Telstra partners MCN to become 7th largest online property group

Telstra Corporation and Multi Channel Network (MCN) have brokered a deal that will see the pair’s combined online assets become the seventh most visited online group in Australia, and in the top handful of digital advertising players.

The partnership will see MCN represent key Telstra online assets and deliver advertisers an average monthly unique audience of 8 million Australians per month, according to an announcement issues today. This would place the Telstra-MCN combination behind only Mi9 (ninemsn) and Yahoo!7 as the biggest Australian publishers, based on June’s Nielsen Online Ratings.

From October, MCN will offer integrated sales packages which include 42 of Telstra’s online portals and sites as well as mobile, tablet devices and IPTV.

Group managing director, Telstra Media, Rick Ellis, says the deal with MCN would deliver top-tier advertising scale and give clients access to cross-platform marketing opportunities across Australia’s premium entertainment brands.

“The combined strength of MCN and Telstra Media’s assets will make the enlarged network one of the top five players in the Australian digital advertising market. This outcome makes strategic sense by strengthening Telstra Media and MCN’s capabilities to deliver innovative advertising solutions to the market,” Ellis says.

The deal will enable Telstra to target multiple devices including television, Ellis adds. MCN’s brands, which include FOXTEL Networks, FOX SPORTS, Sky News, The Discovery Networks, BBC Group, Showtime, ESPN and Sky Racing, attracted 500,000 unique viewers to its video content in April, according to comScore.

CEO of MCN, Anthony Fitzgerald, says, “Telstra has developed some of Australia’s leading online media and entertainment properties and we are delighted to be able to represent and leverage the value of those assets within the Australian market.

“This is a significant move for MCN’s online business and for the Australian digital advertising landscape in general – reinforcing our position as a one-stop-shop for advertisers who want to align with the key genres of entertainment, sport, lifestyle, music, kids and factual properties.”

Telstra’s digital assets include Telstra T-Box, BigPond.com, BigPond TV, BigPond Sport, BigPond News, AFL.com.au, NRL.com.au, V8 supercars, the Racing network, music streaming service MOG and restaurant booking service Dimmi.

 

Online video stragglers: Aus ranks 7th for video access in Asia Pacific

While 79.7% of online Australians now watch videos online, the nation is only the seventh most prolific user of online video per capita in the Asia Pacific region, according to comScore.

The web monitoring firm’s Video Matrix tool shows that four in five online Australians accessed internet video in June, putting penetration levels behind highly-developed neighbours, such as Hong Kong, Singapore and Japan, as well as less developed neighbours and the global average.

However, in terms of the number of clips watched per viewer, Australia moves up the rankings to place fourth with an average of 151 clips watched per viewer in June.

Senior vice president for comScore in Asia Pacific, Joe Nguyen, comments that watching video clips online is now part of the diet of most online consumers, and is expected to grow across the region. “Online video viewing has become a leading pastime for the majority of today’s online consumers, presenting new opportunities for content providers and advertisers to reach their key audiences with engaging content,” Nguyen says.

“As content options expand and connection speeds advance, we expect to see more people spend more time watching online video in developing markets, which presents an exciting opportunity for marketers throughout the region.”

Video viewing penetration across the region ranged from a low of 66.9% in Indonesia to a high of 89.8% in Vietnam, as both broadband access and content availability factored into online video viewing adoption.

Vietnam, Hong Kong (88.7% reach), Singapore (84.5% reach), Japan (83.7% reach) and New Zealand (83.4% reach) all saw online video penetration exceed the global average of 83.1%.

With an ageing population, Australia’s lower penetration of online video watchers could simply be a reflection of the less sophisticated web habits of older generations. The quality and depth of video content available to Australian audiences, a topic that attracts considerable debate within the industry, appears to be healthy with the average number of clips watched per viewer high relative to the rest of the region.

To see an in-depth analysis of Australia’s online video behaviour, view Marketing’s ‘Online Video Snapshot’ infographic here.

In June, the average Australian video watcher consumed 151 clips, a slight decrease on usage recorded in April when viewers accessed an average of 158 clips each. On balance this would put our current usage on par with Singapore and behind only Hong Kong, with 181 videos per viewer in June, and Japan, with a staggering 243 videos per viewer for the month.

comscore june

 

Infographic: Online video snapshot

‘Online video’, a format ‘traditionally’ entailing short rather than long online clips, is the subject of Marketing’s latest infographic investigation.

