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Nearly two-thirds (63%) of smartphone users worldwide use their device every at least once every 30 minutes, according to an IAB report published today (June 13), with ad recall on such devices registered at 86% on mobile web, and 90% in-app. The findings were released in the trade body study entitled ‘Always On – A Global Perspective of Mobile Consumer Experience’, which surveyed users across the globe and found that over a fifth (22%) tap into their phones every five minutes. Respondents came from North and South America, Asia, Europe, and Africa with the majority of them reporting that they access the internet via mobile web and mobile apps at least once a day (mobile web – 88% and mobile apps – 84%). Meanwhile, awareness of advertising on both mobile web and on mobile apps was high among respondents, with nearly half claiming they took action after seeing ads on such devices, with the two platforms performing similarly in generating consumer response (45% on mobile web and 47% on mobile apps)....
It’s not a surprise Facebook and Google have stayed ahead of everyone else. The two platforms have focused on two key areas: personalizing advertising and those mobile trends we just examined.
Last month, Facebook announced that they have a billion mobile-only users -- not a billion users of the mobile app, but a billion people for whom the entire Facebook experience takes place on mobile. Google has invested its vast resources into mobile search, and in May 2015, more than 18 months ago, it said that “More Google searches take place on mobile devices than on computers in 10 countries including the US and Japan.”
Our industry faces a well-known duopoly, with Facebook and Google commanding an ever-increasing share of digital ad spend, both in the U.S. and globally. I recently dug into the data and forecasts available, to better quantify (for my own benefit and hopefully yours!) just how much Facebook and Google are eating digital.
Global ad spend, across all channels (digital, TV, print, radio, outdoor, etc.) is growing annually on average by 5.6 percent from 2015 to 2020, and will reach $674 Billion from $513 Billion in 2015.
The U.S. market will represent 35 percent of the global ad market, reaching $234 Billion by 2020 with a slightly slower growth rate compared to the global average, at 5.0 percent from 2015 to 2020. This is expected as rapidly developing markets in the East and a growing middle class represent new markets on which advertisers can focus.
45% Of U.S. Ad Spend Will Be Digital
33 percent of ad spend in the U.S. was digital last year and that is expected to reach 45 percent by 2020. In real numbers, that’s a $60-billion market growing to $105-billion, with a Compounded Annual Growth Rate (CAGR) of 11.9 percent.
The growth of digital is more than 2 times higher than the growth of the overall ad market, which represents a tremendous opportunity for digital businesses. More people are accessing content online and more advertisers are spending their budgets online. Will the rising tide lift all ships?...
I was struck by the recent research that 60% of clicks on mobile banner ads are accidental. The main contributing factor was identified as fat finger syndrome. With mobile on track to become the third largest advertising medium, accounting for 12% of all ad spend, that’s an enormous disconnect. Of course it’s not fat fingers that are to blame. It’s the state of mobile design....
We’re in the age of instant gratification. Almost everything we could possibly need is just a click away. Smartphones are actually changing the way we research products and make purchase decisions.
In the last year alone, there has been a 115% increase in shopping searches coming from smartphones (Google internal data). And these searches are becoming more focused. We want to know which product is the best, who has it for the lowest price, and where it can be purchased nearby.
So how do you give shoppers what they need with a limited screen size, fewer search results, and a difficult transaction process? Google is hoping to make headway in this area with their rollout of new changes that help shoppers find and buy what they’re looking for faster....
A new report from mobile intelligence firm NinthDecimal provides new insights into the influence that mobile devices have on shoppers.
Based on data from Q2 to Q4 in 2014, the Mobile Audience Insights Report discusses how the use of mobile phones and mobile advertising are changing consumer engagement. Significantly, the research found that store visits increased by 80% upon viewing a mobile advertising.
In addition, 54% of consumers used their mobile devices to shop for products, compared to 46% on laptops. This represents a 59% increase from Q4 2013 to 2014 and shows the growing significance of mobile in our lives.Shoppers are increasingly turning to their mobile devices to shop....
