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New Communications Review:Advertising Industry Trends and Forecasts

Wednesday Dec 19, 2007

According to recent report by the New Communications Review (a publication of the Society for New Communications Research, a nonprofit think-tank dedicated to the advanced study of new communications tools and technologies), the latest industry research revealed the following new trends:

Social Networking developing into a global phenomenon
This year, Asia will account for 35% of the world’s social networking users, with 28% of users in Europe, the Middle East and Africa, 25% in North America, and 12% in the Caribbean and Latin America, according to a recent report from research firm Datamonitor Plc.

1 in 5 listeners visit local radio websites
According to The Media Audit, their study (conducted between fall 2006 through spring 2007 in 88 local U.S. markets) finds that Entercom Radio in Buffalo, New York ranks as the second highest radio web site group behind Cincinnati Clear Channel with an 8.5% reach with adults 18+, followed by: Clear Channel Radio in Lexington, Kentucky (8.2%), Clear Channel Radio in Tampa-St. Petersburg, Florida (7.7%), and Clear Channel Radio in Houston, Texas (7.6%).

Among the top five local radio groups, the largest increase was observed with Clear Channel in Lexington, where unique monthly web site visitors increased by 163%. According to a press release issued by The Media Audit, nearly one in five online users now visit a local radio station web site in a typical month, representing more than 18 million adults. A year-over-year analysis also reveals that 21 local radio station clusters achieved or exceeded a 6% market reach with their aggregated web sites.

U.S. mobile phone users want better internet capability
44.7% of those surveyed by The Kelsey Group and ConStat say a mobile phone with better Internet capability will be a key factor in their next mobile phone purchase decision. According to the survey, only 26% of mobile phone service subscribers currently opt for an Internet access plan.

In the past six months, notes the study, 9.8% of respondents used their mobile phones to conduct Internet searches for products and services in their local area. During the same period, 10.7% downloaded or looked at maps, while 10.9% indicated they had downloaded search or mapping applications for use on the Internet to supplement those that came with their mobile phones.

Mobile ads to surpass online ads in India
The new trend is gaining speed to the point that it has industry professionals speculating that it could very easily soon surpass online advertising. According to a study by Thomas Weisel International, online advertising in India will predictably reach a peak by the end of 2009, which is when mobile ads are supposedly going to skyrocket, according to a report in Business Standard.

Rajiv Khanna, Meridian Mobile CEO, stated to Business Standard: “The cellular growth in India is faster than that of personal computer penetration and this will result in huge opportunities for advertisers. The emergence of high-end handsets and portable devices would also result in advertisements moving away from the Internet.”

84% of journalists use blogs as sources
According to the Arketi Group 2007 Web Watch Survey, 84% of journalists say they would or already have used blogs as a primary or secondary source for articles. 100% of those (journalists) surveyed say they rely on the Internet to help get their job done. One-quarter of journalists say blogs make their job easier, while 18% say instant messaging makes their job easier.

Dr. Kaye Sweetser, assistant professor of public relations at the University of Georgia, said, “This survey shows that business journalists are embracing user-generated content like blogs, webinars and podcasts in their day-to-day reporting.” 90% of journalists say they turn to industry sources for story ideas, an equal number get story ideas from news releases, and a nearly equal number say they tap into public relations contacts.

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