The point that emerges most strongly out of our visualisation of comScore’s data is the rapid increase in the amount of video being consumed and the increase in the amount of time spent watching as more long form content moves online. These findings point to a future where connected TVs merge what is considered online video today and traditional broadcast television.

But while we wait for that future to arrive, there are a number of other evolutions taking place in the consumption of video through PCs, mobile devices and apps on smart TVs.

The average online video watcher consumes 158 clips per month or 14.3 hours of video. Men dominate, accounting for two-thirds of time spend watching, the reason for which we won’t hazard a guess other than to point out that adult themed video is the seventh most watched category, reaching almost one in four Australians!

The news media’s shift towards video content is being led by ninemsn (aggregated under Microsoft’s banner) and Yahoo!7, who registered higher viewer numbers in April than Fairfax and News Ltd. In the battle of the big digital newspaper groups, News eclipsed Fairfax by 200,000 views but did not hold the audience per video for quite as long.

Data brought in from comScore’s US analysis shows that one-third of viewers regularly use the internet for TV show consumption, via services such as Hulu and Ooyala. This behaviour skews heavily towards younger audiences with almost one in two 18-34 year olds regularly watching long form TV content via the internet.

Click to view in full size.

Experts wary as Facebook spruiks ‘cherry-picked’ ad effectiveness data

Facebook has launched a concerted PR effort to bolster opinion of its ad products and marketing effectiveness, releasing research on the performance of its solutions for businesses.

But while the research shows positive results for marketing activity including Pages and its ad products, the amount of data released has been limited and mostly related to a few select brands. Accused of cherry-picking evidence of its effectiveness in the past, the real story could be less positive than Facebook’s analytics show, according to comments from a local Facebook adman.

Last week, the newly public company’s PR agency contacted Marketing with the findings and an offer to interview a spokesperson based in their Californian headquarters about a report conducted using comScore social media analytics, and its own research into return on investment.

comScore’s report demonstrates how different steps in the social media marketing process work, evaluating the combined impact of owned (a brand’s Facebook Page), earned (amplification of a brand’s content from fans to friends of fans) and paid (ad placements in the right hand column of Facebook’s layout) techniques. The report, dubbed ‘The Power of Like 2’ calls the three techniques, when used together, “a virtuous cycle of brand impact”.

To illustrate rates of amplification, comScore looked at the “leading brands on Facebook”, reporting that most achieve a monthly amplification, or earned media exposure to friends of their fans, of between 50 to 200%, expressed as a ratio of 0.5 to 2.0. This amplification was driven by optimising fan reach and engagement and by supplementing with paid advertising strategies, which for the top ten brands, shown below, resulted in an average amplification ratio average of 1.05.

The report then goes on to look at how Facebook campaigns impact on sales, using an analysis from the American 2011 holiday season examining the social media presence of four leading retailers: Amazon, BestBuy, Target and Walmart. During this period “most of these retailers were highly active with their social marketing programs on Facebook, in some cases soliciting customers and potential customers to become a Fan in order to get a sneak peak at their Black Friday ‘door-buster’ deals,” the report reads. Amplification rates rose by two to four times what they normally were as a result of this activity, and resulted in higher spend levels for fans and friends of fans, compared to the general public, according to an index where a score of 100 represents what a member of the general public spent.

Starbucks was also used as an example, with a control group and test group compared over a four week exposure period, showing a 38% lift in purchase incidence among the exposed group.

Commenting on the results, Facebook’s advertising communications manager, Elisabeth Diana, told Marketing that the findings support the idea the Facebook fans and advertising drive sales to brands: “comScore used a ground-breaking methology to show there is a causal link between seeing a branded message from a brand on Facebook or seeing an ad for that brand on Facebook and driving sales.”

Facebook’s own research into ROI, which was conducted across more than 60 brands, claims a return on investment per advertising dollar of three-fold for most campaigns, and for some a return of five-fold. For “campaigns using a variety of third party methodologies like panels and mix media models, all client initiated, we have seen that, in all the studies run on ROI to date – not cherrypicked – all of the studies we have run” a return on ad spend of three times or better in 70% of cases and a return of five times or better in 49% of cases.

With highly publicised cases of big brands pulling out of advertising on Facebook, such as General Motors, and criticism over their ad formats, the newly public company is under increasing pressure to display a stronger monetisation strategy.

