Looking for a video with a job-hunting chuckle and an emotional ending? Then, this is the post for you.
Hang in there until the reveal in this video from American Greetings! It’s worth it. :-)
After a slow period caused by the Great Recession, annual U.S. advertising expenditures are seeing their biggest increase in about ten years — and things look good through 2018.
As eMarketer reports:
“Total media ad spending in the U.S. this year will see its largest increase in a decade, according to new figures from eMarketer. On the strength of gains in mobile and TV advertising, total ad investments will jump 5.3% to reach $180.12 billion, achieving 5% growth for the first time since 2004, when ad spending increased 6.7%.”
Yesterday, we looked at the growing U.S. TV audience for soccer and the opportunities this provides to sponsors and advertisers.
Today, let us look at the financial dimensions of sports sponsorships for the 2014 World Cup in Brazil. Although the investments are huge, it is not clear that they are always the best expenditures of marketing dollars.
According to McKinsey’s Jeff Jacobs, Pallav Jain, and Kushan Surana:
“The Fédération Internationale de Football Association (FIFA) stands to make $1.4 billion from sponsorship deals with 20 major companies during the World Cup in Brazil. That’s 10 percent more sponsorship revenue than from the last World Cup, in South Africa. Although significant, that’s still far below U.S. corporate spending on sports sponsorships, which grew to an estimated $20 billion in 2013 — equal to one-third of total U.S. television advertising and one-half of digital advertising.”
“Considering the huge amounts involved, you would imagine sponsors of athletes and events have clear answers when asked about their return on investment (ROI). You would be wrong. Industry research reveals that about one-third to one-half of U.S. companies don’t have a system in place to measure sponsorship ROI comprehensively. And that’s costly in another way: in our experience, executives who implement a comprehensive approach to gauge the impact of their sponsorships can increase returns by as much as 30 percent.”
After a few hiccups (such as the introduction of dual subscriptions), Netflix is certainly on a roll again. And a large part of Netflix’s recent success has been tied to its development of original programming, including Emmy-winning House of Cards. This move has changed the business for the industry and drawn emulators like Amazon.
Here is a good infographic that shows “The Economics of Netflix: How to Make a $100 Million Show.” Click on the image for a larger version, and then scroll down to learn many interesting facts about the economics of programming.
Native advertising is a relatively new practice that is rather controversial. It is also booming!!!!! On the one hand, beleaguered publishers — print and online — are able to generate more ad dollars. On the other hand, consumers may not recognize that material that looks like a regular story is really a disguised ad.
With regard to online native advertising, HubShout puts it this way:
“Native advertising has been proven to be a solid strategy for online companies looking for a new way to distribute their content. It’s being adopted by the largest of publishers, and becoming a largely lucrative and successful method of advertising, making it the biggest internet marketing trend this year. As your eye flows down the Web page, you move from ‘native content’ into something that has been sponsored with less distinction. There’s a less abrupt transition, and that’s, hence the name, native advertising.”
HubSpot has published a FREE book — What is Native Advertising and How Does It Impact Consumers? — that is available for download.