Stats, facts and future trends: September 2016

Stats, Facts & Future Trends October 4th, 2016

This month, we look at why more advertisers are using mobile video, the ideal video length on Facebook, why more isn’t necessarily better when it comes to content.

Teens use YouTube and Gmail more than social networks

Research has found that despite the huge popularity of social networking among teens, more respondents reported using Gmail than Snapchat or Facebook. The National Cyber Security Alliance and Microsoft polled 804 US teen internet users aged 13 to 17 about their digital activities and found that:

  • 91% of US teen internet users said they used YouTube.
  • Gmail ranked second on the list, with three-quarters of teens saying they used the email app – more than social sites and apps including Snapchat, Instagram and Facebook.
  • This year, 17.5 million social network users between the ages of 12 and 17 will use a social network at least once per month.
  • By 2020, that number will grow to 18.2 million.

Source: eMarketer
To read the full article, click here.

Why more advertisers are turning to mobile video

2016 has offered increasing signs of the rise of mobile video advertising, with eMarketer predicting spending on the format will grow by rates of 20% or more through 2017. According to April 2016 research by outstream video advertising platform Teads, US brand professionals are flocking to mobile video because of its ability to:

  • increase brand awareness (44%).
  • reach more targeted audiences (34%).
  • increase favourability of the brand (26%).

Yet even with the increased interest in and spending on mobile video, many brand professionals readily admit that challenges remain. According to the same Teads study, 29% of respondents noted consumers have shorter attention spans on mobile, while 28% also mentioned concerns about the viewability of mobile video ads and the devices’ smaller screen size.

Sources: eMarketer, Teads
To read the full article, click here.

A quarter of social users ignore brands

Usage of newer social platforms is growing rapidly, but more than a quarter of internet users around the world say they “actively ignore” social posts or content from brands, according to a new report. The findings come from the latest ‘Connected Life’ study from research firm Kantar TNS, which looked at the digital attitudes and behaviours of 70,000 internet users across 57 countries. The study found that:

  • 26% of respondents globally indicated that they went out of their way to avoid branded content, a figure that rose to 57% in Sweden and Denmark.
  • 34% of consumer said they feel “constantly followed” by online advertising.
  • 40% of 16-24 year olds said they trust what people say online about brands more than “official” sources, such as newspapers, brands’ own websites or TV adverts.
  • Almost one quarter (23%) of internet-users are now on Snapchat, a huge jump from just 12% two years ago.

social media

This development has been fuelled by people’s desire for “instant, entertaining content from friends, peers and influencers, often enhanced by fun filters and editing”, according to Michael Nicholas, Global Director at Kantar TNS.

“There is a real opportunity for brands to tap into this trend by creating ‘personalisable’ and shareable content, such as videos and stories,” he said. “The challenge is how to focus the right content to the right people, on the right platforms and at the right moments.”

Source: Kantar TNS
To read the full article, click here.

More content isn’t better

Over the past year marketers have tripled the volume of brand content they produce but all that additional material is not generating greater levels of consumer engagement, according to a new study.

In ‘Marketing Truth or Marketing Hype?’, marketing analytics firm Beckon analysed the marketing spend and performance data for 203 brands, representing over $16bn in marketing investment across 120 countries, and stated that:

  • Total customer engagement with that content, in terms of views, clicks, likes and shares, had remained flat from year to year.
  • Just 5% of branded content garnered 90% of total consumer engagement
  • With one retailer creating 50,000 original content assets just for the US market and a consumer brand creating 29,000 pieces of original content in one region alone, it is clear that there can be significant waste.
  • Money spent on creating advertising and other content was up 50%, but working media growth rates were only up 7%.

The report noted that content publishing platforms have made it easier than ever to create and publish content at scale, but these same platforms frequently lack strong measurement and analytics tools: “the feedback loop on content performance just isn’t there”.

