Stats, facts and future trends – April 2016

Stats, Facts & Future Trends May 3rd, 2016

This month, we reveal the huge increase in UK content marketing spend, the appeal of video for content marketers, and whether to go short or long with mobile video.

Content marketing powers ahead in UK marketing spend

UK digital adspend grew 16.4% on a like-for-like basis in 2015, the fastest rate of increase in seven years, with content and native advertising spend increasing by 49.9% to £776m. Conducted by PwC, the latest Internet Advertising Bureau (IAB) Digital Adspend report showed that:

  • Total spending on digital advertising reached £8.6bn last year, with the majority of growth (78%) coming from mobile.
  • Mobile spending amounted to £2.63bn and now makes up almost one third (30.5%) of all digital advertising.
  • Video ad spend was up 50.7% to £711m. And video spending on mobile doubled (98%) to £353m as more and more people chose to watch video, TV and film on smartphones.
  • Ad spend on social media sites grew 45% to £1.25bn and now accounts for 41% of banner/video display ad spend

Tim Elkington, Chief Strategy Officer at the IAB UK highlighted the growing number of devices people now use to go online as a factor in helping digital ad spend “hit another gear as advertisers look to reach them and time spent online increases”.

Source:IAB UK

To read the full article, click here.

Content marketers look to video

New research by the Content Marketing Association (CMA) has revealed that the majority of content marketers believe that brands aren’t investing enough in video content and more than half expect to increase spending in this area over the coming year. The CMA surveyed 100 senior level client-side marketers as well as media agencies such as Saatchi & Saatchi, Carat and PHD for its report, which found that:

  • 58% of marketers planned to increase the proportion of their budgets going to video content in the next 12 months, with almost a third planning for an increase of up to 50%.
  • On average, 78% of content marketers currently spend up to a quarter of their marketing budget on video content.
  • Over half of those surveyed cited mobile as their primary channel for branded video content, with a third also putting mobile as the biggest growth area for video.
  • Nearly a third of content marketers believe that it’s possible to accurately measure the ROI of branded video content.

Clare Hill, managing director of the CMA, suggested that video content budgets would see “exponential growth” over the next year “as video continues to excel in importance and value for brands”.


To read the full article, click here.

Attention divided in the living room

While the TV may still be a dominant presence in the UK’s living rooms, it faces a new battle for attention in the ad breaks. According to data from the Internet Advertising Bureau UK , with research carried out by brand strategy consultancy Sparkler, the type of activity people get up to has radically changed in the past decade. The research found that:

  • 35% use a connected device during TV ad breaks, making it the most popular type of activity by some distance.
  • Only 5% said they watch the ads in full.
  • Some digital activities were more popular during viewing time than in the ad break. For example, 25% of UK internet users said they did their online shopping whilst watching TV vs. 20% who did so during the break.

This type of simultaneous media consumption is becoming an increasingly common habit in UK living rooms, even during times when the TV takes on a more central role. September 2015 data from RadiumOne indicated that Christmas viewing was likely to be a multiscreen affair in the UK during 2015’s festive season.

Sources: eMarketer, IAB UK, Sparkler, RadiumOne

To read the full article, click here.

Ad blocking moves into the mainstream

Ad blocking is gaining ground in the UK. By the end of next year more than a quarter of internet users in the UK will be using ad blocking software, according to eMarketer’s first-ever estimates of ad blocking in the UK.

  • 27% of internet users, or 14.7 million people, will be choosing to stop digital ads on at least one of their devices by the end of 2017.
  • Of the 10.9 million people who currently block ads, the majority (90.2%) do so on a desktop or laptop PC.
  • Meanwhile, 28% block ads on smartphones.

“There’s no doubting that ad blocking is now a very real issue for advertisers,” said eMarketer senior analyst Bill Fisher. “Next year, over a quarter of the people they’re trying to reach will be wilfully making themselves unreachable. The good news is that numbers like this have forced those within the industry to think long and hard about what it is that they need to do better in order that this practice doesn’t become an epidemic.”

Source: eMarketer

To read the full article, click here.

