U.S. ad-spending to see largest increase since 2004 [report]

Mobile Advertising
Mobile advertising leads growth; will surpass radio, magazines, and newspapers this year.

Total media ad spending in the US this year will see its largest increase in a decade, according to eMarketer. Total ad investments will jump 5.3% to reach $180.12 billion, achieving 5% growth for the first time since 2004, when ad spending increased 6.7%.

US total media ad spend 2012-2018

Mobile will lead this year’s rise in total media ad spending in the US, and advertisers will spend 83.0% more on tablets and smartphones than they did in 2013—an increase of $8.04 billion. By the end of this year, mobile will represent nearly 10% of all media ad spending, surpassing newspapers, magazines and radio for the first time to become the third-largest individual advertising venue, only trailing TV and desktops/laptops. Though investments in TV advertising will rise just 3.3%, advertisers will spend $2.19 billion more on the medium than they did in 2013, making it the second-leading category in terms of year-over-year dollar growth.

Digital ad spending by channel

The surge in mobile advertising is chiefly attributable to the fact that consumers are spending more and more time with their tablets and smartphones. According to the latest estimates, US adults will spend an average of 2 hours 51 minutes per day with mobile devices this year. In 2013, daily time spent on mobile devices and on desktops and laptops was equal, totaling 2 hours 19 minutes, but this year, time with desktops and laptops will drop slightly to 2 hours 12 minutes, while mobile time will increase significantly. TV remains by far the largest beneficiary of adults’ media time, at 4 hours 28 minutes in 2014, hence its persistent lead as the top category for advertising spending.

Net digital ad revenue share

Strong, steady growth in mobile advertising will push digital ads to represent nearly 30% of all US ad spending this year. Advertisers will invest more than $50 billion in digital channels in 2014 for the first time, an increase of 17.7% over 2013. Just over one-third of that will come from mobile, but by 2018, mobile will account for more than 70% of digital ad spending.

Digital ad revenue

The accelerated rise in ad spending is being influenced in part by growing revenues from leading internet media companies, particularly those that are capitalizing on mobile revenues. eMarketer projects advertising revenues for a handful of the top US digital ad-selling companies, which collectively will represent 18.2% of total media ad spending this year—led by Google and Facebook. Google alone already accounts for more than 10% of all advertising spending in the US, and in 2016, together Google and Facebook will take a 15.0% share of the $200.00 billion total media advertising market. Mobile ads on Facebook will total 68.0% of its US ad revenues this year, up from 46.7% last year, and while Google’s ad revenues in the US won’t flip to majority-mobile until 2016, they’re shifting quickly. This year, Google’s US mobile revenues will comprise only 36.8% of its overall ad revenues, but by 2016, the medium will account for 65.8%.

These forecasts are based on a multi-pronged approach that focuses on both worldwide and local trends in the economy, technology and population, along with company, product, country, and demographic pecific trends, and trends in specific consumer behaviors. Quantitative and qualitative data is analyzed from a variety of research firms, government agencies, media outlets and company reports, weighting each piece of information based on methodology and soundness.

Are your advertising dollars delivering? To achieve the highest ROI call Lori at 877.447.0134.


US Ad Spending Trends

ad spendingKantar Media has released its latest quarterly report on US advertising spend, finding that total expenditures in Q1 grew by 5.7% year-over-year to $34.9 billion, boosted by the Winter Olympics, which added an incremental $600 million in spending. Network TV was a prime beneficiary, with roughly half of its 14.5% year-over-year growth owing to the Winter Olympics. Beyond TV’s healthy growth, other trends remained largely consistent with prior quarters.

Ad spending trends

Kantar Media figures may actually underestimate growth, as the online spending estimates only include display advertising, which the report says increased by 13% for the quarter. (By comparison, the IAB recently reported that online ad spending in the US grew by 19% in Q1.)


  • TV

TV media spending was buoyed by the 14.5% increase in network spending, which also benefited from more spending on the NFL playoffs and the Super Bowl. a 7% rise in spot TV expenditures, and an 18% hike in Spanish-language TV spend. Indeed, each measured type of TV saw a rise in expenditures, including spot TV (+7%), Spanish-language TV (+18%), cable TV (+6.2%) and syndication TV (+3.2%).

TV media expenditures grew by 9.5% year-over-year in Q1.

  • Radio

While the Radio Advertising Bureau (RAB) pegged radio revenues as being flat in Q1, Kantar’s estimates aren’t as kind, seeing a 2.4% decline from Q1 2013. Network radio was down by 5.4% per Kantar (-8% according to the RAB), national spot radio grew 6.7% (-2% per the RAB). Local radio (-4.7%) and Hispanic local radio (-10.8%) both saw decreases, according to Kantar’s calculations. Those decreases were primarily attributed to a decline in spend by the retail, auto dealer and restaurant categories.

  • Print

After mixed results in 2013, print ad spending started the year off on the wrong foot, with magazine ad spend down 1.6% and newspaper spend down 5%. (See here for more on global newspaper ad spending trends.)