Ben Willee, general manager and media director of STW Group’s Spinach Advertising, which runs Facebook campaigns for a number of local clients, agrees with criticisms of the social networks ad approach. “The Interactive Advertising Bureau has a number of standard formats that have been developed over the last ten years to suit advertisers and to suit the industry and Facebook doesn’t operate in that space,” Willee says.

“Facebook’s formats tend to be in a position and a size that are less eye-catching than other digital formats. In a medium that’s super cluttered, it’s really hard to cut through at the best of times, let alone when you’ve got one hand tied behind your back with a format that is perhaps not as good as it should be.”

Willee’s comments support the notion that Facebook has been ‘cherry-picking’ the data it releases to give a positive impression of its products for marketers. “Stronger brands will always perform better in any research because they’re much more salient,” Willee says. “Here you’re talking about a bunch of big American brands that have very sophisticated social media campaigns. We haven’t necessarily seen any big brands go to that level of sophistication within Facebook in Australia.”

Where Facebook can be the most powerful is in sponsored stories, which Facebook is yet to release any data on, or any sponsored ad that uses friends’ likes to promote engagement, according to Willee. “What we’re seeing is that’s enormously powerful and absolutely working it’s socks off, because people want to operate in communities and think if that person likes it then I will like it as well because that person and I are quite similar. We know that little things like that are enormously powerful. Imagine what we could do if we had bigger formats and access to richer data.”

 

Facebook IPO: tomorrow, or in a few weeks, or maybe even in June

Speculation is rife about a potential Facebook IPO rumoured to be taking place sometime this week in what’s being called a defining moment for the internet.

The Wall Street Journal reports that ‘people familiar with the matter’ have said the IPO could come as early as tomorrow in the US. These sources also said that Facebook executives were considering filing in a few weeks’ time or sometime between April and June, so only time will tell.

Facebook is yet to comment on the rumours, however, according to Mashable the social network has shown signs of preparing for public offer having halted its trading in secondary markets for three days last week and is pushing to get Timeline and other product offerings in place. On its blog, Facebook announced that all users will be forced to adopt the Timeline layout in the next few weeks.

Mashable says that, “If and when Facebook does file its S-1 paperwork, it will be forced to enter a ‘quiet period’ – without product announcements, interviews or any other public statements.”

The social network has still given no word though on when Timeline will be rolled out for branded Pages, which has been slated as a creative way for advertisers to engage in social media campaigns.

The Facebook float would be the largest tech IPO in history, anticipated to value the company between US$75 and US$100 billion, well above Google’s post-IPO valuation of US$23 billion in 2005.

It’s reported the company could raise as much as $US10 billion from the IPO, well ahead of the capital raised by tech’s largest IPO to date – $5.9 billion in 2000 by German-based Infineon.

According to The Wall Street Journal, a $10 billion Facebook offering would rank fourth among IPOs for US companies behind Visa, General Motors and AT&T Wireless, and value the social network on level pegging with McDonald’s.

The WSJ says Facebook increased its global advertising revenue from $738 million in 2009 to $3.8 billion in 2011. Data released overnight by comScore shows the social network increased its share of the display ad market, up to 27.9% in 2011, compared with 21% in 2010.

Principal analyst at Ovum, Eden Zoller, says Facebook’s goal is to become the centre of people’s digital lives, and the dominant platform for rich communications, commercial content and advertising.

“Facebook’s user base continues with its impressive growth trajectory which should comfortably pass the one billion mark this year, with particular opportunities to build the base in emerging markets and to extend its reach via mobile devices,” Zoller says.

“The challenge, and it is a big one, is whether Facebook can keep its users active and engaged in a context where Google is pushing hard into social media and many home grown social networks are looking to up their game, notably in China.

“The money raised from the IPO will give Facebook more resources to invest in acquisitions, service innovation and advertising analytics.”

 

Homepage image derived from this image courtesy Guillaume Paumier / Wikimedia Commons, CC-by-3.0

Report finds Aussies dont dwell online

Eyeblaster’s latest benchmark report has found Australian’s have the lowest average dwell time and dwell rate for online advertisements globally.

The report juxtaposed Australia and New Zealand, North America, East Asia, Europe, South Asia and South America and analysed the results of more than 13 billion rich media impressions globally in 2009. It found a direct link between high dwell rate and and high conversion rate.