Shorter is better for mobile millennials

Ten-second mobile video ads have greater brand appeal and persuasion potential for millennial audiences than 30-second ones, but the reverse is true for an older audience, new research has shown. A study by the Interactive Advertising Bureau in partnership with Millward Brown Digital and Tremor Video looked at responses to two ad executions, one of ten seconds, one of 30-second reports, and found that:

  • As well as preferring shorter ads, millennials were particularly sensitive to mobile ad clutter.
  • Overall, audiences agreed that 30-second mobile video advertising was better for communicating new or complex information.
  • When asked about how much new information was provided by an ad, 73% of those surveyed gave high marks to 30-second ads, compared to 68% for ten-second spots.
  • Tablet video was found to be more engaging with older, 35-54-year-old consumers, who described ads on these devices as more “interesting,” “unique,” and “involving” than those on other platforms.

“The conventional wisdom is that all video ads on mobile screens must be short in order to resonate with audiences,” said Joe Laszlo, Vice President, Industry Initiatives, IAB. “Our research shows that for some demographics and some advertising goals this doesn’t hold up. These findings are critical in creating the next generation of multiscreen video advertising.”

Sources: IAB, Millward Brown Digital, Tremor Video

To read the full article, click here.

Why don’t marketers personalise content?

While technology can help marketers personalise at scale, a lack of it is also the biggest reason execs say they don’t personalize their content, according to February 2016 research. A study of US marketers by Demand Metric and Seismic found that:

  • More than half (59%) said they do not personalise content because they don’t have the technology.
  • 59% said they don’t have the bandwidth or resources, while 54% said they don’t have the required data.
  • 6% of marketers said they tried to personalise content, but it didn’t work well.

However, there are benefits to using personalised content. More than half of senior marketers worldwide polled in CMO Council’s June 2015 survey said that using enriched or personalised content and digital interactions brings higher response and engagement rates. More timely and relevant interactions, as well as greater customer affinity were other leading benefits of personalised content.

Sources: eMarketer, Demand Metric, Seismic, CMO Council

To read the full article, click here.

Social media aids path to purchase

More than half (56%) of consumers who follow brands on social media sites say they do so to view products, while nearly a third (31%) say they use these channels to browse for new items to buy, a new survey has found. After polling more than 2,000 adult consumers, loyalty research firm Aimia also found that:

  • Images on social media sites can help to inspire or influence purchasing behaviour, especially among younger consumers aged 18 to 35 in the clothing and fashion category (66%).
  • For older consumers aged 55 and above, the top five purchases inspired by images on social networks are gifts (36%), technology (33%), food and drink (31%), clothing and fashion (28%) and holiday destinations (26%).
  • 41% follow brands to look at new ranges when they launch and 35% do so to get ideas about what to buy when they next go shopping.
  • In terms of the most popular social media sites for direct purchases, Facebook comes top (19%), followed by Twitter (10%), Instagram (9%), Pinterest (7%) and Snapchat (5%).

“Social commerce offers a real opportunity for retailers to shorten the path to purchase for customers,” said Jan-Pieter Lips, president of international coalitions at Aimia. “As it stands, social media platforms are acting as a sort of catalogue, but many customers still go elsewhere to purchase the product.”

Source: Marketing Week

To read the full article, click here.

The role of trust in brand building

Being perceived as an innovator is the most important marketing action for creating trust in an FMCG brand, according to analysis of the purchasing behaviour of 12,000 European consumers. Europanel, a global partnership between research firms GfK and Kantar Worldpanel, conducted a major study in early 2015 into the three biggest brands in 30 FMCG categories across nine European countries to establish the connections between trust and brand success. Europanel consultant Dr Oliver Koll outlined the findings in industry publication Market Leader, saying:

  • “Innovation by a brand is more strongly related to trust than a presence on social media or advertising perception. Perceived promotional activity, on the other hand, has no impact on trust and actual levels of promotion are related negatively to trust.”
  • “Brands relying too much on price discounting to move their product may undermine the credibility of their offering,” Koll added.
  • Another effective marketing lever for brands seeking to build more trust is to develop a reputation for being “current” or “modern” because this perception is more important than having a long heritage or being seen as a local icon.
  • One in six European consumers said they would be prepared to pay a higher price for the top tier brands.

In a final piece of advice for brands, Koll said: “High trust creates a virtuous circle: it helps gain more buyers, which in turn links to higher levels of trust. While the study shows that some brands may start from a more difficult position (because of their category, buyer base or country average), any brand can gain trust – but it needs to defend this position continuously.”

Sources: Market Leader, Warc

To read the full article, click here.

Commissioned by The CMA

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