Tag Archives: advertising spend

Digital Ad Spend at an All-Time High

According to the latest IAB Digital Adspend report, advertisers have spent a record six-month high of £3.04 billion online. British consumers spend a staggering one in every 12 minutes online, equating to 43 hours a month!

Fuelled by smartphone ownership reaching 68% of the population in June 2013, mobile advertising now accounts for 14% of all digital ad spend, which grew like-for-like by 127% to £429.2 million in the first half of the year, almost double that for the same period in 2012.

Total mobile display advertising, which includes video, increased like-for-like by 195% to £105.5 million in the first half of 2013 and for the first time, consumer goods has doubled its share in a year to 26.8%.

Another online first, the consumer goods sector overtook entertainment and media, as the biggest spender as a mobile display advertiser, and finance as the biggest spender on the digital display advertising platform.

Research also shows that the tablet ad spend for the first half of 2013 was around the £10.5 million mark, up from approximately £2.4 million for the first half of 2012. This increase in ad spend could be a result of the increase in tablet users – almost one in three consumers in the UK will be using a tablet this year, according to research from eMarketer.

By 2017, the eMarketer estimates that more than half of the UK population will use a tablet device regularly.

One explanation for such a radical increase is the increasing availability of low-end tablet alternatives. Last month, Tesco announced the launch of its own brand tablet, called Hudl, which will retail at £119, a mere quarter of the cost of Apple’s iPad!

Another reason for such an increase could be that as audiences are more accustomed with going online via mobile devices, they are becoming more ‘adjusted’ to using tablets, with the majority of tablet owners still in the 25-54 age range.

UK Tablet Users

Source: www.emarketer.com

Mini gets up close and personal with new outdoor campaign

Mini has recently launched a new outdoor campaign to increase brand awareness, which reaches out to its customers in a fun and innovative way, and has got people talking about its brand.

Over the last few weeks, as Mini drivers have travelled between Earl’s Court and West Kensington, they have been greeted by messages such as “Hey cream Mini, what’s your secret?” and “Hello blue Mini driver”, flashing up on giant digital screens. This involves a team of ‘spotters’ stationed at the end of the road, whose job it is to spot Minis driving by, and to trigger a personalised message to appear on the screen.

Mini drivers

Source: adage.com

The screens in question are known as the Cromwell Road Digital Gateway. The series of 9 screens, each of varying sizes, must all be bought together, and cost £200,000 for two weeks.

Mini’s screens form part of their new 8-week integrated campaign, aimed to celebrate and thank their customers. They are also rewarding their drivers with freebies at service stations along the road, including bacon sandwiches or smoothies on the way to work and a tank of fuel or bunch of flowers in the evening. Drivers are also encouraged to upload photos showing ways they have customised their Mini, with the chance to have them displayed on the screens.

The personalisation of marketing messages is becoming increasingly important in today’s economic climate, as advertisers seek to maximise their reach of target audience. Advertisers have long been aware of the increased engagement that message personalisation brings, and technologies such as behavioural tracking and targeting form the lifeblood of most digital campaigns today.

The Mini campaign takes a range of familiar marketing concepts – digital and outdoor, behavioural tracking, targeting and personalisation – and combines them in a new and interesting way to create a really fun brand campaign.

While this combination of technology and techniques may be out of reach for most campaigns today, it’s an exciting glimpse into what we could be seeing regularly in a few years, as the future of personalised marketing really takes off. It will be interesting to see whether (and which) brands are open to taking a risk with new concepts such as these, and exactly what benefits they can bring to a campaign.

Digital ad spend in the UK reaches record highs, surpassing the £5 billion mark in 2012 alone!

Research from the Internet Advertising Bureau has revealed a growth in digital advertising in the UK, with mobile accounting for 10% of all digital revenue in 2012.

Digital ad revenue reached an annual high of £5.42 billion last year, a record 12.5% year on year high, mobile advertising was responsible for approximately £526 million, revealing a growth of 148%!

With an increase in Smartphone ownership expected to reach 75% by end of year 2013, it is no surprise that mobile advertising has grown by an astonishing 1,601% up to £13million, even without EE’s 4G prevalent network which will only be made readily available to the majority of operators this autumn.

