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Why Advertising is Failing on the Internet

by admin on February 13, 2010

Why Advertising is Failing on the Internet
by Eric Clemons, March 2009

Advertising will fail for three reasons:

There are three problems with advertising in any form, whether broadcast or online:

Consumers do not trust advertising. Dan Ariely has demonstrated that messages attributed to a commercial source have much lower credibility and much lower impact on the perception of product quality than the same message attributed to a rating service. Forrester Research has completed studies that show that advertising and company sponsored blogs are the least-trusted source of information on products and services, while recommendations from friends and online reviews from customers are the highest.

Consumers do not want to view advertising. Think of watching network TV news and remember that the commercials on all the major networks are as closely synchronized as possible. Why? If network executives believed we all wanted to see the ads they would be staggered, so that users could channel surf to view the ads; ads are synchronized so that users cannot channel surf to avoid the ads.

And mostly consumers do not need advertising. My own research suggests that consumers behave as if they get much of their information about product offerings from the internet, through independent professional rating sites like dpreview.com or community content rating services like Ratebeer.com or TripAdvisor.

Read rest of article at TechCrunch

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Identity Theft Hits Record High

by admin on February 10, 2010

Identity theft hits record high
Criminals use social networks, online transactions to gather victims’ information.
By Elizabeth Strott on Wednesday, February 10, 2010 11:46 AM

http://articles.moneycentral.msn.com/Investing/Dispatch/market-dispatches.aspx?post=1619799&_blg=1,1620847

More people in the United States are falling victim to identity fraud.

A study by Javelin Strategy & Research showed that the number of victims jumped by 12% to 11.1 million adults in 2009, the biggest increase since the survey began in 2003.

“Identity fraud continues on the upswing and we believe it will continue to rise if consumers fail to take proactive steps to prevent fraudsters from taking advantage of their offline and online transactions and their increasingly exposed personal information on social networks,” said Michael Stanfield, CEO of Intersections (INTX), one of the survey’s sponsors.

“The findings of this Javelin report reinforce what we’ve been telling consumers for more than a decade — be vigilant with whom you are sharing your personal information and where you are sharing it. Protect your computer and only transact on confirmed legitimate websites,” Stanfield said in a press release.

The study said that total overall fraud rose by 12.5% to $54 billion.

Payment-card-related fraud is the most common type of crime, according to the study, with someone opening up a new account in the victim’s name. The perpetrator is often someone the victim knows, such as a family member or presumed friend, according to Javelin founder James Van Dyke.

The number of new credit card accounts opened fraudulently rose 39% in 2009, with new online accounts more than doubling, and the number of new e-mail payment accounts rising 12%.

Fraud on existing accounts rose 12%, with the vast majority occurring with credit cards.

The study also found that 29% of identity-fraud victims said that mobile phone accounts were fraudulently opened in their names.

One good thing in the report: less time to resolve identity crime. It takes 21 hours on average, down from 30 hours reported the year before.

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Mobile Advertising Forecast Increases

by admin on January 17, 2010

SUNDAY, JAN 17, 2010 09:00 EST
Smaller Startups to Fuel M&A Fire in Mobile Ads This Year
BY COLIN GIBBS

The mobile ad space continued to heat up last week with Amobee’s acquisition of RingRing Media, a 2-year-old London-based startup, for an undisclosed sum. The move surely isn’t anywhere near the magnitude of Google’s $750 million AdMob buy or even Apple’s $275 million pick-up of Quattro Wireless, but it’s the kind of smaller-scale deal we’re likely to see many more of this year as the segment consolidates.

Mobile ad startups are hot commodities once again thanks largely to in-app marketing, which has given the segment a much-needed lift over the last year. Established Internet companies and software development companies alike are scrambling to gain a foothold in the space, much like in 2007, which saw a flurry of activity including AOL’s acquisition of Third Screen Media, Yahoo’s pick-up of Actionality, the Microsoft ScreenTonic buy and Nokia’s tie-up with Enpocket. While 2010 may not see as many blockbuster deals, the number of tie-ups could end up surpassing that of three years ago, Rich Wong of Accel Partners told me last week:

Brand managers now are spending in this medium. It’s real, and it’s genuine. I do think it’s going to be hard to have a quarterly earnings call as a major Internet company and not have an answer to the question, ‘What’s your mobile strategy?’

