Stats, facts and future trends – December 2015

Stats, Facts & Future Trends December 14th, 2015

This month, we discover which social network will be dominant for marketers in 2017, the key marketing trends over the next 12 months, and which age group are more obsessed with technology.

Marketers turn to Instagram

Facebook and Twitter are the top social networks currently used by US marketers but Instagram will replace Twitter in the next two years, according to a new report. The study by eMarketer also found that some 88.2% of companies with more than 100 employees use social networks for marketing purposes, and that figure is set to edge upwards to 88.9% in 2016 and 89.4% in 2017.

  • Facebook is the dominant network, already being used by 84.7% of companies, rising to 85.3% and 85.8% over the next two years.
  • Around two thirds (65.8%) use Twitter and it too will see marginal gains – to 66.6% and 67.2% – over the same period.
  • However, Instagram is growing fast. In 2015 it was being used by 32.3% of marketers and that is projected to increase to 48.8% in 2016.
  • Instagram is projected to overtake Twitter in 2017, when 70.7% of companies will be using it for marketing purposes.

It’s only within the past few months that Instagram has opened up advertising on its site to all brands as part of a major global expansion programme. Before that, advertising opportunities had been restricted to a select group using the platform in the US, UK, Australia and its five other established markets.

To read the full article, click here

Key marketing trends for 2016

A digital backlash, the explosion of video formats, and the need to fuse data analysis with creativity are amongst the key challenges facing marketers in 2016, according to a new report produced by Warc in collaboration with Deloitte Digital. The ‘Toolkit 2016’ report examines six marketing trends for the year ahead, and found that:

  • The digital backlash includes issues such as viewability, ad fraud and ad blocking, all of which been rising up the agenda in recent months.
  • The debate about big data has moved on and data-driven creativity is now a focus. Fusing data analysis and creative development will be a major theme of the year ahead.
  • Data also features prominently in another trend – moment marketing, where data and tech are deployed in tandem to identify brief opportunities to put the right message in front of the right consumer.
  • The emphasis on Millennials will start to shift to Generation ‘swipe’, as the influence of mobile-savvy Generation Z (generally aged under 18) becomes more important in the marketplace.

Nick Turner, Partner at Deloitte Digital, said that 2016 will see content and creativity return to the fore of marketing thinking.“Technology, data and analytics have dominated the marketing conversation in recent years,” he said. “Whilst these remain core threads in this year’s report, there is an increased focus on content in a multitude of formats to penetrate the ever-decreasing attention spans of connected consumers.”

Sources: Warc, Deloitte Digital

To read the full article, click here.

How many apps do smartphone users use?

With thousands of new apps appearing every week, the smartphone user has a near-infinite choice of what to download. But how many do they actually use – and for how long? A number of research companies have been investigating these questions and found that:

  • 46% of respondents use one to five apps per week, while just 35% use six to 10.
  • However, according to another study, most apps are not even retained for a full day.
  • At the end of a 30-day period, only 3.3% of Android apps and 3.2% of iOS apps still had active users.

Apps installed for organic reasons, as opposed to the result of paid app-install ads, were more likely to be retained. After 30 days, an organic app install was 156% more likely than an ad-induced install to result in continued usage on Android phones, for example.

Sources: eMarketer, Localytics, Research Now, Pew Research Center

To read the full article, click here.

UK media agencies adapt to ad tech

Almost nine-in-ten media agencies in the UK (86%) are evolving their businesses to reflect the growing influence of ad tech, but nearly half (47%) find it harder to monetise compared with traditional media, a new survey has shown. Based on responses from 200 senior media agency practitioners, digital marketing firm AdRoll found they may need some help to make the best use of the emerging technology.

  • The survey revealed that 40% of respondents find it hard to develop profitable models around their ad tech partnerships.
  • However, 90% of agency staff say they have a close relationship with their ad tech partners.
  • More than half (56%) also say they have benefitted from productive collaborations, developing data-driven solutions that allowed more time for creativity and strategy, while 46% agree ad tech is helping to provide clients with solutions at more competitive rates.
  • Meanwhile, 88% say the rise of ad tech means media planners are now evolving into data analysts and 83% say both buyers and planners are evolving into account managers and creative consultants.

Marius Smyth, managing director of AdRoll EMEA, suggested ad tech companies have a responsibility to help agencies best use emerging technologies to deliver results and best practice. “We often highlight the transparency offered by data – let’s back that up with a promise of transparency and openness to help agencies combat concerns such as monetisation so they can leverage ad tech to deliver results for clients that are profitable,” he said. “The industry must come together to be open, transparent and comfortable with learning and improving as we go. That way, we will all prosper on the promise of ad tech.”