Mobile Advertising 2013

source: http://images.ientrymail.com/

It is also expected that the majority of search clicks in 2013 will come from mobile devices, with the prediction that mobile advertising “will undoubtedly be a billion pound medium within a few years”. Mobile has reached a milestone as marketers are becoming more attuned to the ‘always connected’ nature of consumers, who expect to engage with content wherever they are. This has resulted in advertisers encouraging consumers in all industries, to invest in integrated campaigns across online and mobile. As Anna Bartz from PwC, said: “The advertising market is shifting toward storytelling and integrated campaigns which give greater prominence to video and display formats with a higher degree of interactivity with the target audience”.

With the likes of social media sites such as Facebook, and with them recently unveiling plans for a Smartphone which it claims will “make the social network the home of Android devices, as it looks to expand its mobile advertising offering”,  it is no wonder that social media has contributed to this astonishing high turnover in digital advertising. With mobile advertising increasing from £265 million to £328.4 million in 2012, meaning that in only 3 years social media revenue has quadrupled at 383%.

Last but not least, video ad revenue is responsible for 12% of all online and mobile display advertising with an overall £160 million revenue, which has helped contribute to such a high digital ad spend in 2012.

The top five display advertising sectors in 2012 are as follows; finance (15%), entertainment and media (13%), retail (12%) and technology (9%).

Relaunch of Postar as Route heralds a revolution for outdoor media

On 26 February, Postar unveiled its new out-of-home audience research system and announced its re-launch as ‘Route’

The audience research body for outdoor advertising in Great Britain invested £19 million into investigating how the British public consumes outdoor media and is finally able to give the medium a people-centric view.

The research study, undertaken by Ipsos MediaCT and MGE Data, a GIS specialist based in Prague, used a fieldwork sample of 28,000 people to conduct the study, recording a total of 19 billion individual GPS records over the course of 9 days; the largest GPS travel survey to ever take place.

The video below shows how the new Route data was collected:

What this means for advertisers is that the door is now open to trading by audience in the future – The new research has been designed around hyper-local geography which makes it possible to plan by town, choose from 24 conurbations or the 14 BARB areas. In addition, it is now also possible to plan and trade by day-part.

One part of the original Postar does survive – the pioneering eye-tracking research that was developed by Birkbeck College, London. However, this has now been extended in order to examine in more detail how people see the world.

In particular, significant effort was made to understand the relative visibility of ads in specific environments. For example, what is the visibility of buses to people in cars compared to those walking on the pavement? Route also seeks to take into account the effects of illumination and motion (such a scrolling displays and digital formats) on the visual impact of these formats.

Route encompassed a range of outdoor environments when conducting the study, including airports, buses, the London underground and shopping centres, revealing that in an average day, a person will see approximately 27 roadside posters, 14 bus advertisements and 74 ads with each tube journey that they take.

It was also revealed that the average distance that a person will travel out of home per week is 241km at an average of 19.94 km/h. Men both travel farther and faster than women.

The research can be broken down into demographics, including age, class and lifestyle, giving a greater insight into the way in which people view and are affected by outdoor advertising

Glenn Wilson, managing director of Posterscope, has forecast that the new technology will allow advertisers to bring more innovative approaches to outdoor planning, as well as better accountability and more sophisticated reporting. It will also allow for greater integration with other data sources, both industry and proprietary, allowing more holistic evaluation of campaigns.

Road, bus and tube data is available immediately, with rail and retail coming soon and airports ready by the end of the year.

The Year Ahead

The New Year brought further predictions of gloom rather than boom, with most recent economic data telling a story of continued slow growth in 2013. The Financial Times recently reported that there are two main trends that have emerged in the shopping habits of the nation; the search for value, and the way that we shop, which is migrating to online. These trends are not dissimilar to forecasts for the media landscape in 2013, which it is predicted will also be technology driven and value seeking.

Digital Spending

Source: Four Media

There is no denying that digital has become an intrinsic part of our daily lives in the UK, influencing our routines, shopping habits and ever more prolifically, our media consumption. It is predicted that the number of UK households that own a tablet is likely to double to 10 million in the coming year, and with the advent of 4G mobile broadband, and the increasing integration of Internet-enabled TV, the pace at which our digital media consumption is evolving is impressive.

So what for media in 2013? Current advertising revenue forecasts range between 2.8% and 3.4% growth, and there is universal agreement that 2013 will see two major trends – digital media revenues will continue to outpace other channels (digital is the only media predicted to grow by double figures in 2013), and audiences will migrate to online platforms with the continued integration of mobile and internet.