The landscape is far different now than it was just three years ago, though, when a handful of startups were quick to emerge in the nascent space. Recent figures from IDC indicate that Millennial Media is clearly the largest startup left on the field (see chart); the mobile search firm JumpTap is the second-largest potential acquisition despite a mere 4 percent market share. Yahoo and Microsoft claim a combined market share of only 19 percent — which may prompt the high-profile players to make an acquisition or two this year in order to build their mobile businesses.

The field also teems with smaller player that specialize in targeted areas such as search or that serve specific geographic regions. And recent growth in the space has given rise to a host of startups that play supporting roles by providing analytics and other tools. Flurry, which pocketed $7 million on the heels of its recent tie-up with Pinch Media, may be especially attractive to ad companies that don’t have their own mobile analytics operations.

So while we may see one or two more big-budget acquisitions in mobile advertising this year, most of the M&A activity will center on smaller startups. Entrenched firms with deep pockets will look to fill out the holes in their mobile ad businesses, and independent players will forge alliances to better compete with their larger counterparts. Those deals won’t make headlines, but they will reconfigure the landscape of mobile advertising in 2010.

Minds Over Media provides full-service online marketing services including web design Denver, SEO Denver, video production Denver, social media marketing Denver,blog design Denver, graphic design Denver, and other digital media services.

Contact Minds Over Media regarding mobile advertising marketing to help promote your business and market your services online.

303-521-6681
http://www.mindsovermedia.com

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Facebook, Twitter users beware: Crooks are a mouse click away

by admin on October 19, 2009

Facebook, Twitter users beware: Crooks are a mouse click away

By Stephanie Chen CNN

(CNN) — If you’re on Facebook, Twitter or any other social networking site, you could be the next victim.

That’s because more cyberthieves are targeting increasingly popular social networking sites that provide a gold mine of personal information, according to the FBI. Since 2006, nearly 3,200 account hijacking cases have been reported to the Internet Crime Complaint Center, a partnership between the FBI, the National White Collar Crime Center and the Bureau of Justice Assistance.

It starts with a friend updating his or her status or sending you a message with an innocent link or video. Maybe your friend is in distress abroad and needs some help.

All you have to do is click.

When the message or link is opened, social network users are lured to fake Web sites that trick them into divulging personal details and passwords. The process, known as a phishing attack or malware, can infiltrate users’ accounts without their consent.

Once the account is compromised, the thieves can infiltrate the list of friends or contacts and repeat the attack on subsequent victims. Social networking sites show there is ample opportunity to find more victims; the average Facebook user has 120 friends on the site.

Read rest of article

Minds Over Media provides full-service online marketing services including web design Denver, SEO Denver, video production Denver, social media marketing Denver, blog design Denver, graphic design Denver, and other digital media services.

Contact Minds Over Media regarding social media marketing to help promote your business and market your services online.

303-521-6681
http://www.mindsovermedia.com

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YouTube Monetizing More than 1B Video Views Per Week

by admin on October 15, 2009

YouTube Monetizing More than 1B Video Views Per Week
By Liz Gannes
Gigaom Network

When will YouTube be profitable? “In the not-too-distant future,” said Google CFO Patrick Pichette on today’s quarterly earnings call, same as he said last quarter. He did offer a “sound bite” to appease investors and industry watchers: “We’re monetizing more than a billion video views every week on YouTube.” That’s out of “well over” a billion views that YouTube recently said it gets every day. So, let’s put on our fuzzy and unauthorized math thinking cap: There are seven days in a week. YouTube is monetizing in the neighborhood of 14 percent of its total views.

Google’s Nikesh Arora, president of global sales operations and business development, noted campaigns on YouTube’s home page have been undertaken with 90 percent of the top 50 advertisers. He said 90 percent of YouTube’s home-page inventory was sold out in the third quarter. Further, YouTube is beginning to release pre-roll inventory to advertisers — not the most-liked format for watchers or many in the industry, but a good way to make money. And the site is getting more premium content; it tied up a deal with Channel 4 this morning and straightened out its relationships with the music labels in recent weeks.

