Tag: mobile ad spending

Retailers’ mobile ad spending to jump 52 percent in 2016

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.

Mobile Ad SpendingAside 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.

Mobile advertising budgets will rise by 38 percent in 2016

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.

Mobile Marketing on the RiseThis 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.