Tag: mobile ad spend

BIA/Kelsey research has shown that this one area is taking a considerable share of marketing budgets.

Marketers are increasing their mobile ad spend in very specific areas. New research shows that both sponsored content and native advertising are becoming an increasingly important focus.

This is particularly true since mobile ad blocking has become such a popular practice among consumers.

The BIA/Kelsey chief analyst and vice president of content, Michael Boland, said that “Native social advertising is the big headline of this forecast.” He added that the FAN and news feed add success from Facebook has provided a new perspective on advertising. As a result, “we’ve dialed up native social’s share of the mobile ad revenue pie.”

Trends in mobile ad spend have also shown that Snapchat and Instagram are moving in similar directions. These include changes to boost the attractiveness and impact of native social formats for marketers.

The report also underscores the falling mobile ad spend when it comes to banner advertising methods.

Even before this report was published, it was clear that banner ads have already fallen out of favor on Facebook. The platform determined that they don’t have very much value when compared to native and video advertising methods.

Boland also explained that the growing use of ad blockers has only accelerated the mobile marketing industry’s trends. As a whole, mobile advertising is moving away from banners and toward material that is immune to blockers. This primarily includes content marketing.

Boland stated that the millennial generation is also being taken into account. For them mobile ad spend on native social ads is more important than any other adult generation. Therefore, marketers grabbed hold of this style and use it to take aim at this extremely important demographic.

This shift is clearly visible through Snapchat. That platform is exceptionally popular among the younger generations.  It recently made some marketer-friendly changes. Among those changes include the automated application programming interface (API) designed for its ad partners. With rapid growth in its user base and great engagement metrics, Snapchat uses native advertising over any other method. It is completely free of banner ads and while this may seem limiting, it has been vital for user trust.

A new report by Outsell has shown that digital ad budgets will rise, while print ad spending will fall.

Outsell has now released a report that has shown that digital and mobile advertising budgets will be increasing in 2016 while at the same time the amount of budget dedicated to print ads will be on their way down.

The research looked into the spending preferences of marketers, finding that top priority went to companies’ own sites.

After websites, the next largest amount of the ad budget went to television and e-mail marketing. That said, the report pointed out that social marketing was a growing trend. Mobile advertising would be seeing a significant boost in the amount companies were dedicating specifically to that channel, as well. That said, on the flip side of the coin, non-digital methods of advertising, such as custom print, direct mail, print directories, and ads placed in newspapers and magazines are all continuing to droop due to a growing consumer dependence on digital techniques for placing brands and messages in front of consumers.

Mobile advertising comes with the significant advantage of placing ads in front of consumers at any time.

This is something that print simply cannot achieve. Social is particularly effective in that effort, especially over platforms such as Facebook and Twitter as companies seek to boost engagement with their target market through the new social brand building and lead generation tools that are now easily accessible to businesses of all size.

Outsell’s report predicted that mobile marketing advertising spending could increase by 38 percent by the close of the year. Social ad spending will also be increasing, but by 15 percent.

Mobile advertising will have risen to $23 billion in spending and is now considered to be the fifth largest form of digital marketing, immediately after social and search. Marketers appear to have made the discovery of its true value in 2015 and are now scrambling to use this channel to be able to reach consumers through a range of different ad formats. Fifty four percent of marketers have said they will be focusing their mobile ad spend on various types that reach consumers by way of apps.