty cardholder audience to remove anyone who fits that interest category but is already a loyalty member.

Advertisers will continue to receive the same reports showing the number of users who viewed, clicked on or converted from an ad, without identifying individual users.

For the CRM-based ads, Twitter said it’s working with several third-party data providers -- some of whom also work with Facebook -- including Acxiom, Datalogix, Epsilon, Liveramp, Mailchimp, Merkle and Salesforce ExactTarget. The company will also allow marketers to use its Ads API to create both CRM- and Twitter ID-based audiences.

What about privacy concerns raised by the more direct targeting methods? Lynn explained in the blog post that Twitter users can uncheck the box in their privacy setting next to “Tailor ads based on information shared by ads partners,” and Twitter won’t match their accounts to information from its ads partners for tailored audiences.

Twitter also sets a minimum audience size for all tailored advertising to avoid overly specific targeting. 

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Native Advertising Predicted To Dominate Digital In 2014

1/13/2014

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by Gavin O'Malley, Thursday, January 9, 2014

Say goodbye to the stigma associated with native advertising.
 
Following The New York Times’ official embrace of the once-controversial ad format, J.P. Morgan is predicting that native will take over digital channels in 2014.
 
“We believe native ads are quickly becoming the de facto ad format on mobile and increasingly moving into desktop,” lead analyst Doug Anmuth wrote in J.P. Morgan’s annual “Nothing But Net” report, released on Thursday.
 
It is significant that Anmuth and his colleagues are tying the success of native to mobile, considering that they expect ad dollars devoted to the channel to overtake desktop dollars this year.
 
As for what makes native ads so special, J.P. Morgan calculates that they deliver a huge bang for the buck. Indeed, according to the securities firm, native ads represented just 5%-to-10% of Facebook’s impressions in 2013, but accounted for more than 60% of the company’s revenue.
 
“We think native ads also have significantly higher click-through rates than traditional display ads, which leads to higher pricing over time,” according to Anmuth.
 
But, what makes native so well-suited for the mobile medium? “Native ads are ads embedded in a [Facebook] NewsFeed or [Twitter] stream and in many cases closely resemble organic content, making them much more likely to get clicked on compared to historical banner display ads,” according to Anmuth and his team.
 
As a result, “we believe a growing interest in mobile advertising from brand advertisers coupled with improving mobile ad formats suited for smaller screen sizes should help to bridge the gap between time spent on mobile and mobile marketing spend.”
 
Moreover, “while the majority of Facebook and Twitter ad revenue is now generated through native or feed ads, we believe other publishers, such as LinkedIn and Yahoo, are also increasingly shifting inventory to the format.”
 
Last year, eMarketer predicted that the native niche would hit $2.85 billion by 2014. Yet industry thought leaders have implored publishers and brands to rethink their use of native advertising.
 
“Publishers should say ‘no,’ more than ‘yes’ to native,” Steve Rubel, executive vice president of global strategy and insights at Edelman, told attendees an the OMMA Native conference, in November. “As an industry, we’re going way too fast.”


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