This increasing transition to digital has seen a shift in how companies do business from a ‘this is how we do it’ mentality to ‘this is what we need to do’, with an emphasis on making things happen in the now. The transition from ‘what’ to ‘how’ can also be seen in the media landscape, with the benefits of a test-and-learn approach being seen across the board, with an increasing focus on digital in the media mix combined with careful understanding and management of risks. It is predicted that this year will be about starting small and learning quickly in order to capitalise on new opportunities in a rapidly evolving media environment.

Further, the point of transaction and engagement are becoming ever closer, with the year ahead forecast to be as much about data capture as engagement. The prevalence of measurable factual information will further aid in the development of targeting opportunities, meaning that communications can become more personalised than ever before.

The focus on measurability and accountability means that having the right capability in terms of analytics and insight will be essential for media agencies to give clients confidence that they will see returns on their media investment from the beginning.

Media agencies that combine a ‘be brave and learn quickly’ mentality with a thorough approach to measurement and analysis will have the opportunity to produce some impressive results in challenging times through innovative campaigns across a wide range of touch points.

Global Advertising Spend on the Rise

The global advertising market is now in a better position than at the beginning of the economic downturn in 2008 according to a global report by ZenithOptimedia.

The media agency network predicts that global expenditure in advertising has increased by 3.5% in 2011 despite the Eurozone crisis and is forecasted to increase by 4.7% in 2012. This comes in light that advertisers have built up large cash reserves following low interest rates, which are now likely to be invested into advertising.

Western Europe is expected to show smaller growth (2% in 2012), despite the London 2012 Olympics.

As expected, the majority of advertising spend will come from developing markets with a 58% share of total advertising spend between 2011 and 2014 from countries including China and Brazil.

On the other hand, in  the UK, they have reduced their 2011 ad spend growth forecast from 3.3% to 2.1%, but still expects that it will return to pre-recession levels.

Below are the forecasts by medium as provided :

  • TV growth forecast down from 5% to 1% growth (the most significant change of all media).
  • Furthermore, anticipated decline for national newspapers has been increased further from
    -1.2% to -3.3%. These figures were made prior to the closure of the News of the World, meaning it is likely to be further decreased.
  • The internet continues to grow faster moving from +7.9% to +8.3% than any other with display the fastest growing segment (driven by online video and social video).
  • Outdoor media is also down from 3.1% to 0.9%.

In 2012, the report predicts resurgence for outdoor media (owing to the arrival of the Olympics) and a stop to the decline in newspapers and magazines, once the full impact of the demise of the New of the World has been realised.

Digital to Drive Media Growth over the Next 4 years

digital advertising spend increasesAccording to a recent study by Pricewaterhouse Coopers (PwC), digital innovation is expected to boost the value of the UK’s media industry by an average of 3.7% a year over the next four years, to total £59.6bn by 2015.

The UK is expected to keep its position as the world’s fifth biggest media market in terms of value by 2015, driven by digital products.

It is predicted that the only segment of the UK market set for double-digit growth over the period will be internet advertising (11.2% annually to 2015), providing new sources of income for traditional media owners expanding onto new platforms.

In the UK, it is also predicted that the payment of subscriptions and the licence fee would keep the television industry as the most valuable media sector by 2015 with a value of $14.7bn, an average yearly increase of 4.2% over the four years.

Of the 12 countries with adspend in media and entertainment markets above $25bn, only earthquake-affected Japan and developed Germany are expected to experience slower growth than the UK.

China’s market is expected to grow by 11.6% over this period to $148.2bn by 2015. Brazil will see a similar level of growth – 11.4% to $56.7m.

France is estimated to see a 4% growth annually to a wealth of $80.9bn by 2015; Italy is expected to grow by the same figure to a valuation of $51.3bn while Spain will grow by 4.8% to a valuation of $33.5bn.

The US, still the largest global media and entertainments market by a considerable distance, is expected to record growth of 4.6% to be worth $555.3bn by 2015.

PwC concluded in their findings that the next four years would represent a “golden age for the empowered consumer” as the demand for digital experiences increases and becomes the norm.

Convenience, experience and quality are the key ingredients that matter to consumers when choosing from the menu of content and delivery channels now available. Alongside these sit participation and privilege. Consumers enjoy playing an active role in shaping their content plus they are happy to pay for privileges which enable them to “jump the queue” to get earlier access to content.

The challenge for companies is reported to be in turning these five attributes into sustainable, profitable and engaged relationships with the consumer, by offering advantages which outweigh the attractiveness of free content.