More encouragingly, the report also found that programmatic ad buying is delivering 2x better ROI than media bought in traditional ways and that those brands investing in rapid measurement and spend optimization had experienced a 12.7% lift in MROI and a 1% higher profit.

Source: Beckon
To read the full article, click here.

It’s tough to make high-quality native content

Many marketers are hopeful that native content creation will seamlessly integrate their messaging with what consumers are already reading and watching on social channels. But, according to NewsWhip, there are growing pains.

  • More than a third (37%) of media professionals worldwide feel that quality of content is the biggest barrier to their native success.
  • 27% of respondents pointed to not having enough resources.
  • 23% noted the inadequate return on investment (ROI) of native content.
  • 13% cited balancing quality and cost.

Biggest Challenge to Native Content Success According to Media Professionals Worldwide, Aug 2016 (% of respondents)

These frustrations are just one aspect of what native content is a symptom of: media professionals losing control of their content distribution. Newspapers and magazines may hope that tools like Facebook’s Instant Articles can provide them with readers and engagement—and perhaps even a new revenue stream—but it’s the social platforms that are in control.

Source: NewsWhip
To read the full article, click here.

Investment interest in virtual and augmented reality remains strong

Several key developments in virtual reality (VR) and augmented reality (AR) highlight new trends and considerations for brands, agencies and publishers looking to create and deliver immersive experiences, as explored in a new eMarketer report. The report, titled “Immersive Media Update Fall 2016: Key Virtual and Augmented Reality Trends” states that:

  • Since early 2014, more than $2.5 billion has been invested in VR and AR companies across more than 200 deals.
  • Q1 2016 had the biggest funding round yet, exceeding $1 billion.
  • The Huffington Post announced its acquisition of VR video production house Ryot in April 2016 and plans to incorporate the studio’s capabilities into the site’s news desks around the world.
  • Deutsche Bank projects that there will be 22.5 million VR users worldwide by the end of 2016, up from nearly 6.5 million cited last September.
  • By 2020, the firm expects more than 154 million people will use VR at least once per year, 135 million of which will be mobile VR users.

Source: eMarketer
To read the full article, click here.

What video ad length is best on Facebook?

It might be easy to assume that the shorter the video ad, the better the completion rate, but things change when it’s on a social platform. According to research by Kinetic Social, video ads that were between 30 and 60 seconds long fared better than those of less than 30 seconds on Facebook. The research also found that:

  • Almost half (44%) of 30- to 60-second video ads on Facebook were viewed to completion.
  • Meanwhile, those that ran 30 seconds or less saw a 26% completion rate.
  • Interestingly, two-minute or longer video ads had the second-best completion rate of 31%.

Image result for facebook ad video

In a separate survey from Animoto, within the next 12 months, 70.8% of respondents said they plan to invest in social video ads overall, including ads to boost content. And Facebook is most likely to benefit from this intent, with 65.8% of those who planned to do social video advertising planning to use it

Sources: Kinetic Social, Animoto
To read the full article, click here.

CMOs invest in analytics to better assess social media’s impact

As marketers shift dollars away from linear TV and toward digital video advertising, live stream video—thanks to Facebook Live and YouTube Live—has entered the fold. An August 2016 report from Trusted Media Brands (TMB) found that:

  • Almost one-fifth of US media decision-makers are planning to invest in live stream video ads in the next six months.
  • 17% of agency and 19% of in-house marketers definitely plan on allocating budget to live stream video ads in H2 2016.
  • The majority of respondents, however, are less committed; 60% of in-house and 71% of agency marketers said they “might” invest in the format.

Overall, digital video advertising spending will continue to grow, particularly on social, a channel that has close ties with live streaming. In a separate December 2015 study from Advertiser PerceptionsFacebook ranked No. 2 behind Google and YouTube in a list of media properties that marketers said they have pegged to use for their digital video advertising efforts.

Sources: Trusted Media Brands, Advertiser Perceptions
To read the full article, click here.

Commissioned by The CMA



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