Stats, facts and future trends – May 2016

Stats, Facts & Future Trends May 27th, 2016

This month, we discover the full extent of content marketing’s growth, why consumers would rather discover content rather than receiving it, and the new metrics of content marketing success.

UK content marketing spend predicted to more than double by 2020

Content marketing spend in the UK is set to rise 179% to £349 million in 2020, from £125 million in 2014, according to a report from Yahoo and Enders Analysis. European spend on paid placements is expected to increase by 186% by 2020 to €2.12 billion (£1.68 billion) from 2014, more than double the €1 billion expected in 2016. Marketers spent €740 million on content in 2014.

  • Content marketing and native ads will make up 64% of all paid media on mobile by 2020, worth over €10 billion.
  • This is predicted to be 73% in the UK.
  • In Germany, content marketing is predicted to grow by 330% to €413 million in 2020, compared with €96 million in 2014.
  • In France, it will be a growth of 237.7% to €179 million in 2020 from €53 million in 2014.

“The rise of content marketing reflects the increasing media appetite of today’s consumers, and reveals a growing opportunity for publishers, advertisers, and content creators alike,” said Nick Hugh, the vice president for EMEA at Yahoo. “Creative, engaging content is needed for success, and when this is coupled with a targeted, scalable solution like native advertising, the potential for greater audience engagement and conversion rockets.”

Sources:Yahoo, Enders Analysis

To read the full article, click here.

Consumers want to ‘discover’ content

While studies show that consumers frequently demand personalised and relevant communications, it appears that most also want to discover content for themselves rather than receiving it from others. Rapt Media, an interactive video provider, polled 1,000 US consumers to uncover attitudes towards online ads and content, and found that:

  • 43% believe online ads are not personalised to their interests, but almost two-thirds (62%) say the content they discover on their own is personalised to their interests.
  • Even if content is customised, 61% say they still prefer to find it on their own, while almost half (46%) say the content they find on their own influences their purchase decisions.
  • 42% of millennials say they would spend more time reading or viewing content if they could tailor it to their interests.
  • 60% of millennials report that they would be more likely to make a purchase after spending more time engaging with content.

Future of Content discovery

“Explicit content personalisation through choice and discovery builds trust, increases engagement and delivers a truly valuable experience starting at the point of creation,” said Erika Trautman, founder and CEO of Rapt Media. “Millennials, in particular, are embracing the value of content discovery, forcing marketers to rethink the way content is created, distributed and consumed.”

Sources:Rapt Media, Adweek, Warc

To read the full article, click here.

Site visits and social shares to measure content marketing success in Europe

More marketers in Europe use the number of visits to their websites as a measuring stick for content effectiveness than any other metric, according to research from HubSpot and Smart Insights. The report found that:

  • Over 75% of marketers said they checked site visits in March 2016, while 66% used social shares as a metric used to measure content marketing effectiveness.
  • Leads and SEO traffic were used by over half of those surveyed.
  • However, the traditional metric, ROI, is used less than half of the time, by just 43%.
  • The majority of marketers in Europe (55%) said they had difficulty with measurement.

So while content marketers are less preoccupied with measuring success via traditional metrics, they’re subsequently increasingly concerned with things such as developing sufficient content and figuring out how to best measure those metrics effectively.

Sources: eMarketer, HubSpot, Smart Insights

To read the full article, click here.

Marketers expected to shift more money towards desktop and mobile video ads

Roughly two-thirds of US agency and marketing professionals said they expect to increase their desktop video ad spending, as well as mobile video ad spending, within the next 12 months, according to March 2016 research. The Interactive Advertising Bureau (IAB) polled 360 in-house and agency marketers about their digital video ad budgets, and found that:

  • 63% of respondents said they expect to allocate more dollars to desktop video.
  • 62% said they expect to increase their mobile video ad spending within a year.
  • Agency and marketing professionals are also planning to increase ad spending on advanced TV, broadcast, cable and OTT TV.

It’s not surprising that marketers are investing more in their digital video efforts. According to eMarketer, the US digital video advertising market is on pace to nearly double by 2019, with mobile is spearheading that growth. Mobile video ad spending in the US jumped 81% in 2015 and is forecast to see double-digit growth through 2019. Those growth rates exceed search and other subsets of the display category, such as banners, rich media and sponsorships.

Sources: IAB, eMarketer

To read the full article, click here.

