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Chart of the week: The potential of social media advertising Social media’s share of the worldwide advertising market is growing. It was worth some US $43.78 billion in 2017 and accounted for some 18 per cent of the total digital advertising market. The US market is by far the biggest in the world, having generated some $21 billion. That's a 22 per cent share of the total US digital advertising market. The European social media advertising market was worth about $8 billion in 2017, not even half the size of the US market. In China, 11 per cent of the digital advertising revenue comes from social media. And, as our chart by Statista shows, around the world, mobile is much more important than desktop targeted social media advertising. While all markets are poised for growth, it's China where most growth is likely to occur, almost doubling its revenue in the years to come and catching up with where America stands today. These developments of course mean that traditional media publishers’ fight for their share of digital ad spend is ongoing, as social media is gaining attractiveness with advertisers. https://de.statista.com/statistik/studie/id/36293/dokument/digital-advertising-report-social-media-advertising/
Chart of the week: Playable ads poised for growth Getting any app promoted and downloaded by users is an increasingly difficult game. That's why interactive or playable ads have grabbed the attention and imagination of many app developers. According to a survey by AdColony, 46 per cent of leading app developers they asked (of which many are in the gaming industry) said this format has their full attention in the year ahead. This is double the share playable ads got last year (25 per cent). Playable ads are a form of so-called app-install ads, which have become an increasingly important way of promoting apps. They are mini games in banner format which can be played by users and give them the opportunity to "test drive" a mobile game before downloading the proper app. Letting users have a taste before committing to the app ensures that the churn rate will stay low and more users will stick with it for longer. Also, all moving pic formats are held in high esteem by the app marketers - from full screen video (26 per cent) to social video (13 per cent) and in-feed video (six per cent).
Chart of the week: A quarter of global ad spend goes to Google and Facebook Global ad spend across all formats and platforms is expected to rise to US$98.3 billion in 2017. That's according to research company WARC's report "Global Ad Trends". Only this year, has digital ad spend overtaken TV as the biggest recipient of ad dollars. (https://www.fipp.com/news/insightnews/chart-of-the-week-digital-finally-killed-tv) However, not all digital publishers are having a ball. A closer look at the figures explains why the champagne corks aren't popping all over the digital publishing world. Most of the digital ad spend worldwide (61 per cent) is going to Google (44 per cent) and Facebook (18 per cent). Even if you count in ad revenue across all media, the digital duopoly still snaps up a quarter of all ad dollars spent this year. WARC's ad spend database covers 96 markets worldwide. https://www.warc.com/newsandopinion/news/mobile_is_the_worlds_secondlargest_ad_medium/39673
Chart of the week: Digital (finally) killed the TV star Television reigned supreme over the advertising market. It has been a long time coming, but finally, this year, digital has dethroned TV, according to data collected by business intelligence agency Magna Global. (https://www.recode.net/2017/12/4/16733460/2017-digital-ad-spend-advertising-beat-tv ) In 2017, around 209 billion dollars were invested in to digital ad spend, while TV's share stood at 179 billion dollar in 2017. So, there should be the festive feeling in digital publishing, now awash in ad dollars. What stresses many is the distribution of those ad dollars. Indeed, Google and Facebook are snapping up a very big chunk. According to recent data provided by eMarketer (https://www.emarketer.com/Article/Google-Facebook-Tighten-Grip-on-US-Digital-Ad-Market/1016494), the mighty duopoly "is now expected to rake in a combined 63.1 percent of US digital ad investment in 2017." The others are left to squabble over the rest.
Chart of the week: Where will the marketing money be spent in 2018? Creating content is the top goal for marketing pros around the world. According to figures compiled by communications and marketing agency Cognito, 61 per cent of the 165 marketing leaders they interviewed for a survey named creating content as the area where more of their marketing budget will be invested in 2018. This makes sense, as in the previous report only 18 per cent of respondents were happy with the content they could market. Investor relations (71 per cent) and public affairs (69 per cent) featured in the two top positions of areas where investment will remain the same. The top loser according to the survey will be traditional advertising, with 40 per cent of marketing leaders wanting to invest less. These developments could have negative implications for traditional media outlets, as the volume of content published or disseminated by company marketers could more strongly compete with traditional publishing content. Diverting dollars from traditional advertising could also negatively affect heritage media ad revenue.
Chart of the week: Where ad spend is growing most Ad spend can be taken as an indicator for wider economic and political developments, and more narrowly speaking it's an indicator for the media as to what it can expect in terms of ad revenue. Zenith expects worldwide ad expenditure to grow by 4.2 per cent in 2017, which would translate in to 559 billion US dollars by the end of the year. Most growth since 2016 was recorded in Eastern Europe & Central Asia, where spend grew by close to 10 per cent, still recovering from a sustained decline since 2014. North America outperformed Western and Central Europe. Zenith argues "political and economic uncertainty in the UK drags down growth." The Middle East and North Africa was the only region where ad spend declined, coming down by 18.6 per cent, due to deflating oil prices and political turmoil. Because markets across geographical blocs have very diverse markets, Zenith has for example broken down Asia into sub-blocs: Fast-track Asia, countries with rapid adoption of Western technology and practices (such as China), and Advanced Asia (Australia, New Zealand, Hong Kong, Singapore and South Korea.) Japan is its own category.
Chart of the week: Media side of ad campaigns grows more important Running an ad campaign is a pretty intricate undertaking. Many variables contribute to either success or failure. In general, you can discern three broad parts you need to consider. Firstly, you have the actual creative good, the advertisement itself. Secondly, you have the media planning aspect, as you need to decide how, where and when to get the ad out. Last but not least, as you don't start at zero, but are most likely working with an established brand, you have preexisting specifics (e.g. price or brand penetration). According to a recent study by Nielsen, there is a shift taking place as to which aspect is deemed how important in contributing to a lift in sales. While the creative aspect of the campaign still is the most important factor (49 per cent), ten years ago this side of the campaign was thought to contribute up to 65 per cent. Nielsen argues due to breakthroughs in data and technology "media is playing a much larger role than before." 500 packaged goods campaigns were considered for the study. https://www.ncsolutions.com/wp-content/uploads/2017/09/NCS_Five-Keys-to-Advertising-Effectiveness.pdf
Native Advertising Trends 2017 - The Magazine Media Industry 2nd annual survey on native trends in the magazine industry. Published by the Native Advertising Institute and FIPP.
Chart of the week: Feeling tracked and the counter-measures against ads The internet has opened up untold benefits for marketers and the online advertising industry. The data trail provided by possible consumers makes targeting specific audiences easy. This way personalised advertising can help the industry maximize the return on ad spend. However, the consumer doesn't always feel comfortable with being followed around the web. According to the "Statista Survey Advertising & Privacy 2017" (https://www.statista.com/study/49088/personalized-advertising/), 86 per cent of respondents often or occasionally realise that their online behaviour is being tracked and used for ads. While 37 per cent do not take any counter-measures, the remaining 63 per cent take action, such as using an incognito window in their browser, to shake off the digital tail. Albeit, only 14 per cent do this always. Contrasting the findings of other studies there are people out there who are rather spooked out by personalised ads, or knowing that they're being followed. Digital media, marketing their web space for personalised ads, need to at least acknowledge that some of their audience is aware and wary of being followed. And, the customer cannot be coerced to be turned on by cookies.
FIPP World Congress 2017 speaker presentation: Nikolay Malyarov, PressReader Advertising deep-dive
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