ComScore just released its 2008 Digital Year in Review report. It starts off by posing the question, “was it half-empty or half-full?” There were certainly some huge advances in digital media with usage and innovation growing rapidly, but also some of the first declines ever in segments of the digital marketing industry. We know that long-term, digital marketing is on an upward trajectory, but the report highlights some trends uncovered in 2008 that will help us respond to the challenging market in 2009.
Here are some key nuggets from the report:
Search continues to grow
Search query volume on the five core search engines increased 21 percent in 2008 from the previous year, with Google Sites accounting for nearly 90 percent of this growth. Keep in mind, Google Sites includes not only google.com but youtube.com and blogger.com as well. The query volume was largely driven by an increase in searchers per searcher, as opposed to new, unique searchers. This may indicate a larger macrotrend of Internet users relying on search to find information as opposed to traditional channels that simply serve pre-selected content.
Economy and politics driving online activity
Not surprisingly, job search was the fastest growing website category, growing 51 percent in 2008. Coupon and classified sites also saw sharp growth as a result of the recession (46% and 27%, respectively). Craigslist grew 51% this past year, undoubtedly capitalizing on those of us looking for deals.
The election made politics one of the fastest growing categories, as well. Traffic to BarackObama.com dominated visits to JohnMcCain.com three to one.
Expect all of these categories to continue their growth in 2009, as it seems there will be continued interest in the new political environment and concerns about the economy.
E-Commerce hit with slower growth in 2008
After years of 20%+ growth, comScore reported that e-commerce experienced the slowest year of growth in 2008 since they began tracking in 2001, increasing by only 7 percent to $214.4. Of course, this is another instance of glass half-empty or half-full – a few e-commerce retailers posted record profits, like Amazon for instance (up 9% in Q4 2008 from same time last year). Overall, however, the last couple months of 2008 were especially tough, with negative growth recorded for the first time in comScore’s history of tracking.
No signs of online video slowing down
6% more people in the US viewed 34% more videos versus a year ago. Watching videos online accounts for 12.5% of users’ time on the Internet, up from 8.5% last year. YouTube accounted for two-thirds of video’s growth, growing 74 percent.
Another developing in online video is the gradual shift from short-form, user-generated content to long-form, professionally-created content such as Hulu, which grew 57 percent in the last six months of 2008. Its TV shows and movies are responsible for the average online video duration growing from 2.8 to 3.1 minutes per video.
All video online is experiencing tremendous growth, but there are early indications that publishers of content are beginning to find profitable models to distribute long-form content that consumers are also willing to pay for (either through digital storefronts like iTunes Store or receptivity to advertising).
The report also offers some key trends for marketers to think this year:
As viewing of TV and movie content online becomes more and more mainstream, it offers advertisers a new opportunity to capitalize on this highly engaged – and often difficult to reach – audience. Think about ways to take advantage of this engaged audience.
As online video and other forms of distributed content gains popularity (i.e., widgets and applications), it’s time for us to come up with some clear models of monetization.
Smartphones (including the iPhone) continue to drop in price, and new entrants such as Google’s Android phone has seemingly opened the floodgates for devices optimized for mobile Internet. Despite the economic downturn, 2009 is expected to be another record-breaking year for the mobile Internet, and as penetration and engagement soars, mobile will have to be a vital part of most advertiser’s digital strategies.
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March 3rd, 2009 at 10:57 am
With online videos on the rise, companies like GeniusRocket and xLNTads are using the power of crowd sourcing to connect individuals and companies. Through this relationship, companies are on the cutting edge of new media and individuals are gaining experience and exposure. Videos online offer limitless possibilities, especially since they are increasingly becoming longer, as this article mentions.