Tag: mobile advertising

The retail sector is expected to dominate digital advertising spending from now to 2020.

According to the most recent forecast from New York-based market research company eMarketer, retailers – who already invest the most in online and mobile ad spending – are going to spend the most on digital advertising in the United States through 2020; spending an estimated $23.04 billion in paid digital media ads. This represents a compound annual growth rate of 12 percent over a period of five years.

Digital ad spending is forecasted to surpass TV ad spending in 2017.

This year, alone, the market research company predicts that retail marketers will pay $15.09 billion in digital ads, which is a 15 percent jump from last year and accounts for 22% of online ad spending in the US.

Aside from retailers, eMarketer’s estimates show that the automotive industry will remain the second largest digital ad spender through 2020, with car marketers potentially spending $8.7 billion on digital ads in the US in 2016 and up to $14.14 billion by 2020.

Following the automotive industry is financial services, which is forecasted to invest $8.37 billion in 2016 and $12.4 billion by 2020. Taking the fourth and fifth largest digital ad spender spots is Telecom and consumer packaged goods, respectively.

With the digital ad spending growth expected to continue, eMarketer predicts that next year, companies will spend more money on digital ads than TV advertisements.

An estimated two-thirds of retailers’ digital ad budgets have shifted to mobile ad spending.

This year, approximately $10.09 billion of retailers’ digital ad budgets have shifted to mobile. In order to keep up with online shoppers, eMarketer forecasts that retailers will boost their mobile ad spending by 52 percent in 2016, which is up from their 2015 budgets.

This jump in mobile advertising investment for this year does not come as much of a surprise as more and more consumers are engaging in mobile shopping. According to Forrester Research, by 2018, mobile commerce will account for over 50 percent of all e-commerce transactions.

That being said, currently, not all US mobile users are entirely comfortable with the full shopping and buying experience over their mobile devices, with many finding the experience frustrating. Still, buying aside, mobile has completely altered how consumers conduct their pre-purchase research.

Mobile commerce is projected to grow both in the US and globally, which is motivating retailers and other industries to not only focus on shelling out for digital ad spending but mobile ad spending, too.

Equally, when it comes to GenX consumers, longer video advertising seems to make a connection.

The results of the “Multiscreen Video Best Practices” research report have now been released by the Interactive Advertising Bureau (IAB) following its research into mobile ads in conjunction with Tremor Video and Millward Brown Digital.

They determined that 10 second mobile video advertisements have the greatest effect on Millennial viewers.

These shorter videos as mobile ads were most effective for that generation in terms of their persuasion potential and overall brand appeal. On the other hand, when it comes to appealing to people between the ages of 35 and 54, thirty second videos appeared to have a much greater impact in those two areas. According to the report “Our research shows that for some demographics and some adverting goals this doesn’t hold up. These findings are critical in creating the next generation of multiscreen video advertising.”

As a whole among mobile ads, it was the 30 second videos that had the greatest advantage over all audiences.

Despite the fact that 10 second spots were most effective among Millennials, audiences of all ages did agree that the mobile video ads that were 30 seconds long had a very important advantage of being better for being able to communicate new or complex messages. Among the respondents of a survey who were asked about the amount of new information an ad had provided, 73 percent said the thirty second ads were most effective (versus 68 percent who said the same about the 10 second ads).

The respondents also indicated that larger screens assisted in effectively sharing a message of moderate complexity. Seventy three percent of those polled said that the mobile video advertising they saw on tablet screens were good at sharing new info with them. Comparatively, only 65 percent said the same thing about smartphones.

Moreover, the research determined that tablet video mobile ads are especially engaging among consumers within the 35 to 54 year old age group. Respondents in that category indicated that the advertising they viewed over those larger screens was more “unique”, “interesting” and “involving” than what they saw on other device screens.