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.

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Mobile & Video Ads Deliver More per Impression

mobile video ads
In the first quarter of 2014, the vast majority of digital marketing spend across display, social, video and mobile was allocated to display ads (83%), which delivered 84% share of actions. Video (4% share of impressions) and mobile (1% share) ads each outperformed in terms of share of actions, with video accounting for 6.5% share and mobile 2.5% share. While social captured 12% of impressions, it accounted for a relatively smaller 7% of actions, likely due to its influence being more in the upper funnel.

Mobile & Video Deliver More Per Ad Impression

The study finds that as was the case last year, social ads continue to outperform portals, networks and exchanges in “reach efficiency,” which measures channels’ efficiency in reaching new users and takes into account cost-per-unique-user.

About the Data: For the Q1 2014 Neustar Media Intelligence Report, data was compiled from a representative sample of its customer base. This includes 28 billion impressions across approximately 152 billion ad events. Data represented in the report covered over 1300 different inventory providers across key vertical industries such as CPG, Education, Entertainment, Health, Media, Retail, and Telco.

How are you using mobile and video? To learn more call Lori at 877.447.0134.

Mobile Ad Spending to Overtake Display Ads by 2016 [study]

Mobile Advertising
Mobile ad spending is growing at such a rate that it will soon overtake display advertising to become the second-largest digital advertising channel in the US, according to PricewaterhouseCooper’s annual Entertainment and Media Outlook study. The study forecasts a 22.1% compound annual growth rate (CAGR) for mobile advertising from 2013 through 2018, versus a 9% CAGR for internet advertising as a whole. As such, mobile should account for 29.2% of online ad revenues by 2018, almost double its share (16.6%) from last year. That translates to a projected spending of $19.2 billion on mobile advertising in 2018, from $7.1 billion last year.

Online-ad-revenues

Another rapidly growing channel is online video advertising, predicted to grow at a compound annual rate of 19.5% from 2013 through 2018. But video ad revenues are growing from a smaller base, and will constitute a relatively smaller 10% share of the digital advertising pie in 2018. The analysts note that video ad revenue is growing in response to increasing audiences. Online video ads did indeed reach a larger share of the online population last year, although the huge growth in online video ads viewed during the year was more the result of viewers being exposed to ads much more frequently.

Meanwhile, paid search will continue to dominate the online advertising market through the forecast period, although its share will decline. Last year, search captured 43% of all digital advertising dollars, with that figure projected to drop to 37% by the end of the forecast period. That’s partly the result of search dollars moving to mobile, per a recent report from the IAB and PwC.

Do your ad campaigns include mobile? Call Lori at 877.447.0134 to learn more.

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%.

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Facebook Right Behind Google In Ad Spending [survey]

Facebook Mobile Ads
Mobile now accounts for more than 22% of all US digital ad spending, compared with less than 3% in 2010

US mobile ad spending is expected to near $9.6 billion in 2013 and account for a whopping 22.5% of all digital ad investments, according to new figures from eMarketer. The channel’s incredible growth—considering mobile represented just 11.9% of digital ad spending in 2012 and less than 3% of digital budgets in 2010—comes largely as consumers shift time spent from desktop to mobile devices, which has caused a significant redistribution of revenues for some of the world’s largest ad platforms.Facebook and Google are both major drivers and recipients of this growing market, domestically and internationally.

The latest forecast of US ad spending, the rapid growth of mobile ad revenues at Facebook has helped make the social network the second-largest digital ad seller in the US, behind only Google.This year, Facebook will take in 7.4% of net US digital ad dollars, or $3.17 billion, while Google will account for nearly four in 10, or $17.00 billion.

Microsoft’s share of US digital ad revenues will fall from 6.2% last year to 5.9% this year. Microsoft’s $2.53 billion in ad revenues, which include advertising not only from the company’s web properties, but also from Xbox and Skype services, will grow to $2.87 billion by 2015, though not fast enough to hold or increase market share. Twitter will take in a comparatively small $420 million in US ad revenues this year, estimates—about a 1% share.

On a worldwide basis, Google and Facebook are also the top two ad publishers, with 31.91% and 5.64% of the market this year, respectively.

Just like on the desktop, Google and Facebook grabbed the greatest shares of net US mobile ad revenues, with Facebook jumping from 9.0% to 16.0% between 2012 and 2013.

Globally, Google dominates the mobile ad landscape, with a 48.76% market share. Facebook has seen its share of global mobile revenues explode this past year, growing from 5.34% in 2012 to 16.91% in 2013.

Mobile internet ad spending worldwide will grow 105.9% to top $18.15 billion in 2013, up from around $8.82 billion last year. It now accounts for 15.2% of all digital ad dollars spent globally, up from just 8.5% last year.

eMarketer bases all 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 as well as trends in specific consumer behaviors. We 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.

Take your advertising to the next level. Call 877.447.0134.

Google Testing New Mobile AdWords Look

In the screenshot below, notice the new eye-catching yellow ad icon next to the display URL.

The bright new label replaces the much more subtle “ad” that rests next to the “i” icon in the current design. The new “Ad” label especially pops because the standard yellow ad background is also gone.

Adwords Mobile Ad Test No Background Yellow Ad Icon

Now both the organic listings and ads are in white boxes that sit in front of a new gray background. The gray background behind the Google logo and search box has been removed.

Here’s the current mobile search results look:

Adwords Mobile Results Yellow Background

-SearchEngineLand

Take your advertising to the next level. Call Lori at 877.447.0134.