We’re approaching an advertising tipping point in 2016. According to research we at PwC released in June, internet advertising revenue is projected to overtake broadcast TV advertising revenue. It’s a shift that represents more than strictly an increase in internet connections.
It’s the ability of brands to reach consumers throughout their day across multiple devices that will help drive global total internet advertising revenue from US$135bn in 2014 to a predicted $240m in 2019 (compared with broadcast TV spending, which is forecast to rise to $192bn, up from $162bn in 2014.)
Companies that precisely instrument, capture and analyse user interactions across multiple devices develop a more complete picture of how potential customers interact with their marketing messages. Analytical insights can also be used to more precisely target potential customers and provide brands and businesses with the confidence that their advertising channel mix is yielding the desired actions and returns. Measurement, however, is only part of the story.
Advertisers have seen significant changes in the ways they reach their target buyers. Consumers want flexibility, freedom and convenience in when, where and how they consume content. Advertisers are challenged to better understand when and where time is spent, and adjust where they direct their spending accordingly.
While broadcast TV ads historically were the advertising platform of choice for brands seeking to maximise their reach, internet advertising has already overtaken television advertising in key markets such as the UK (pre-2010), China (2011) and Australia (2014). That being said, television is not a channel to be ignored.
The impact of ads delivered through traditional channels, such as TV ads played during the Super Bowl (more than 110m viewers in 2015), often are accelerated through complementary internet strategies to drive user engagement. Leading-edge advertisers are stitching together offline and online consumer experience while focusing on creating compelling, innovative and interactive internet experiences.
For brands and businesses, the “device-agnostic” consumer view enabled by the internet opens the door for more interactive, personalised and measurable advertising.
More like this