Google has come a long way from last year in its attitude towards YouTube, when CEO Eric Schmidt called YouTube monetization “the holy grail” and “our highest priority this year.”

“In general we’re really pleased about YouTube’s performance — it is going very well,” said Pichette. Arora added: “We’re pleased with our ability to monetize YouTube so far, and we like the trend.”

Contact Minds Over Media regarding online video to help promote your business and market your services online.

303-521-6681
http://www.mindsovermedia.com

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2010 Outlook: Local Interactive Advertising

by admin on October 15, 2009

The wave of Internet advertising that locally focused media companies have been surfing for five years has now peaked, and some media companies are starting to eat sand. For the first time since they began selling online advertising more than a decade ago, sales are in decline for the majority of legacy media companies, but many companies with independent online-only sales forces are still hanging ten. This shift is highlighted by companies like CareerBuilder, which has seen sales driven by newspaper reps decline this year, while sales driven by its independent sales force are growing.

The trough will get even deeper in 2010 as local online advertising continues to slow and as a bevy of new competitors rush in to become purveyors of hyperlocal everything. PBS, ESPN, AOL, Huffington Post, The Knot, Microsoft, Yahoo and scores of others have announced plans to reach deep into local ad sales. While they missed this crest, there is plenty of money yet to be made in local online ad sales.

Meanwhile, the next waves are forming on the horizon, as they always do, and companies that know what to look for can begin moving to catch them. Online promotions and mobile advertising are two such waves. This 2010 Outlook offers observations and forecasts intended to help that process.

Local online advertising will hit $14.2 billion this year, 12 percent more than 2008. For 2010 we are forecasting that it will grow just 5 percent, to $14.9 billion. In the past five years, local online advertising grew at a compound annual growth rate of 46.5 percent. For the next five, we are expecting that rate to be 2.9 percent. The forecast is predicated upon a slow economic recovery and the fact that “online” as a local media advertising category is approaching what we believe is saturation. Online media buys currently hold a 13.8 percent share of all local advertising. We believe it will peak at a 16 percent share by 2013.

Unfortunately, one of the hottest growth categories – mobile – is not likely to play a significant role on the local media landscape next year. We are estimating that local buys will comprise only 20 percent of all mobile advertising, totaling slightly more than $500 million in 2010. Still, mobile is a category worth watching as the audience grows and as couponing, mobile directory advertising and sponsored text messages find viable applications for local marketers.

The game in 2010 will center more around stealing market share than growing the market. Local advertisers have had plenty of time to assess the effectiveness of banner ads, search, streaming video and e-mail advertising peddled to them over the past decade. They will abandon programs that just do not work, and embrace those that produce measurable results. They are also likely to continue following a few years behind the spending patterns of national advertisers by expanding their use of online promotions, which give them more direct access to their customers and prospects – without having to rely as heavily on media companies to help reach them.

Study provided by Borrell Associates. For more information and to download data samples visit www.borrellassociates.com

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7 Sins of Landing Page Design by Tim Ash

by admin on October 7, 2009

As presented by Tim Ash of SiteTuners at Affiliate Conference Denver, CO June 2009. We won Tim’s book “Landing Page Optimization” in a drawing!

#1 – Call to Action not clear

Visitor does not know what they’re supposed to do. How to order, what number to call, how to contact?

#2 – Distracting Visuals

Too many images and graphics not related to service or product. Visitor is blasted with too many things, poor separation of content and navigation.

# 3 – Text Overload

Too much detail, poor flow, poor outline. People aren’t going to read a book.

#4 – Landing Page Does Not Match What the Ad Says

Your landing page does not deliver what the visitor is expecting from the ad, banner or other link they clicked on.

#5 – Form and Info Request Overload

Asking for too much irrelevant information, or information that isn’t needed till later.

#6 – Trust and Risk Minimizers

Trust symbols such as BBB, Hacker Safe, Verisign Secure Site are not prominently displayed early in the decision process.

#7 – Trust Verification Missing

Missing third party endorsements, client testimonials, list of current clients and customers, reviews and feedback.

