Internet Advertising: Search and Banner - US - April 2013

SCOPE AND THEMES
What you need to know
Definition
Data sources
Sales data
Consumer data
Abbreviations and terms
Abbreviations
EXECUTIVE SUMMARY
The market
Internet access, online shopping and research propel growth
Figure 1: Fan chart forecast of U.S. search and banner ad sales, 2007-17
Search leads and keeps gaining
Rising tide for internet ads lifts all ships
Figure 2: U.S. online advertising spend: Search and banner vs. other internet spend, 2012
Market factors
Access to Wi-Fi rising
Figure 3: Internet access, by age, August 2011-March 2012
Internet access shifting to mobile devices
Figure 4: Household desktop and laptop ownership, January 2011 and August 2012
PC ownership nearly universal in higher-income groups
Trust in online shopping rising
Figure 5: Attitudes and opinions about the internet, February 2010-August 2012
The consumer
Frequency of research and wider influence of ads
Figure 6: Incidence of conducting online research for purchases in past week, by parental status, November 2012
Ads result in purchase for minority
Figure 7: Response to internet advertising, by type of ad, February 2010-August 2012
Banner shows efficacy beyond immediate purchase
Figure 8: Attitudes toward banner ads, November 2012
Tackling the frequent researcher a clear behavioral objective
Figure 9: Response to banner ads, by number of items researched online in past week, November 2012
Intermittent purchases most likely to be researched
Figure 10: Categories researched online in past six months, November 2012
Half for Amazon and Google, a third for Walmart and eBay
Figure 11: Leading activities in most recent online product research session, November 2012
Younger researchers more thorough
Figure 12: Number of web activities conducted in most recent online research session, by age, November 2012
Web activity favored by young and high-income consumers
Quick access to mass market readily available on leading sites
Figure 13: Top 10 websites visited in past 30 days, August 2012
Asians clear leaders in online research
What we think
ISSUES IN THE MARKET
Can increasing internet access be bad for ad sales?
Figure 14: Wi-fFi and home network access, July 2009-March 2012
Can increasing online shopping be bad for ad buyers and sellers?
Is advertising a 20th century phenomenon?
INSIGHTS AND OPPORTUNITIES
Beyond immediate purchase
Figure 15: Value seen in online ads, by age, November 2012
Reaching the young and affluent
Figure 16: Time spent online on activities other than email at home and work, by household income, January-August 2012
Figure 17: Time spent online on activities other than email at home and work, by age, January-August 2012
Increasing the regularity of online purchasing
Figure 18: Any online shopping in the past month, and past year, by age, household income, and parents of children in the household, January-August 2012
TREND APPLICATION
Trend: Buydeology
Trend: The Unfairer Sex
Mintel Futures: Old Gold
Figure 19: Products, activities, and services researched online in past six months, by age, November 2012
Figure 20: Selected websites visited in past 30 days, by age, January-August 2012
MARKET SIZE AND FORECAST
Key points
Rapid growth
Figure 21: U.S. total search and banner ad sales, at current prices, 2007-17
Figure 22: U.S. total search and banner ad sales, at inflation-adjusted prices, 2007-17
Rising tide for internet ads lifts all ships
Figure 23: U.S. online advertising spend: search and banner vs. all other internet spend, 2010 and 2012
Fan chart forecast
Figure 24: Fan chart forecast of U.S. search and banner ad sales, 2007-17
MARKET SEGMENTATION
Key points
Search leads and keeps gaining
Figure 25: U.S. online advertising spend: search vs. banner, 2010 and 2012
Search goes new places with Facebook and Siri
Figure 26: U.S. search ad sales, at current prices, 2007-17
Banner growth to be driven by inflow from traditional media
Figure 27: U.S. banner ad sales, at current prices, 2007-17
INNOVATIONS AND INNOVATORS
Facebook makes search social
Ad Options gives consumers control over behavioral advertising
Figure 28: Ad Options Icon
Kibbles ’n Bits gets interactive
Stride’s addictive game drives extended engagement with banner ad
Figure 29: Stride’s “ridiculously long lasting” banner ad game, 2011
BMW serves World’s Longest Banner Ad
Figure 30: BMW “World’s longest banner ad,” 2011
Homeless banner ads taken up in storm
Figure 31: Changing color in Stadsmission banner ads
Interactive banners allow viewers to fly away for the weekend
Figure 32: SAS banner ad
MARKET DRIVERS
Key points
PC penetration at a standstill
Figure 33: Household desktop and laptop ownership, January 2011 and August 2012
