Internet Marketing Weekly News Update #085 February 9, 2011

Social advertising continues to make inroads.
According to eMarketer, social advertising is not only growing in absolute terms, but it is increasing its share of overall online advertising. Advertising on social networks in the US grew from 6.3 percent to 7.7 percent of total US online ad spending in 2010, reaching a total of $1.99 billion. The same trend is being repeated worldwide, where advertising on social networks grew from 4.3 percent to 5.6 percent of total online ad spending in 2010, to reach a total of $3.48 billion.

Instant success? Google cites low opt-out rate for its Instant search feature.
Google has released figures showing that only 2 percent of its users have opted out of its Instant feature, which attempts to anticipate search terms as the user types them. The net amount of convenience to the user? Google claims that Instant allows them to type an average of five percent fewer characters per search, and see results four to five seconds more quickly.

Bing and Google get into a "did-not/did-so" battle.
Bing and Google got into a war of words about Google's claim that Bing copied its search results. Bing claimed that Google manipulated click activity in order to create the desired results. In any case, only between seven and nine out of 100 searches tested produced the same results on Bing as on Google.
Search Engine Land

AOL buys The Huffington Post.
AOL, which made an ill-fated bid to acquire content when it bought Time Warner a decade ago, is trying again with a $315 million acquisition of The Huffington Post. The acquisition is AOL's largest since its split from Time Warner in 2009.
The New York Times

News Corp. launches 'The Daily', a publication for iPads.
Rupert Murdoch's News Corp. is trying to tap into the popularity of reading tablets by launching a new publication for iPads. 'The Daily' is using both a fee-based and an advertising model. It will be free for two weeks, and then require a subscription ($39.99 per year). It also has high-profile initial advertisers such as Pepsi and Verizon.

Most companies still ignoring social media comments.
A study by InformationWeek Analytics shows that while the majority of companies (56 percent) monitor online comments about their brands through search alerts and/or other methods, relatively few have a formal process for responding to negative comments on social media. Only 14 percent of companies surveyed had a process for dealing with customer complaints posted on Facebook or MySpace, and only 12 percent had a process for handling complaints posted on Twitter.
Marketing Pilgrim

Social media metrics become more bottom-line oriented.
A comparison between last year and this year of the metrics used by marketing executives to measure social media marketing activities shows that while traffic remains the number one metric (used by 68 percent of those surveyed, unchanged from last year), the biggest jumps have come in the use of conversions and revenues to measure the effects of these campaigns.
Marketing Pilgrim

Young children remain an Internet growth market.
Marketers have traditionally viewed young children as an important advertising target, and with Internet penetration rates for children under 12 still well under 50 percent, there is substantial room for growth in this market. Projections by eMarketer show internet penetration for children under 12 growing from 37 percent last year to 49 percent by 2015, with online video being a big driver of this growth.

Social sign-on could cut down substantially on site abandonment.
A survey by Blue Research found that only 25 percent of users say they complete site registrations when asked, while 54 percent leave the site and never return. Using social network identities as a universal sign-in could significantly reduce this abandonment, as two-thirds of users say this option should be offered.

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