Sources: Warc, Adroll

To read the full article, click here.

Middle-aged more tech-obsessed than the young

A new report examining the relationship between age and technology usage during meal times has busted the myth that young people are more tech-obsessed than their older peers, with middle-aged diners more likely to be interacting with some form of screen. Nielsen’s ‘Global Generational Lifestyles Report’ found that:

  • While 46% of 15-20 year olds in generation Z spent meal time’s technology-free, just 41% of baby boomers aged 50-64 could say the same.
  • The report = dispelled notions that younger generations are more reliant on digital sources for news, with the youngest of those surveyed (15-20) and the oldest (65+) equally likely to cite newspaper websites as their primary source of news at 18%.
  • However, when it comes to TV news websites and search engines, the young are a more likely than the oldest to make use of them at 16 vs 14% and 26 vs 23%.
  • These differences are even more pronounced when it comes to social media, with Generation Z close to six times more likely than Generation Z to cite the medium as their preferred news source at 45 vs 8%.

“Millennials may have the biggest reputation for being glued to their connected devices, but older respondents are more likely to be distracted in this way during mealtimes at home than their younger counterparts,” said Terrie Brennan, Nielsen EVP of advertising solutions for Europe. “It’s a sign that today’s consumers are bucking yesterday’s preconceived generational notions and, in fact, many older people are embracing a more technology-driven world.”

Sources: The Drum, Nielsen

To read the full article, click here.

Ads annoy mobile users in the UK

In recent research conducted by Instantly, UK mobile device users’ primary attitude toward paid mobile placements isn’t positive, with 55% calling mobile ads annoying and disruptive. The research also found that:

  • 24% of respondents were content to look at mobile ads in exchange for free content.
  • However, 9% hoped for something better in exchange, such as special deals.
  • 11% of respondents said that they ignore mobile advertising.

Unsurprisingly, the best way for marketers to avoid mobile annoyance is to be relevant and try not to disrupt. More than half of respondents to the Instantly survey said they would click on mobile banner ads if they offered services that fit their immediate needs. And nearly half of internet users in Great Britain surveyed separately in October by the Internet Advertising Bureau UK (IAB UK) and YouGov said they were less likely to block ads that did not interfere with what they were doing.

Sources: eMarketer, Instantly, IAB UK, YouGov

To read the full article, click here.

YouTube rivals TV for young viewers

According to a new Ofcom report, young UK teens are now more likely to prefer watching YouTube videos than TV programmes. Based on 1,279 in-home interviews with parents and children, the ‘Children and Parents: Media Use and Attitudes Report’ found that:

  • 29% of 12-15 year olds would rather watch YouTube videos compared to the 25% who chose TV first.
  • This marks a turnaround from a similar study in 2014, when 25% opted for YouTube first and 30% for TV.
  • The proportion of online 12-15 year olds who think that that the information on news websites and apps is “always true” has roughly doubled in the past year, from 8% to 14%.
  • One in five 12-15 year olds using search engines believed that if these list information then it must be true. But half were able to make some type of critical judgement about search engine results.

That faculty did not extend to spotting the advertisements thrown up in the course of a search. When shown a picture of results returned by Google for an online search for ‘trainers’, their attention was drawn to the first two results at the top of the list, which were distinguished by an orange box with the word ‘Ad’ written in it. Just 31% of 12-15 year olds correctly identified these sponsored links as advertising. However, they fared better in regard to vlogging, as 47% were aware of the potential for vloggers to be paid for endorsing products or brands.

Sources: Warc, Ofcom

To read the full article, click here.

Mobile display gives way to content in Asia

Asia’s mobile marketers expect to make greater use of content over the next five years and to reduce their reliance on display-based advertising, according to new research. The ‘State of the Industry: Mobile Marketing in Asia’ report found that:

  • 70% of marketers currently use display advertising but just 44% plan to use it in five years’ time.
  • Content is set to take pole position, with adoption rising from 33% today to 49% by 2020.
  • Asia currently leads the world in mobile marketing, with users across the region much more likely to use their smartphone as the first point of access to brands.
  • However, just 54% of those surveyed have a formal mobile marketing strategy in place.

“Confidence in the channel’s importance continues to rise and the investments speak for themselves,” said Edward Pank, managing director at Warc Asia Pacific. “The ongoing challenge now is that today’s consumers expect much more of their mobile content and experience. So in order to keep up, marketers need to hone their skills further and innovate strategically.”

Sources: Warc, Mobile Marketing Association

To read the full article, click here.

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