Effective measurement of content

Marketers face challenges when trying to measure the effectiveness of content marketing, but content marketing cannot be treated in the same way as broadcast media, nor should there be over-reliance on basic metrics, such as impressions, page views, video views or click-through rates. So advises Jane Ostler, the managing director of media, digital and BrandZ at Millward Brown. Other insights from her piece in Admap include:

  • Measurement of content marketing needs to include an understanding of shifts in brand perception, brand awareness and propensity to purchase.
  • The many different formats of content marketing have their own specific measures that are important for optimising within each channel, but they also need to be assessed against the bigger communications picture.
  • B2B marketers in the US allocated an average 28% of their marketing budget to content marketing last year.
  • Yet only 30% of them said their organisations were effective at content marketing, while more than half (55%) admitted they were unsure what effectiveness looked like because they didn’t know how to measure it.

“Like the content itself, measurement strategies are bespoke for each brand,” she says, “so marketers need to ask whether they are designed to enhance the brand, for example, or to enhance brand perception, or to reach a new audience. Different content channels will need bespoke metrics that allow you to optimise within that channel, but these should not be at the expense of overall assessment of what the content is delivering for the brand.”

Sources:Admap, CMI, Warc

To read the full article, click here.

Channel thinking moves centre stage

Choosing the most appropriate media channels is no longer the “second step” in planning a campaign but ranks alongside the creative idea, a new Warc report suggests. The Connection Strategy Casebook, an analysis of the winning entries to last year’s inaugural Warc Prize for Connection Strategy, highlights how media thinking has become integral to the success of the creative idea in the most effective campaigns. Highlights from the book include:

  • The Grand Prix-winning entry from Coca-Cola, #colouryoursummer, which was built around an insight into how packaging could be used to reflect teens’ desire for self-expression.
  • While high-budget campaigns overindexed in the Prize shortlist, more than half came from brands with budgets below $1m. For example, creative use of social media delivered success for EXITDeutschland, an organisation fighting against extremism.
  • Online fashion store Very.co.uk demonstrated how it targeted Christmas shoppers with a combination of Shazam technology, social media and geo-targeted creative to achieve a 23% year-on-year increase in sales.

Other takeaways from the report include the use of partners to deliver reach and credibility, the growing sophistication of communications architecture and the optimisation opportunities afforded by real-time data.

Source: Warc

To read the full article, click here.

Brands worldwide embrace Instagram

Instagram adoption among brands is nearly ubiquitous across industries. Snapchat, on the other hand, is a different story, with brands more hesitant to adopt the social messaging app. During Q4 2015, L2 Think Tank analysed more than one million social posts and nearly two billion interactions from 879 brands worldwide, and found that:

  • When it comes to Instagram adoption, almost every industry sector, with the exception of beverages and consumer electronics, is almost full penetrated.
  • For example, 100% of auto brands have adopted Instagram, while other industries such as fashion, beauty, watches and jewellery and travel, are almost fully saturated.
  • However, only a quarter of auto brands have adopted Snapchat, with just 13% of brands in the travel industry adopting the social messaging app.
  • But, adoption wasn’t low across every industry sector. Nearly three-quarters of active wear brands have adopted Snapchat, and more than half of fashion brands have also adopted it.

When it comes to post frequency, Snapchat significantly outpaces Instagram across categories. Consumer electronics brands worldwide post an average of 39 posts on Snapchat a week. To compare, they only post six Instagram posts weekly. Overall, across the different industries tracked, there are more posts a week on Snapchat than there are on Instagram.

Sources:L2 Think Tank, eMarketer

To read the full article, click here.

For social media marketers, Facebook produces the best ROI

Nearly all social media marketers worldwide believe Facebook produces the best ROI and is essential to social media marketing success, a survey by Social Fresh, Firebrand Group and Simply Measured has revealed. The survey asked 551 social media marketers worldwide to choose up to three social media platforms that they thought produced the best ROI, and found that:

  • Almost all (95.8%) said Facebook.
  • Nearly two-thirds (63.5%) said Twitter produced the best ROI, while 40.1% said Instagram did.
  • Surprisingly, only 2.1% of social media marketers said Snapchat produced the best ROI.

According to estimates, the population of Facebook will reach 1.43 billion monthly users by the end of the year. In addition, mobile will account for 82% of Facebook’s US digital ad revenue this year, with growth driven by ad revenues generated by Instagram and mobile video formats on Facebook. This year, Instagram is expected to earn $1.3 billion in the US ($1.53 billion worldwide) in mobile ad revenues, while Instagram will represent 15.4% of Facebook’s total mobile ad revenues.

Sources:Social Fresh, Firebrand Group, Simply Measured, eMarketer

To read the full article, click here.

Commissioned by The CMA
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