In a new piece of research issued by PayPal in collaboration with the market research company Ipsos, mobile commerce is growing at nearly three times the rate of overall ecommerce at a global level, the data reveals.
From 2013 to 2016, the multi-country average compound annual growth rate (CAGR) for Mobile commerce growing three times faster than e-commerce
Mobile commerce is projected at 42% versus 13% for overall ecommerce (including mobile commerce).
Mobile commerce volume has grown significantly from 2011 and. currently,mobile accounts for 20% of its overall purchase volume worldwide, from 1% in 2010....
Last week represented the first time in history that more people used mobile phones and tablets to visit online stores than using computers. Looking at data from over 100,000 ecommerce stores that use the Shopify platform, we saw 50.3% of traffic coming from mobile (40.3% from mobile phones, 10% from tablets) and just 49.7% from computers.
We have been watching and talking about the mobile commerce trend for years, but now there’s no disputing it: mobile commerce is now the default way that people shop online._
The rise in mobile phone traffic to online stores is partly being fuelled by the overall trend of social-fuelled discovery becoming a major marketing channel. For example, while Facebook accounted for less than 5% of traffic to ecommerce sites on desktop, that number jumps to 7% when looking at mobile phones. In comparison, search based traffic from Google represented 18% of traffic from computers, but just 12% on mobile phones. This data seems to show that computers are being used to search for more commodity-type goods, while social media and mobile are used for more spontaneous, discovery-based purchases....
The success of mobile as an advertising medium depends on shifting people’s perceptions about what advertising looks like....
According to new research, the performance of the Mobile Rising Stars is the strongest evidence that creative ad formats far outshine traditional banner advertising.
The study compared the same advertising creative from cookie manufacturer OREO, displayed in both traditional banner and the six new Mobile Rising Stars formats such as the “Slider” and the “Film Strip”,The study compared the ad interaction and brand uplift of static banners with Mobile Rising Star formats, which provide a mix of in-content, expandable, pushdown and overlay advertising, all incorporating rich media functions.
The standout finding from the research, for me, concerned brand recall: almost every user (98%) who viewed a Mobile Rising Star ad recalled the name of the brand advertised – almost a fifth more than those who viewed the standard mobile banner ad.Furthermore, those who interacted with a Rising Star ad were 23% more likely to recall the brand messaging than those who viewed a traditional static banner. This is powerful evidence that consumers want to be able to control whether or not they initiate and interact with ads....
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Mobile advertising has grown faster than any other medium in the last four years and is now a significant proportion of online advertising revenue. Initially, it struggled to match the success of mobile app usage and consumer spending. Early mobile advertising formats such as banners have been borrowed from other online media rather than built to best exploit the very different mobile medium. While older formats may have been relatively easy to implement at scale, they have not been built to address the challenges and take advantage of the opportunities that mobile provides. Third party in-app native will continue to grow, at an annual average rate of 70.7% While first party in-app native will continue to be the largest revenue driver, third party in-app native will continue to grow, at an annual average rate of 70.7% and will account for 10.6% of all mobile display advertising at $8.9bn by 2020. However, the paths to adoption of native advertising vary for different types of mobile publishers. A flexible approach which puts the user experience at the heart of the advertising strategy is crucial for the success of native....
It’s been a year of milestones for mobile, and it appears that another threshold will be reached this year: mobile devices are close to capturing the majority share of US online ad revenues, according to the latest revenue report [pdf] from the IAB and PricewaterhouseCoopers. Indeed, mobile devices accounted for 47% share of online ad revenues in the first half of this year. That’s a huge jump from 30% share of revenues during the first half of 2015. With mobile advertising growing at a rapid pace – up 89% year-over-year in H1 – it’s not hard to imagine that they’ll claim a majority of online ad revenues by year’s end. Overall, online ad revenues increased by 19.1% year-over-year during H1 to $32.7 billion, though growth was not distributed evenly across formats: - Desktop search spend decreased by 12%; share of total spend declined to 27%; - Mobile search spend more than doubled (a 105% increase)....