When a consumer engages with an advertisement for longer, the chance of conversion increases. On average, increasing dwell from 5% to 15%, increases conversion rate by 45%, from 0.4% to 0.6%. This offers further credence to the importance of engaging creative in the digital space.

The report also analysed the dwell rate by vertical within Australia. The technology and internet vertical performed best at 12.8%, followed by sport at 10.5% and retail at 9.3%. Surprisingly, news and media performed the poorest of all verticals in Australia, at a 2.6% dwell rate and average dwell time of 23.6 seconds [Ed: not even close to Marketingmag.com.au’s much more robust dwell time].

“These metrics are evidence that user interaction with an advertisement increases the dwell time, which directly affects conversion rate and brand awareness. Australian advertisers need to tap into the unique benefit of engagement that online advertising can offer,” said Carolyn Bollaci, Eyeblaster country manager, Australia and New Zealand.

Bollaci offers the following tips for advertisers looking to increase conversions:

  • select advertising real estate around editorial content requiring thorough reading
  • use video (the report found this increases dwell rate by 29%), and
  • be assertive by utilising features such as expandable banners.

Eyeblaster also points to recent research conducted by Microsoft, comScore and itself that confirms digital campaigns with high dwell are more effective for branding. The results indicate that campaigns with a high dwell triple brand related keyword search, increase traffic by 69% and increase brand engagement: number of page viewed and time spent on the advertiser’s site.

The full report can be read here.

Social media across Asia-Pacific

comScore has released its latest report on social media across Asia-Pacific (excluding China).

The report found that Australia ranks a nail-biting second to the Philippines for social media penetration. In the Philippines 90% of the web population visited a social networking site during February, the figure for Australia was 89.6% and 88.6% for third place, Indonesia.

Engagement across the region followed a similar pattern, with the average Philippines user spending 5.5 hours monthly on social networking sites, Indonesians 5.4 hours, and Australians and Malaysians 3.8 hours.

Averages for the measured period across Asia-Pacific indicate 2.5 hours are spent per month on social media and an individual will visit the category 15 times monthly. 50.8% of the total online population in the region visited a social networking site during the period. Facebook was the most popular, with a total of 240.3 million visitors.

“While social networking continues to be one of the most popular and fastest growing web activities in the world, its dynamics in the Asia-Pacific region exhibit significantly more individual market differentiation than in other global regions,” said Will Hodgman, comScore executive vice president for Asia Pacific. “In some markets, such as the Philippines, Australia and Indonesia, social networking is one of the most popular web activities reaching nearly 90 percent of the entire Internet population, while other markets report less PC-based social networking penetration, which can often be attributed to the high propensity to engage in social networking via mobile devices in these markets.”

Why social media and marketing dont mix

The reason why social networking websites are so popular

You’ve seen the news, been to the conference and watched the YouTube video. You can’t hide from it; social media is huge. In fact Facebook has almost 8 million users in Australia alone and Twitter is growing at a rate of more than 1000% per year. Face it – your grandmother is probably on some sort of social network by now — just cross your fingers you don’t end up coming face to face with her on chat roulette one night.

But why are social networks so popular?

Social networks are the new town halls, the village greens, the community noticeboards; the piazzas of 2010. They allow people to communicate with each other, but just as importantly, they allow people to create an online extension of their personality. It’s that simple. In fact, it’s where the name ‘MySpace’ comes from. The creators allowed people (kids mostly) to create their own personal space on the web.

Once upon a time people had secret diaries, bedroom walls covered in polaroids, a box of love letters hidden under the bed and a little black book of friends names, phone numbers and birthdays. Everything was on paper, and people shared information with their friends by handing it to them in person. Now all that personal stuff is stored digitally and people share it via email, or by uploading it to their favourite social network.

And people share rather a lot of stuff.

In fact, the average internet user spends almost 20% of their working day sending and receiving email (according to Radicati), more than five hours a month on Facebook, about two hours a month on Google and an hour and 20 minutes each month on YouTube (according to Nielsen).

And those are the figures for the average user. There are plenty of Facebook and YouTube fans who spend more time on those sites than they do sleeping.

It’s no wonder then that marketers are so keen to get their messages into these mediums.

Where marketers have been going wrong

The problem is, people don’t like sharing their personal space with marketers. Ask anyone who’s ever been called at 8 am on a weekend by their phone company, had a Jehovah’s Witness at their door or been offered a penis enlargement solution. People accept that they’ll see advertising on TV, and in the right-hand column on Facebook, but once brands start trying to infiltrate conversations outside the space where they have permission too, people get annoyed.

