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BizReport : Advertising archives : September 14, 2011

BIA/Kelsey upgrades forecast, research finds telecoms getting more ad play

What do coupons and telecoms have in common? Both are getting more exposure from advertisers which is upping the engagement factor from a consumer standpoint. BIA/Kelsey has upgraded their forecast for the daily deals space as more consumers sign up and research from MediaMind finds that more consumers are engaging with telecom ads.

by Kristina Knight

According to BIA/Kelsey, the daily deals space will see a bit more action over the next four years. Their upgraded forecast predicts a 36.7% combined annual growth rate (CAGR) with sales reaching just over $4 billion by 2015; that is about one-half billion more than their March forecast. However, they do see a ceiling in which daily deals, flash sales and the like stop their rise.

"Even as more consumers sign up for deals programs and awareness grows and new markets are entered, we see a ceiling on how many deals consumers will buy, and their overall interest level in deals," said Mark Fratrik, BIA/Kelsey vice president and chief economist. "With that said, a strong foundation has already been created in the promotional ecosystem of this young industry. We believe daily deals reinforce other advertising and that related services, like instant deals and flash sales, will significantly boost income for key players."

Meanwhile new data from MediaMind finds that telecoms are getting a bit more play with consumers. According to their new study telecom ads are now the second highest vertical for both consumer engagement and ad spending. Among their findings: for every one million impressions there are 70,000 'dwells' and 1,800 clicked impressions. The key with this vertical is hitting the right message at the right time. What is the 'right time'? MediaMind finds it is early, not later, in a campaign.

"Giving the right offer to the right user early on is crucial," said Gal Trifon, General Manager of MediaMind and Chief Digital Officer of DG. "Intelligent creative optimization is a great opportunity for telecom advertisers to improve their chances at their first impression by delivering the most relevant ads."

Tags: ad forecast, BIA/Kelsey Group, ecommerce, MediaMind, online advertising

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