Within magazine media, declines in ad spending for consumer magazines (-2%) and Sunday magazines (-5.6%) were not matched by increases in spending on B2B magazines (1.2%), local magazines (4.4%) and Spanish-language magazines (15.8%). Kantar notes that the decrease in consumer magazine ad spend owed to “severe reductions from the two largest magazine advertisers (Procter & Gamble and L’Oreal) who account for more than ten percent of total spending.”

Within newspaper media, national newspaper ad spending was flat, while Spanish-language newspaper expenditures inched up by 0.2%. Local newspapers were the only to experience a decline, by a substantial 5.8%.

  • Outdoor, FSIs, and Display

Outdoor advertising had another quarter of positive growth. Outdoor advertising finished the quarter with 2.6% year-over-year growth (the OAAA recently estimated the increase to be 1%). Spending on free-standing inserts (which represents distribution costs only) continued its solid growth, up by 4.4% during the quarter.

Display ad spend increased by 13% in Q1 on the back of larger investments by financial, retail and insurance marketers advertisers.

Top Advertisers and Verticals

Eight of the top 10 advertisers in Q1 increased their spending on a year-over-year basis, with some doing so by a considerable amount. GM hiked its spending by 55.8% year-over-year to $593.4 million, in so doing becoming the second-biggest spender of the quarter, behind Procter & Gamble (-2.6% to $773.8 million). AT&T was the third-largest advertiser (up 4.9% to $535.5 million), followed by Comcast (+5.4% to $421.9 million) and Verizon (up 24.8% to $370.8 million).

Overall, the top 10 advertisers increased their expenditures by 14.1% year-over-year during Q1.

Automotive ranked as the top advertising vertical with roughly $3.76 billion in spending, up 7.7% year-over-year. Retail was next, with a modest 1.6% increase in spending bringing in to $3.41 billion in expenditures. Telecom (up 3.8% to $2.4 billion), local services (up 7.1% to $2.36 billion), and financial services (up 4.2% to $1.98 billion) rounded out the top 5.

About the Data: Kantar’s full explanation of its methodology can be found at the link above.

Where are you placing your advertising dollars? To achieve the highest ROI call 877.447.0134 today.

Personalized Ads More Engaging and Memorable [study]

Personalized Ads
Compared to general ads, many consumers find personalized ads to be more engaging (54%), educational (52%), time-saving (49%) and memorable (45%), according to a Yahoo survey of 6,000 respondents aged 13-64. The study also found personalized ads to outperform those that aren’t personalized across a series of measures, with respondents also generally perceiving them to be relevant than non-personalized ads.

Personalized Ads More Engaging

Personalized ads’ greater perceived relevance is important given a growing body of research indicating that consumers develop unfavorable attitudes in response to poorly targeted or irrelevant marketing messages. In fact, the Yahoo research found that few consumers find ads to be relevant: just 37% indicated that most of the ads they see while browsing the internet on their PC/laptop are relevant to them, and even fewer concurred with respect to the ads they see while browsing the internet on their smartphones (30%) or while in apps on their phones (27%).

Personalization carries with it questions of privacy, but roughly two-thirds of respondents said they either find it acceptable or are neutral about publishers gather the following types of information for advertising:

  • Specific content they’ve looked at;
  • Time spent;
  • Search words;
  • Ads they’ve clicked on; and
  • Products they’ve browsed.

The degree to which consumers welcomed advertising personalization varied by category, with 77% desiring personalized retail ads, but only about one-third feeling the same way for car or entertainment options.

Such discrepancies were also true for content personalization: while 60% felt that personalization technology would improve entertainment content, only 41% felt that way about finance content. Nevertheless, some 78% of respondents desire some type of content personalization.

About the Data: Yahoo partnered with Ipsos MediaCT to survey 6,000 respondents ages 13-64, a representative sample of the US online population, about online content and ad personalization.

How are you personalizing your advertising campaigns?

Why Weekends Are Best For Financial Services Online Advertising

Financial Services Online Advertising
Consumers are more likely to convert on financial services ad campaigns on Saturdays (+16%) and Sundays (+30%).

A survey from Rocket Fuel, analyzed 2,300 ads on its platform two months, from over 200 financial services campaigns.

Other conversion factors:

  • Consumers were also more likely to convert late at night, with conversion rates peaking between midnight and 6 am.
  • Consumers were ten times more likely to convert on ads featuring special offers (other than loyalty rewards).
  • ‘Learn more’ was found to be the most effective call to action.
  • Animated ads showed lower click-through rates but significantly higher conversion rates.
  • Consumers were more likely (+8%) to click on credit card ads featuring a human face and twice as likely to convert on such ads.

Ready to take your ad campaigns to the next level? Call 877.447.0134 today.

Mobile Ad Spending More Than Doubled in 2013 [study]

Driven by Facebook and Google, Mobile Ad Market Soars 105% in 2013

Mobile Ad Spending
Last year, global mobile ad spending increased 105.0% to total $17.96 billion, according to new figures from eMarketer. In 2014, mobile is on pace to rise another 75.1% to $31.45 billion, accounting for nearly one-quarter of total digital ad spending worldwide.