Shopping centre giant Westfield ran a promotion in the lead-up to Christmas last year. The idea was that if you changed your Facebook status to “All I want for Christmas is a $10,000 Westfield Gift Card” you went in the running to win one. It certainly wasn’t a terrible idea at face value. It generated a lot of publicity for the brand with more than 200,000 people changing their status, but inevitably, the novelty wore off quite quickly and a dozen popular anti-Westfield groups sprung up, including one titled IF ALL YOU WANT FOR CHRISTMAS IS A WESTFIELD GIFT CARD, I DONT WANT TO KNOW, which attracted more than 4,600 fans — only marginally less than the official application, which at last count had 6,778 fans (and keep in mind they were in it to win something). Other groups included THE LAST THING I WANT FOR CHRISTMAS IS A WESTFIELD GIFT CARD, and my personal favourite, Hey Westfield – stick your stupid f%#king gift card up your f%#king arse!!!

Despite actually working with Facebook on the campaign, Westfield also managed to fail on a couple of technical fundamentals as well. The entry mechanism was clearly against Facebook’s Terms of Service which stated that:

“In the rules of the promotion, or otherwise, you will not condition entry to the promotion upon taking any action on Facebook, for example, updating a status, posting on a profile or Page, or uploading a photo.”

And, as Damien Damjanovski explains in his Refined Geek blog, there were some other pretty basic things they could have done to create more buzz, like getting people to become fans of the brand rather than just updating their status.

Fashion brand Witchery recently provided one of the most notorious examples of a brand abusing the trust that exists in social networks. You’ve probably already heard the story, but in a nutshell, they posted a video on YouTube showing a paid actor holding a very prominently displayed jacket which had been left behind by a cute male owner. The video was her ‘plea’ to the public to help find him. The tale attracted widespread media attention, no doubt because of its similarity to the ‘NY Girl of My Dreams’ story which thrilled the world two years earlier, and the actor even went on live breakfast television claiming the story was true. It was, of course, completely made up and Witchery copped an enormous amount of flack for blatantly lying to the public.

The agency behind the campaign, Naked Communications, claimed the campaign was successful and cited independent research which backed their strategy up. But the raw data showed that 60% of people who were aware of the campaign were either unphased, sceptical or felt negatively about it. The sudden departure of the agency’s CEO straight after the debacle didn’t exactly send a message of success either.

Facebook advertising – just because you have permission to talk doesn’t mean they’ll listen

Trying to surreptitiously infiltrate social networks is one clear example of where marketers are going wrong, but sadly, even if you have permission to reach people via social network advertising, the chances of actually getting through to them are slim.

According to industry blogs and Facebook’s own forums, advertising click through rates (CTR) in the network average around 0.01-0.1%. If you can get more than 1 person in 1000 clicking your ad, you’re apparently doing well. Compare this to the average click through rate of Google’s AdWords program, which is around 1-5%, and you’ll quickly understand the difference between advertising something to a consumer who is actively searching for your product or service, and someone who mentioned something vaguely related to your product or service a year ago when they created their Facebook profile.

That’s not to say Facebook advertising doesn’t work. More often than not it’s just not the best place to be looking for prospects because they’re probably not in the mood.

Going ‘Viral’ on YouTube (and how much money you need to spend to make it happen for free)

So what about YouTube then? According to their official stats:

  • Every minute, 20 hours of video are uploaded to YouTube
  • 51% of users go to YouTube weekly or more often
  • 52% of 18-34 year-olds share videos often with friends and colleagues

Given that more than half the US population watch more than 100 videos on YouTube each month (according to ComScore), Youtube is more popular than any television network in the world. Considering it’s free to put a video on the site, you’d be forgiven for thinking that YouTube sounds like a marketer’s wet dream. It’s not.

According to Business Insider, more than half of all videos on YouTube are viewed less than 500 times and 30% of them get less than 100 views. A mere 0.33% are viewed more than a million times. 

While there are some great examples of corporations getting their clip to go ‘viral’, there is no magic formula to make it happen.

Producing entertaining content helps and making people laugh is a sure fire way to attract a little bit of attention (at least from friends of your friends), but there’s absolutely no way to predict how many people will end up seeing your video and that makes it incredibly hard to justify the production costs to whoever holds the purse strings.

You can’t make a video go ‘viral’ and given that 90% of videos are viewed less than 5,000 times, unless your production costs are close to zero, hoping your clip will spread over the internet like a rash is a costly gamble.

Tourism Queensland recently provided one of the best examples of how to use YouTube in the marketing mix. Beginning with a series of classified ads in the job sections of newspapers around the world, they advertised a position for an ‘Island Caretaker’ on the Great Barrier Reef – a 6 month contract paying $150,000 to basically have a tropical island holiday and blog about it.

It was a slow news week and news outlets from around the world quickly picked up on the quirky story. The total global advertising budget was rumoured to be in the millions, but the free exposure the organisation got was worth hundreds of times more than that in advertising value equivalency (an antiquated public relations term which means ‘the amount of money you’d have to pay to get the same amount of coverage via advertising’).

The result was around 250,000 views of the centrepiece video on YouTube – which is not a small number, but testament to the fact that if you want to guarantee more than a few thousand people see your YouTube video, you need an integrated global advertising and PR campaign, a big wad of cash and a generous slice from a lucky pie chart. In fact, as Tourism Queensland digital marketing manager Sarah Whyte explained to me, “the media publicity was a fundamental element underpinning the campaign — certainly in propagating the viral in the first instance.”

Social media as a customer service platform

Thinking back to that stats I mentioned earlier, you’ll remember that social media is big. People are used to communicating with each other online. It’s convenient, they can do it 24/7 and if companies are prepared to provide an online channel for their customers to use, they’ll respond happily.

Big companies, from Google to ABC Childcare, now use online forums as a way for their customers to get in touch with them 24/7. Company representatives keep an eye on the questions, but more importantly, so do other loyal customers, who often chime in with a helpful answer first.

People love to feel important and letting them speak proudly about a company they love is probably the best way to create brand ambassadors.

Optus and Telstra have also had huge success using Twitter as a customer service platform. Dedicated customer service teams monitor messages from the public and are committed to getting back to them quickly and professionally.

However, opening up your customer service to an online audience is fraught with risk.

When they’re upset people love to complain loudly and they love it even more if they know they have an audience. Once you give them a platform to yell, they will. And if potential new clients are using the same forum (or Twitter account), seeing a long list of gripes from existing customers isn’t exactly going to make you look awesome. And if you can’t get back to people as quickly as they think they deserve an answer, you’re going to make yourself look like you don’t care.

Once you start communicating on a social media channel you can’t change your mind and then shut it down again either. You’ll look like you’re crazy, or you don’t care. It’s like talking to your mum on the phone. If you suddenly stop calling one week she’ll think you’re on drugs. That being said, if you happen to work in the social media customer service department of a large company and forget which account you’re updating, people are going to think you’re on drugs anyway, as Westpac found out last week:

So what’s the moral to the story? How can you successfully use social networks to flog stuff, I mean, market things?

Social networks are spaces for individuals to communicate with each other, to hang out and to document their lives. It’s a place for friends (in fact, that’s MySpace’s strapline). If you want to get attention you’ve got to go about it the same way you would if you were trying to make a new friend: be interesting, be funny, talk about stuff they like and don’t be overbearing. Having a reputation that precedes you doesn’t hurt either – it’s much easier to make friends with a friend of a friend, and in the same way, if your social media strategy is backed up with a solid PR and above the line campaign, you’re more likely to make an impact.

Want more examples of how to do it right?

Stay tuned for my next column and we’ll go through a detailed list of Australian companies doing awesome things with social media at all levels – from small businesses, right through to the biggest banks. If you can’t wait, check out James Duthie’s great list of Australian businesses and brands on Twitter. It’s a year old now, so it’s probably a bit out of date, but it’s a great place to see some examples in action.

Australian etail boom during Christmas period

During December 2009 eight million Australians visited an etailer, according to comScore.

A comScore study found three out of five Australians had visited an online retail site – the highest traffic for the year. This represents a 3% increase year-on-year. Apple.com led the category with more than three million visitors, or a 63% increase.