Mobile video ads are poised for massive growth in the next five years. Revenues from these ads will grow from $3.54 billion in 2015 to $13.3 billion in 2020, which marks a 30% compound annual growth rate (CAGR), according to PwC's annual Global Entertainment and Media Outlook report. This means that mobile video ads will be the fastest-growing digital ad segment in the next five years. They will easily surpass desktop Internet video ad revenues, which are expected to grow at a 19% CAGR through 2020. Furthermore, revenues from mobile ads are set to surpass revenues from desktop video ads this year, with $5.6 billion for mobile and $5.1 billion for desktop, according to the report....
A new study on native advertising from Facebook and IHS Inc. accompanies new stats from Facebook on its Audience Network — the mobile ad network that recently branched out from in-app to mobile web publishers. According to the new report, by 2020, media buyers will spend $84.5 billion on mobile advertising with mobile accounting for 75.9 percent of all digital ad spend globally. Native will be as significant driver of mobile ad growth. Native in-stream ads will drive 63.2 percent of all mobile display advertising at $53 billion by 2020. The study anticipates third-party in-app native advertising (ads not running on Facebook) will be the fastest growing ad format in digital advertising and will grow at 70.7 percent compound annual growth rate between 2015 and 2020 to account for 10.6 percent of mobile display ad spend....
We call ourselves individuals and strive for individuality, but as we become more connected, more mobile and more reliant on technology, we are actually becoming two selves —one physical and one digital — or as we call it, Human2.
This is the notion that each of us exists in the real world and the digital world at the same time.
This duality of the consumer becomes a real challenge for brands and marketers, who, for the past decade, have focused on marketing to a consumer based on the type and functionality of the device they are using. Over this time, consumers have changed as mobility and always-on accessibility have made them more aggressive and less patient.
They demand quick and easy access to information, deals, and content, along with the ability to react to it in an instant. And most of all, consumers want to understand the value a product or service will bring to their lives....
When we speak of mobile advertising trends we usually think as far as a couple of months to a year from the present. That’s all well, but what’s more interesting is what will happen three to five years from now.
According to eMarketer, mobile internet ad spending will grow to $94 billion worldwide by 2018. Furthermore, Ericsson reports that there will be 10 times the amount of mobile data traffic by 2019. All signs point to mobile advertising growing more than we can imagine, and as with anything, it has to evolve if it wants to stand the test of time.
With that said, here are five mobile advertising trends you can expect to see by the year 2020...
2014′s been a pretty good year for PR happenings and case studies in crisis management. From Uber to Ray Rice to scientists in naughty shirts, from ice buckets to British Airways, the year has been especially generous with teachable publicity scenarios.The outpouring of finely distilled, distractingly quotable PR know-how that flowed from these events has been just as generous, to, and twice as nice.In a word, we in PR kicked some serious tail in 2014 – and we got the quotes to prove it!....
Data aggregator eMarketer has published a revised set of ad-revenue forecasts with an emphasis on mobile. The firm projects that mobile advertising will account for an increasing share of display revenue and represent nearly 50 percent ($14.5 billion) of all display advertising by 2017.
Google will capture more than 50 percent of global mobile ad revenue this year; Facebook is gaining, however. According to eMarketer, Facebook’s share of mobile ad revenue will grow from just over 5 percent last year to almost 16 percent this year.
In terms of the broader category of global digital ad revenue, Google and Facebook are again #1 and #2 estimates eMarketer. The former will control almost 33 percent of total digital advertising revenue vs. 5.4 percent for Facebook (left chart below). Google’s overall digital ad revenues are expected to come in at $38.6 billion this year, with nearly $6.4 billion for Facebook
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IAB research shows why mobile marketing matters.