To more effectively reach consumers and interact with them in a one-on-one manner, businesses are increasing their digital advertising spend. Some predict global digital ad spend will rise by 17% to $327 billion in 2019. In fact, spend will likely cross the 40% mark this year for the first time. Keep these eye-opening stats and takeaways in mind as you continue refining your marketing strategy this year.
- 80% of marketers plan to increase their Amazon ad budgets in 2019.
Takeaway: While Amazon Advertising may fall behind Google and Facebook in the search world, the fact that consumers use Amazon for product discovery gives the company an advantage as an advertiser and ad network. To maximize visibility on Amazon, adopt a mix of organic and paid campaigns and pay attention to product description details. Keep your eye on conversion, customer satisfaction, and velocity, as they all influence rankings. Amazon Advertising is constantly updated, so stay in the loop and tap into vendor expertise to overcome platform challenges.
- Google Shopping Ads make up 76% of retail search ad spend and win 85% of all clicks.
Takeaway: To find success with this platform, segment by search query and product ID, place keywords within the product title, and keep your pricing competitive. Google tends to favor ads that deliver engaging experiences. Make sure your ads lead consumers to products and landing pages that are relevant, useful, and easy to interact with.
- The query “___ to avoid” has risen by 150%, and the query “is ___ worth it” has risen by 80%.
Takeaway: Research-obsessed consumers are actively looking for the worst rated brands to help them make informed buying decisions and avoid purchase mistakes. To find out what consumers discover when they search for brands, Google’s VP of Global Marketing, Lisa Gevelber, suggests you take a walk in their mobile footsteps by seeking out the most dismal of your online reviews. This will help you catch issues and identify areas for improvement. If you discover that consumers are questioning whether your brand is worth their money, create and promote content that shows them why your brand is valuable or how you’ve fixed their complaints.
- 73% of U.S. adults who watch streaming video say they watch ad-supported over-the-top (OTT) video.
Takeaway: If you’re struggling to reach young high-income earners, keep an eye on OTT video. OTT advertising allows for hyper-targeting that delivers more relevant ads and a better viewing experience. But before including OTT in your media plans, first educate yourself about the landscape and its best practices. Also, when developing an OTT strategy, focus on enabling personalized interactions, giving consumers control over their experience with interactive ads and the ability to select what they want to watch.
- 64% of consumers take action after seeing an ad during a live video stream. Brand recall, clickthrough, and site visitation are the primary actions provoked.
Takeaway: Because consumers are drawn to raw, real-time footage, live stream videos have the power to help build brands. To prevent your ads from being seen as intrusive, deliver relevant ads to the right audiences on the right devices while maintaining the integrity of the viewing experience for each user. Keep in mind that pop-ups, pre-roll, and sponsored-by ad units are the ads most visible to consumers.
- Consumers are 67% more willing to buy a product after seeing a mobile video shoppable ad with an invitation to ‘Learn More.’
Takeaway: Merging commerce and content is a strategic way to engage consumers. Encourage consumers to take action when viewing your shoppable video ads by using creatives such as CTAs, which prompt consumers to learn more about your product before facing ‘shop now’ language. Allow consumers to learn more without leaving the page. Let them directly shop for products from your ad and limit your mobile video ad length to around five seconds.
Mobile App Advertising
- In 2019, the number of apps using in-app advertising will grow by 60%.
Takeaway: Leverage existing apps to get your brand in front of new customers and provide additional touch points for existing users through paid placements. Partner with brands that offer app promotions or content, can provide a safe environment for your creatives, and understand your KPIs.
- More than eight of 10 mobile ad dollars in the US will be allocated to in-app advertising by next year.
Takeaway: This stat indicates increasing competition in the mobile app landscape. To deliver an engaging ad experience, use artificial intelligence tools to gain real-time insight into your ad performance. And when crafting ad formats, make user experience a top priority.
- Users who had never made an in-app purchase were four times more likely to make a purchase after engaging with value exchange videos.
Takeaway: Place your video ads in apps that your target audience engages with the most, showing them only resonant personalized video ads. Keep your ads short, and have them fill the screen so that users must view to continue.
Digital Audio Advertising
- Podcast ads deliver significant lift in purchase intent and brand recall, outperforming digital display ads by almost five times.
Takeaway: Podcasts are an emerging marketing medium that have the power to reach on-the-go consumers in ways traditional media cannot. Before advertising on podcasts, identify the products your target podcast audiences spend their money on and find out which podcast genres are a good fit for your campaigns.
- 60% say they have purchased something after hearing it advertised on a podcast.
Takeaway: Podcasts deliver a “lean forward” listening experience that leads to strong responses. When advertising on podcasts, use host read ads and experiment with ad types such as pre-roll, mid-roll, and end-of-show ads to see which drive the most results. Use measurement tools like promo codes, vanity URLs, and checkout surveys to understand the impact of your advertising efforts.
Digital Display Advertising
- The share of digital spend allocated to display advertising is expected to remain flat over the next four years.
Takeaway: While display advertising may not be drawing more money in marketing budgets, it’s safe to say that marketers still find value in it. Utilize the medium by incorporating retargeting techniques and maximizing ad placement. Additionally, combine search and display advertising to drive maximum results from your online marketing efforts.
- Banner ads are 120% more effective than video ads when it comes to mobile advertising.
Takeaway: Though banners ads aren’t as glamorous as video ads, they remain an important component of marketing. To encourage consumers to click your banner ads, stick to simple design and messaging, and test your creatives.
- Programmatic is projected to represent over two-thirds of all digital display ad spend worldwide in 2019.
Takeaway: While programmatic advertising may be the future of media buying, a large portion of ad fraud occurs in programmatic marketplaces. To defend yourself, employ ad verification tools and analytics, use trusted platforms, and arm yourself with as much knowledge as possible. Challenge agencies and your partners to improve their reporting and level of transparency.
As the digital advertising world spins madly on, these stats present some ideas on how to spend your marketing budget and effectively reach today’s consumers. Pay attention to how brand partnerships and product placements work together. Consider hiring a brand safety officer to deal with safety issues. Finally, data privacy concerns are still on the rise, so inform customers on how you’ll use their data, give them control over their data, and treat their information with care.