Top 10 Retail Sites in Australia by Unique Visitors
Website December 2008 December 2009 Percentage Change
Apple.com Worldwide Sites 1,873 million 8,123 million 63%
Amazon Sites 1,994 million 2,554 million 28%
Coles Group Ltd 1,005 million 1,304 million 30%
Woolworths Limited 817 million 1,210 million 48%
Shopping.com Sites 971 million 1,036 million 7%
GetPrice.com.au 381 million 652 million 71%
MyShopping.com.au 281 million 475 million 69%
DealsDirect.com.au 457 million 452 million -1%
Dell 284 million 448 million 58%
AmericanGreetings Property 445 million 443 million -0.449%
  • Courtesy comScore

“December continues to be the heaviest month for visitation to retail sites as the holiday shopping season reaches its pinnacle,” said Will Hodgman, comScore executive vice president for the Asia-Pacific region. “The online channel is an increasingly important component of retailers’ holiday strategies with a growing number of consumers turning to the Web for comparison shopping and purchasing convenience.”

Top 10 Retail Subcategories in Australia by Unique Visitors
Subcategory December 2008 December 2009 Percentage change
Computer hardware 4,384 million 3,926 million -10%
Comparison shopping 2,305 million 2,665 million 16%
Computer software 1,100 million 1,604 million 46%
Apparel 1,064 million 1,500 million 41%
Department stores 1,090 million 1,411 million 30%
Consumer electronics 1,088million 1,394 million 28%
Tickets 974 million 862 million -11%
Flowers/gifts/greetings 759 million 766 million 1%
Sports/outdoor 609 million 736 million 21%
Food 438 million 582 million 33%
  • Courtesy comScore

Asia-Pacific fuels rapid growth in internet audience

A study has found that visitors to internet sites in the Asia-Pacific region has increased 22% to nearly half a billion, with most individual countries in the region experiencing double-digit growth rates.

The comScore report on the growth of internet audiences in the Asia-Pacific region was based on data from its World Metrix service.

In September 2009 the internet population in the Asia-Pacific region reached 484 million visitors, explained the report, with age groups 15-plus accessing the internet from a home or work location.

With nearly half a billion people online, the region now accounts for 41% of the total 1.2-billion person global internet audience.

China, home to the largest internet population in the world, experienced a 31% increase to 220.8 million, making it the fastest-growing internet country in the region.

Japan saw its online population increase 18% to 68.3 million, while India climbed 17% to 35.8 million users.

“With most markets in the region experiencing double-digit growth, marketers and advertisers have the opportunity to capitalise on the potential of the online channel to reach and engage a surging number of people engaging in a variety of consumer activities online, including reading content, watching video, playing online games, engaging with brands, conducting financial transactions and making online purchases,” said Will Hodgman, comScore executive vice president for the Asia-Pacific region.

Microsoft to reveal worth of in-game ads

Microsoft’s in-game ad business, Massive, has engaged comScore to gain insight into the worth of clients’ in-game advertising spend.

JJ Richards, Massive general manager, said the question is whether gamers take action after encountering ads during play.

We know from 80-plus independently verified post-campaign studies that in-game advertising increases brand engagement. But, what we didnt know was the correlation between in-game ads and consumer action.

Microsoft will combine its anonymous ID data, common across Xbox LIVE and Microsoft’s web properties, with user data from comScore’s panel of two million to determine whether panelists who saw in-game ads subsequently visited brand websites, searched brand-related terms, or engaged in any other online behaviours valuable to advertisers.

comScore has conducted some preliminary research using this new methodology on some recent in-game Massive campaigns. The results were heartening for the company, consumers exposed to in-game ads for:

  • TV shows were 280% more likely to visit a TV channels website
  • 57% more likely to visit a movie rental brands website

  • 17% more likely to visit entertainment sites after seeing ads for a particular movie, and

  • Consumers exposed to related ads were 125% more likely to search for a movie rental brand

Social media use inverse to other online activities

Time on social media is eating into time spent on other online activities (eg. instant messaging, portal sites, email).

According to comScore’s US report ‘The State of Social Networks as a Media Platform’, the top 20% of social media users visit social media sites 2.4 times per day and spend 31 minutes in these spaces. This is twice as long as the same users spend on instant messaging and email.

The report indicates that this is good news for advertisers, as exposure to online advertising is high and climbing. The report found that for July 2009 more than one-fifth of online display advertising impressions occurred on social media websites.

Despite these findings, the report said just 3.5% of the US’s total display ad spend went to social media sites. The lion’s share of this figure is divided between MySpace and Facebook, with MySpace receiving 1.4% and Facebook 1.5%. As for impressions, MySpace came in at 9.2% and Facebook at 8.2%.