Better landing page design will result in:
Increased conversion rates
Increased revenues

Landing Page Optimization Denver

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Growing Your Business in a Bad Economy

by admin on July 24, 2009

In a bad economy, companies “batten down the hatches” to prepare for difficult times. Studies show 75% of U.S. companies respond by cutting back and prepare for a difficult period – deservedly so.

One common mistake companies make in recessionary times is cutting back on their marketing and advertising budget – this is usually the first expense that gets eliminated.

During a recession, consumers don’t stop purchasing, but they do become more selective. They focus on looking for “value” in their purchases. They are going to purchase products and services from someone, likely businesses they know and trust.

Better make sure they know your business!

In today’s digital age, businesses small to large, should continue to invest in their online marketing and advertising. The Internet is the most efficient, cost-effective marketing channel, and delivers the most ROI in acquiring customers and revenue. The web and mobile will only continue to grow in effectiveness for a business. Businesses should consider reallocating budgets that are used in other less effective media such as print, yellow pages, radio, and TV into online marketing programs such a website, search engine optimization (SEO), Internet video commercials, pay-per-click advertising, email marketing, and other online media.

McGraw-Hill Research did a study of U.S. recessions, analyzing 600 companies from 1980-1985. The results revealed that companies that maintained or increased their advertising investment during the 1981-1982 recession averaged significantly higher sales growth, both during the recession and for three years following the recession, than companies that eliminated or decreased advertising. Sales revenue of companies that advertised aggressively during the recession had risen 256% by 1985, over those that didn’t maintain their marketing efforts. See graph below.

Comparison of Sales & Ad Expenditures Pre and Post Recession

Moreover, six studies conducted by the research firm of Meldrum & Fewsmith showed conclusively that advertising aggressively during recessions increases sales and profits. This fact has held true for all post-World War II recessions studied by The American Business Press starting in 1949.

To be successful, a business should have the following working and functioning online marketing infrastructure to empower their business in today’s economic times:

Well designed and effective Website
Search Engine Optimization (SEO)
Blog
Social Media Marketing
Online video commercials, business profiles
Content Generation
Email Marketing and Customer Databases

Ideally you want a web design firm that provides all of the above services versus a hodge podge of different companies where integration, effectiveness, cost, and management become a problem. A strong web design firm can function as your online campaign manager, integrating all of the above facets.

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Beware of companies offering SEO services

by admin on July 16, 2009

Many SEO companies can provide businesses with valuable services, but you need to beware because there are many SEO companies or companies claiming to be SEO’s, that use unscrupulous marketing tactics and make false promises in an effort to get your money. Be particularly cautious of companies that solicit you with unsolicited telemarketing calls or spam emails promising top rankings.

Some of Google’s top warning include:

1) Be wary of SEO firms and web consultants or agencies that send you email out of the blue. Reserve the same skepticism for unsolicited email about search engines as you do for “burn fat at night” diet pills or requests to help transfer funds from deposed dictators.

2) No one can guarantee a #1 ranking on Google. Beware of SEOs that claim to guarantee rankings, allege a “special relationship” with Google, or advertise a “priority submit” to Google. There is no priority submit for Google.

3) Choose wisely. While you consider whether to go with an SEO, you may want to do some research on the industry. Google is one way to do that, of course. You can also check with your web designer or their contacts. Google doesn’t comment on specific companies, but they’ve encountered firms calling themselves SEOs who follow practices that are clearly beyond the pale of accepted business behavior. Be careful.

Listed below are a couple of examples of companies that have received numerous complaints and bad feedback on web:

Mainstreethost.com
Sample reports http://www.ripoffreport.com/reports/0/350/RipOff0350339.htm
http://stopmainstreethost.blogspot.com/

usaseopros.com
Sample report http://www.ripoffreport.com/reports/0/347/RipOff0347104.htm

Internet Advancement
Sample report
http://seattletimes.nwsource.com/html/businesstechnology/2002002970_nwbizbriefs12.html.
Simple things you can do to research an SEO company are:
1) Do a Google or other search on the company and see what type of feedback comes about the company from previous customers, complaints, etc.
2) Speak with your web designer. Maybe they offer SEO services, or know a reputable company that does. Your web designer can probably help you research these companies as well.

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