Facebook and Google accounted for a majority of mobile ad market growth worldwide last year. Combined, the two companies saw net mobile ad revenues increase by $6.92 billion, claiming 75.2% of the additional $9.2 billion that went toward mobile in 2013. The two companies are consolidating their places at the top of the market, accounting for more than two-thirds of mobile ad spending last year—a figure that will increase slightly this year, according to eMarketer.

Facebook in particular is gaining significant market share. In 2012, the social network accounted for just 5.4% of the global advertising market. In 2013, that share increased to 17.5%, and eMarketer predicts it will rise again this year to 21.7%. Google still owns a plurality of the mobile advertising market worldwide, taking a portion of nearly 50% in 2013, but the rapid growth of Facebook will cause the search giant’s share to drop to 46.8% in 2014, eMarketer estimates.

The rapid pace at which mobile has taken over the company’s ad revenue share indicates Facebook’s mobile future. In 2012, only 11% of Facebook’s net ad revenues worldwide came from mobile, and last year, that figure jumped to 45.1%. In 2014, eMarketer estimates that mobile will account for 63.4% of Facebook’s net digital ad revenues. Mobile accounted for 23.1% of Google’s net ad revenues worldwide in 2013, and eMarketer estimates this share will increase to 33.8% this year.

eMarketer bases forecasts on a multi-pronged approach that focuses on both worldwide and local trends in the economy, technology and population, along with company-, product-, country- and demographic-specific trends, and trends in specific consumer behaviors. They analyze quantitative and qualitative data from a variety of research firms, government agencies, media outlets and company reports, weighting each piece of information based on methodology and soundness.

Are you using mobile advertising? Call 877.447.0134 to learn more.

IAB Releases In-Image Ad Primer

Image-based advertising, also known as in-image advertising, is paving the way for the next generation of digital display advertising. This “In-Image Advertising Primer,” offers a comprehensive overview of this burgeoning ad type, often leveraged in native advertising campaigns. In-image ads can take several forms, ranging from display ads and product information overlaid on photos to video or rich media ad units that only appear when the user engages by hovering or clicking on the ad.

The primer examines power of pictures to attract the reader’s eye and draw attention to marketing messages, while detailing how this form of native advertising enables publishers to monetize valuable real estate – images which are in-stream, which have a high probability of being viewed by consumers.

With the format in its early stages of development and marketplace acceptance, the paper illustrates in-image advertising’s effectiveness through five case studies with major brand advertisers including Activision, Cat’s Pride, Garnier, Mazda and the Northwest Dealer Group (NDG).  In-image campaigns focused on driving brand lift for awareness generate an average rise of 37 percent on that front – almost three times the industry average for awareness campaigns, according to Nielsen Online Brand Effect norms.

In-Image Advertising Inserts Relevant Ad Over Images Across the Web
Source IAB

IAD In-Image Ad Primer

Take your advertising to the next level. Call 877.447.0134 today.

Interactive Mobile and Video Ad Click Through Rates – Higher Than Standard Banners

Mobile advertising
Mobile ads that integrated interactive and animated features saw click-through rates (CTRs) multiple times higher than standard banner ads last year across a variety of verticals, reports Millennial Media in a year-in-review analysis of advertising activity on its network. For example, both automotive and education advertisers generated CTRs that were on average 3.5 times higher for their rich media and video ads than for their standard banner ads. Each of the top 10 verticals by spend saw CTRs at least 1.7 times higher, on average, for their rich media ads.

Interactive mobile ads and video ads - higher click through rates than standard banner ads
On a related note, Celtra recently reported that among all mobile rich media ads on its platform, native formats performed best for both expansion and engagement rate.

The Millennial Media data, reveals that several verticals boosted ad spending on the network by sizable proportions last year. Leading the pack was sports, with spending up 489% year-over-year, though not enough to crack the top 10 verticals by spending.

Of those top 10, which was headed by the entertainment vertical, consumer goods (#5) and pharmaceuticals (#9) grew their spending the most rapidly, up by 134% and 139%, respectively.

The study details shifts in the ways mobile advertisers integrate various functions into their campaigns. While the leading post-click actions were consistent from 2012 – application download (37% in 2012; 34% in 2013) and site search (29% each year) – others lessened in popularity. For example, campaigns were less likely to integrate social media (8% in 2013; 18% in 2012) and store locators/map views (12% in 2013; 21% in 2012).

That may be a result of the different mix of verticals advertising on the network, as some favor various actions more than others. Retail advertisers were most likely to use mobile commerce, retail promotions and store locators, while entertainment advertisers leveraged videos more than others.

The changing post-click actions also reflect different goals this past year. A plurality 30% of campaigns counted site/mobile traffic as their goal, up from just 14% a year earlier. A greater share of campaigns also had the goal of driving brand awareness (22% vs. 14%), while fewer aimed for sustained in-market presence (24%, down from 39%).

Other Findings:

  • Android accounted for 54% of platform impressions last year, up from 48% in 2012. The iOS share was also up, from 32% to 38%.
  • Some 72% of impressions came from smartphones, but that was down from 75% a year earlier. Tablet share of impressions, by contrast, grew from 20% to 24%.

Take your advertising to the next level. Call 877.447.0134 now.