Digital Ad Spend on the Rise, Thanks to Mobile
Data for mobile internet usage can vary by region. But several new posts provide insights into its growth speed in some areas, and how digital ad spend is continuing to rise in others.
The all-important China market gets reviewed by eMarketer, which reports that “In 2017, adults in China will spend an average of 1 hour 38 minutes with their smartphones.” This is an increase of 7.4 minutes per day from their previous estimates.
Said Shellen Shum, senior forecasting analyst at eMarketer: As attention continues to migrate from offline to online formats and from desktop to mobile devices, advertising dollars, too, will shift. Coupled with improvements in targeting and measurability, digital and mobile ad formats will continue to fare better than their counterparts in traditional media.”
Interestingly, the mobile internet growth may be coming at the expense of time spent watching television.
Shum continued: ““We expect online video platforms like iQiyi, Youku Tudou and Tencent Video to take viewership from traditional TV. Not only are millennials shifting toward online video, middle-age adults and seniors who are usually loyal TV viewers are also making the shift. This is thanks to the quality of original content produced by the various providers and the on-demand nature of these services, which is giving viewers control of how and when they watch content.”
But China isn’t the only region experiencing growth.
The Drum reports that “UK digital ad spend hits £10bn mark thanks to the rise of mobile.” It continues: “Digital ad spend in the UK increased by 17% in 2016 to reach £10.3bn, marking the fastest growth rate for the industry in nine years.”
The post continues: “In total, spend on mobile campaigns rose by just over 50% to reach £3.9bn. Overall mobile investments now account for 38% of all digital ad spend in Britain, and throughout 2016, spend on mobile video ads specifically doubled to £693m.”
Said the IAB UK’s chief marketing officer, James Chandler: “The rise in people consuming mobile and video content has accelerated digital’s growth rate to its highest level for nearly a decade.”
As IAB UK states: “UK media owners submit digital advertising revenue figures confidentially to PwC who then analyse the submissions and produce aggregated data that shows the size of the UK digital advertising market. Any gaps in the data are filled by the work of the Digital Adspend Advisory Board, which includes the major agency groups, and provides estimated figures for any major media owners that do not submit figures directly to the study.”
Ten years of changes are captured in this short IAB UK video: