Magna forecasts global online ad spending surge Porter assumes Four A's chairmanship GyroHSR names Segal worldwide president BPA board approves audit, rate changes Alliance Data System to buy Equifax unit Newspaper advertising revenue decline slows IAB

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Worldwide online advertising is expected to rise 12.4% this year to $61 billion, according to a new report from MagnaGlobal, the forecasting unit of advertising holding company Interpublic Group of Cos. In addition, the report noted that paid search has become the most important component of online advertising; Magna expects pay-per-click ads to account for $29.8 billion in expenditures, up 16.5% over the 2009 total. All other online channels combined will grow 8.7% this year, the company said. Magna also forecast that this growth trend will continue, with an annual 11% growth rate through 2015. Chuck Porter, chairman of agency Crispin Porter+Bogusky, has been named chairman of the American Association of Advertising Agencies (Four A's), succeeding Tom Carroll, president-CEO of TBWA Worldwide. Porter, who had been vice chairman, will serve a two-year term as board chairman. In addition, Sharon Napier, CEO, Partners+Napier, has been named secretary-treasurer, to fill an officer vacancy on the board. Napier served as secretary-treasurer from 2005 through 2009. GyroHSR has named Rick Segal worldwide president-chief practice officer. The agency said the move signaled a “deeper strategic commitment to the global b-to-b marketing services segment.” Segal was previously GyroHSR's CEO-North America. He will continue to serve on the agency's board. GyroHSR was formed last year by the merger of Gyro International and HSR Business to Business. Segal co-founded HSR in 1981. The BPA Worldwide board has approved sweeping changes in how the organization audits member brands and how it charges for those audits. The board, however, rejected the controversial proposed changes to paragraph 3b of the audit statement, which would have eliminated the requirement for print publications to report whether subscribers have been qualified in the past year, two years or three years. Some vocal opponents argued that the proposed change would weaken the audit process. BPA said the changes that ultimately were approved “will transform BPA Worldwide from a legacy print media measurer to that of reporting the consumption of the media brand across all platforms.” Essentially, the board approved changes that will make the Brand Reach Audit the de facto standard, rather than the print circulation audit. Alliance Data Systems Corp., parent of multichannel marketing company Epsilon, has reached an agreement to acquire the direct marketing services division of Equifax Inc. for $117 million. The Equifax unit offers database marketing and hosting, as well as data services that include U.S. customer demographic information. The unit and its approximately 200 employees will be integrated into Epsilon's targeting and marketing technology group. The transaction is expected to close in the third quarter of this year, pending regulatory approval. Overall newspaper advertising revenue declined to $5.98 billion in the first quarter, a drop of 9.70% from the year-earlier period, according to Newspaper Association of America figures. It marked the industry's best overall quarterly performance since the third quarter of 2007, which was also a decline. Online ad revenue posted a 4.90% gain to $730.42 million. It was the first quarterly gain since the first quarter of 2008. Overall print revenue fell to $5.25 billion, a decline of 11.42%. Classified ad revenue fell to $1.25 billion, a decline of 14.37%. The Interactive Advertising Bureau announced the formation of a Tablet Task Force that will help develop an infrastructure to support advertising on tablet computers and e-readers. The task force is led by Bob Carrigan, CEO of IDG Communications, and comprised of online publishers and interactive advertising executives. The group is charged with defining best practices, building an infrastructure for ongoing growth and providing guidance on the development of ad standards for tablets and e-readers.
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