The Yankee Group’s 2007 Online Advertising Forecast, released in December, included an interesting segment called “Parity with Television” that compared spending per viewer/user. The study found that in 2006 advertisers spent an average of $276.40 for every television viewer compared with $88.70 for every online user. In 2011, advertisers will spend $313 for every television viewer and $244.40 for online users.
By 2011 online advertising “will account for 78 percent of the normalized television advertising revenue,” the report said. “People are consuming a growing percentage of media online and the ad dollars are going to shift in that direction,” said Daniel Taylor, a Yankee Group analyst.
The data was generated from standard research on the size of the audience and the amount spent. “In TV, there’s a linear relation between audience reach and ad performance; the more people you reach, the more the ad is performing,” Taylor said. “It’s not necessarily the same model with online advertising. When we start tracking interactions with web pages, it’s not just how many saw the page but whether they clicked and how much time they spent on different areas of the site.”
This statement suggests additional data is needed to compare and contrast the TV/online ad spend.
Supreme Court Allows Multibillion-Dollar Class Action Lawsuit To Proceed Against Meta
The Supreme Court is allowing a multibillion-dollar class action investors' lawsuit to proceed against Facebook parent Meta, stemming from the privacy scandal involving the Cambridge Analytica political consulting firm.
The justices heard arguments in November in Meta's bid to shut down the lawsuit. On Friday, they decided that they were wrong to take up the case in the first place.
The high court dismissed the company's appeal, leaving in place an appellate ruling allowing the case to go forward.
Investors allege that Meta did not fully disclose the risks that Facebook users' personal information would be misused by Cambridge Analytica, a firm that supported Donald Trump 's first successful Republican presidential campaign in 2016.
Inadequacy of the disclosures led to two significant price drops in the price of the company's shares in 2018, after the public learned about the extent of the privacy scandal, the investors say.
Meta spokesman Andy Stone said the company was disappointed by the court's action. "The plaintiff's claims are baseless and we will continue to defend ourselves as this case is considered by the District Court," Stone said in an emailed statement.
Meta already has paid a $5.1 billion fine and reached a $725 million privacy settlement with users.
Cambridge Analytica had ties to Trump political strategist Steve Bannon. It had paid a Facebook app developer for access to the personal information of about 87 million Facebook users. That data was then used to target U.S. voters during the 2016 campaign.
The lawsuit is one of two high court cases involving class-action lawsuits against tech companies. The justices also are wrestling with whether to shut down a class action against Nvidia.... Read More