Home and work internet access continues to rise
Figure 34: Location of internet usage, February 2009-August 2012
Figure 35: Hours spent online at home in past seven days, February 2009-August 2012
Impact of age on internet usage
Figure 36: Locations of internet usage, by age, January-August 2012
Figure 37: Time spent online at home in the last seven days, by age, January-August 2012
Impact of household income on internet usage
Figure 38: Locations of internet usage, by household income, January-August 2012
Figure 39: Time spent online at home in the last seven days, by household income, January-August 2012
Figure 40: Time spent online at work in the last seven days, by household income, January-August 2012
Web destroying competing media
Figure 41: Impact of internet on other media usage, February 2009-March 2012
Online shopping picking up converts
Figure 42: Online shopping past year vs. the past month, February 2009-August 2012
Figure 43: Attitudes and opinions about the internet, February 20010-August 2012
Figure 44: Online shopping in past year compared to past month, by demographic, January-August 2012
FREQUENCY OF ONLINE RESEARCH
Key points
Weekly online research for products conducted by vast majority
Figure 45: Number of potential purchases researched online in past week, by age, November 2012
Figure 46: Impact of internet on lifestyle, February 2009-March 2012
Homing in on moms
Figure 47: Number of potential purchases researched online in past week, by gender and parental status, November 2012
CATEGORIES RESEARCHED
Key points
Electronics, fashion, travel merit heaviest online spends
Figure 48: Products, activities, and services researched online in the past six months, by gender, November 2012
Figure 49: Products, activities, and services researched online in the past six months, by age, November 2012
ONLINE RESEARCH ACTIVITIES
Key points
Amazon, Google top stops
Figure 50: Use of search and reviews in most recent online research session, by age, November 2012
Figure 51: Use of search and reviews in most recent online research session, by household income, November 2012
Figure 52: Use of search and reviews in most recent online research session, by number of items researched online in past week, November 2012
Figure 53: Interaction with ads, brands, and social media in most recent online research session, by number of items researched online in past week, November 2012
Figure 54: Interaction with ads, brands, and social media in most recent online research session, by age, November 2012
Google retains dominance in search
Figure 55: Search engine usage, by age, January-August 2012
Figure 56: Search engine usage, by household income, January-August 2012
WEBSITES AND WEB ACTIVITIES
Key points
Quick access to mass market readily available on leading sites
Figure 57: Websites visited in past 30 days, February 2009-August 2012
Figure 58: Websites visited in past 30 days, by age, January-August 2012
Figure 59: Websites visited in past 30 days, by household income, January-August 2012
Entertainment for the young, medical and financial for the mature
Figure 60: Online activities conducted in past 30 days, by age, January-August 2012
Figure 61: Online activities conducted in past 30 days, by household income, January-August 2012
RESPONSE TO ADS
Key points
Internet ads increasingly lead to purchases
Figure 62: Response to internet advertising, by type of ad, February 2009-August 2012
Figure 63: Response to internet advertising, by type of ad, by age, January-August 2012
Figure 64: Response to internet advertising, by type of ad, by marital status and presence of children, January-August 2012
Reach universal, response tied to age
Figure 65: Responses to display ads seen in the past month, by age, November 2012
Figure 66: Responses to display ads seen in the past month, by number of items researched online in past week, November 2012
Glass half full for banner ads
Figure 67: Attitudes toward online ads, November 2012
Figure 68: Attitudes toward online ads, by number of items researched online in past week, November 2012
IMPACT OF RACE AND HISPANIC ORIGIN
Key points
Asians top researchers
Figure 69: Time spent online at home in the last seven days, by race and Hispanic origin, January-August 2012
Figure 70: Time spent online at work in last seven days, by race and Hispanic origin, January-August 2012
Figure 71: Number of items researched online in past week, by race and Hispanic origin, November 2012
Figure 72: Interaction with ads, brands, and social media in online research, by race and Hispanic origin, November 2012
Minority groups show superior response to ads
Figure 73: Responses to display ads seen in the past month, by race and Hispanic origin, November 2012
