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eMarketer Reports

Despite signs that the economic recovery is losing steam, the outlook for online holiday sales remains upbeat. Still, the uncertain economy does pose complex challenges for retailers’ holiday season preparations. How they manage inventory will be a critical success factor, so smart retailers are working more closely with supply-channel partners to deal with different consumer-demand scenarios.

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Mobile phones have become a staple of daily life, so much so that most consumers can hardly imagine going through the day without one by their side. The reliance on mobile devices for just about everything makes mobile a platform that content publishers and marketers cannot afford to ignore.

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The pharmaceutical industry is one of the largest US advertisers. In spite of shifting regulatory hurdles and economic malaise, direct-to-consumer (DTC) ad spending on prescription drugs increased in 2009, largely on the strength of blockbuster brand promotion in traditional mass-market media.

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Social network advertising is getting renewed attention in 2010. Ad spending on social destinations in the US will reach $1.7 billion this year and cross the $2 billion mark in 2011, according to eMarketer’s most recent forecast. In addition, spending is growing quickly outside the US. Worldwide, $4.3 billion will be spent on social networks in 2011, a 29% boost from this year’s expected $3.3 billion.

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In 2009 nearly half of all teen internet users bought goods such as apparel, books and music online. An even higher percentage would have made such purchases had they more spending money and access to a credit card. Several payment alternatives like debit cards and student accounts not only enable teens to buy on the web but also let parents set spending limits and monitor payment activity. Yet rather than offer these options, many retailers seem content to drive online teenagers to their physical stores.

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eMarketer estimates that over two-thirds of UK internet users ages 14 and older will buy something online at least once per month in 2010. Between 2011 and 2014, the number of monthly online buyers will rise from 27.2 million to 30.8 million.

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Online video viewership has increased steadily in the US in the past several years, and eMarketer’s forecasts call for continued growth through at least 2014.

A growing portion of the video audience is watching TV shows and movies online, reflecting a shift in the content mix from short user-generated clips to full-length professional content. This shift is the result of a confluence of factors, including the greater availability of long-form content, the popularity of venues such as Hulu and broadcast TV sites, technology developments and internet users’ growing comfort with online video. Sports programming is also moving swiftly into this realm, with mega-events such as the Olympics, March Madness and the World Cup reaching tens of millions of viewers through live streaming.

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