Figure 74: Products, activities, and services researched online in the past six months, by race and Hispanic origin, November 2012
APPENDIX – ADDITIONAL USEFUL TABLES
By age
Figure 75: Use of search and reviews in typical online research session, by age, November 2012
Figure 76: Interaction with ads, brands, and social media in typical online research session, by age, November 2012
Figure 77: Limitations on the value of online ads, by age, November 2012
By age and gender
Figure 78: Products, activities, and services researched online in the past six months, by gender and age, November 2012
Figure 79: Attitudes toward display ads, by gender and age, November 2012
By household income
Figure 80: Products, activities, and services researched online in the past six months, by household income, November 2012
Figure 81: Number of items researched online in past week, by household income, November 2012
Figure 82: Use of search and reviews in typical online research session, by household income, November 2012
Figure 83: Response to internet advertising, by household income, January-August 2012
Figure 84: Interaction with ads, brands, and social media in most recent online research session, by household income, November 2012
Figure 85: Responses to display ads seen in the past month, by household income, November 2012
Figure 86: Limitations on the value of online ads, by household income, November 2012
By parental status
Figure 87: Products, activities, and services researched online in the past six months, by parental status, November 2012
Figure 88: Use of search and reviews in most recent online research session, by parental status, November 2012
Figure 89: Impact of online ads on purchasing, by parental status, November 2012
Figure 90: Frequency of using the internet, by parents with children in household, January-August 2012
Figure 91: Frequency of using the internet, by marital status and presence of children, January-August 2012
Figure 92: Time spent online at home in the last seven days, by marital status and presence of children, January-August 2012
Figure 93: Time spent online at work in the last seven days, by marital status and presence of children, January-August 2012
Figure 94: Online activities conducted in past 30 days, by parents with children in household, January-August 2012
Figure 95: Online activities conducted in past 30 days, by marital status and presence of children, January-August 2012
Figure 96: Websites visited in past 30 days, by marital status and presence of children, January-August 2012
Figure 97: Websites visited in past 30 days, by parents with children in household, January-August 2012
Figure 98: Locations of internet usage, by parents with children in household, January-August 2012
Figure 99: Locations of internet usage, by marital status and presence of children, January-August 2012
Figure 100: Response to internet advertising, by parents with children in household, January-August 2012
Figure 101: Online shopping and research activities conducted in past 30 days, by marital status with children, January-August 2012
By number of items researched
Figure 102: Products, activities, and services researched online in the past six months, by number of items researched online in past week, November 2012
Figure 103: Use of search and reviews in typical online research session, by number of items researched online in past week, November 2012
By race and Hispanic origin
Figure 104: Attitudes toward display ads, by race and Hispanic origin, November 2012
By language spoken in the home among Hispanics
Figure 105: Frequency of using the internet, by languages spoken in home, January-August 2012
Figure 106: Time spent online at home in the last seven days, by languages spoken in home, January-August 2012
Figure 107: Online activities conducted in past 30 days, by languages spoken in home, January-August 2012
Figure 108: Websites visited in past 30 days, by languages spoken in home, January-August 2012
Figure 109: Attitudes and opinions about the internet, by languages spoken in home, January-August 2012
Figure 110: Locations of internet usage, by languages spoken in home, January-August 2012
Figure 111: Response to internet advertising, by languages spoken in home, January-August 2012
Figure 112: Search engine usage, by languages spoken in home, January-August 2012
Frequency of using the internet
Figure 113: Frequency of using the internet at home in last week, by age, January-August 2012
Figure 114: Frequency of using the internet at home in last week, by household income, January-August 2012
Figure 115: Frequency of using the internet at work in last week, by household income, January-August 2012
APPENDIX – TRADE ASSOCIATIONS