Stats, Facts & Future Trends: April 2017

Stats, Facts & Future Trends April 27th, 2017

This month, we explore the rise and rise of digital video, why UK consumers trust brands more than their friends, and the problems B2B marketers have with social.

Digital video remains on the rise

Digital video usage is becoming a significant part of UK adults’ media consumption. According to eMarketer’s first digital video viewing forecast, adults in the UK will spend an average of 53 minutes per day watching digital video this year – more than double what it was five years ago. The forecast also predicted that:

  • By 2019, 10% of daily media time and almost 20% of daily time spent with digital activities will be devoted to watching digital video.
  • This year, UK adults will spend 27 minutes per day watching digital video through a mobile device, up from just under 6 minutes in 2012.
  • This year, mobile’s share of UK ad spending will rise to nearly 40%. By 2019, more than half of advertising investment will go to mobile.
  • Overall, adults in the UK will spend an average of 9 hours, 25 minutes per day with major media in 2017.

“UK adults’ love affair with the small screen has translated into the digital realm,” said eMarketer’s senior analyst Bill Fisher. “Whether they’re consuming digital video content via their smartphones, laptops or smart TVs, the average time spent with video content continues to rise. Small declines in time spent with traditional broadcast TV are being more than offset by growth in TV-like content on other platforms.”

Source: eMarketer

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Young millennials are all about Snapchat

While social networks are undoubtedly a large part of young people’s lives, Snapchat is the largest, with most using it on a daily basis. The research from advertising and PR agency SCG, who surveyed over 300 high school and college students, found that:

  • 78% of respondents said they use Snapchat on a daily basis.
  • This is higher than those that said they use Instagram (76%) or Facebook (66%) daily.
  • Of those who use Snapchat daily, seven in 10 said they use it more than six times per day, while over half said they use it more than 11 times a day.
  • Millennials make up the largest share of Snapchat’s US user base, with the estimated millennial monthly active users currently totalling 43.9 million.

Image result for millennials snapchat

It’s predicted that millennials will remain in the majority going forward, but their share of the total Snapchat audience will shrink each year as the app’s appeal increases among other generations. Overall, usage is being overshadowed by Instagram and its success with Stories. Nevertheless, eMarketer predicts millennials will still account for 56% of all US Snapchat users by the end of 2020.

Sources: eMarketer, SCG, Fluent

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UK consumers trust content from brands

Social media networks are under the spotlight as never before regarding content and trust, so marketers should note new research from Outbrain that suggests consumers place considerable trust in content from familiar brands. The research found that:

  • 77% of the UK consumers surveyed consider familiar brands to be a reliable source of information, whilejust 67% trust content shared by their own friends on social media.
  • Three-in-five regard useful and relevant content from even unfamiliar brands to be trustworthy.
  • Consumers generally trust traditional publishers more than social media or blogs, with two-thirds agreeing that content from newsbrands such as The Guardian or The Sun is reliable.
  • Out of the seven verticals included in the survey, traditional publishers are the most trusted environment in four of them, including travel and financial advice.

“Marketers need to bear in mind the need for innovation and creativity,” said Stephanie Himoff, Northern Europe Managing Director at Outbrain. “Given that consumers spend much less time reading service and product reviews than other types of content, marketers would be wise to use engaging content in the environment consumers trust most: publishers’ sites.”

Source: Outbrain

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B2B marketers admit social failings

More than half (58%) of B2B marketers don’t rate their ability to measure social media at all, according to a new survey of 150 senior marketers in the UK. The survey, conducted by social media consultancy Immediate Future, also found that:

  • Only a third (33%) of B2B marketers are tracking sales on social media – even those who see an uplift in sales.
  • 13% say social media measurement is neither important or unimportant.
  • While 61% of B2B companies are actively generating leads in social media, almost 90% are not able to set targets.
  • However, two-thirds (67%) are confident that their ability to measure social will improve in the next two years.

“The report reveals a widening gap between the marketers that have mastered social measurement and are impacting the bottom line, and those B2B brands that are struggling with some of the basic metrics,” said Katy Howell, CEO at Immediate Future. “Dig deeper into the report and you’ll see the underlying issue is a lack of investment in skills, resource and technology. For many marketers, time is the biggest challenge, followed by lack of tools and poor technology integration.”

Sources: The Drum, Immediate Future

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UK digital ad spend grows fastest since 2007

Boosted by surging mobile ad investment, UK digital advertising grew at its fastest rate in nine years in 2016, according to the Internet Advertising Bureau UK (IAB UK) and PricewaterhouseCoopers (PwC). The report found that:

  • Digital ad spending rose 17.3% for the year on a like-for-like basis – the highest rate since a 38% gain recorded in 2007 – to £10.3bn ($15.7bn).
  • Paid search spending, the largest segment of digital ad spending, with a 48% share, rose 15% to £4.99bn ($7.63bn).
  • Display ad spending rose 26% to £3.77bn ($5.76bn).
  • 38% of total digital ad spending was devoted to mobile efforts, compared with 29% in 2015.

“The rise in people consuming mobile and video content has accelerated digital’s growth rate to its highest level for nearly a decade,” said James Chandler, IAB UK’s chief marketing officer. “Reaching the £10 billion threshold has been made possible by brands breaking the mould, trying innovative formats and making the most of video to reach and amaze people.”

Sources: IAB UK, PwC

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Consumers like tech but want control

Image result for vr brand content

A new report has revealed that while consumers are open to new technologies, such as AI and the Internet of Things, brands operating in this field must tread carefully or risk a backlash. The report, produced by Oracle Retail, the retail and hospitality division of tech giant Oracle, found that:

  • 64% of consumers liked the option of using virtual reality to navigate a personalised in-store experience or to build a hand-picked wardrobe to try on in-store.
  • 67% liked the option of drones delivering to their doorstep, while 64% responded favourably to the concept of having a retailer suggest a custom-made accessory for them produced with 3D printing.
  • 58% were positive about retailers suggesting a grocery shopping list based on purchase history and social data.
  • However, 54% indicated that having a grocer automatically charge and ship items based on purchase history, social and environmental data was invasive.

“Consumers clearly indicated that they have a conservative appetite for retail technologies that requires deep personal data and make decisions on their behalf,” said Mike Webster, SVP and General Manager at Oracle Retail and Oracle Hospitality. “This signals brands to focus on building a strong foundation to win trust. Warm attitudes toward utilising virtual reality and receiving recommendations for custom-made accessories produced with 3D printing points to consumers’ willingness to adopt new technologies if they are in control of their experience.”

Source: Oracle Retail

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Facebook is the top social media platform for the over-50s

Social media may be seen as an activity for the young, but the over 50s are quickly catching up, spending over four hours a week on the platform. But while millennials prefer Snapchat and Instagram, a report by eMarketer has found that their parents and grandparents prefer Facebook. The report also found that:

  • 48% of US boomers will be social network users this year.
  • Facebook penetration among US boomers is at 90%, closely matching the figures for millennials and Gen Xers.
  • Social users aged 50 and older spend 63% of their social media time on their smartphones.
  • Nearly half of millennials said they worry about negative effects of social usage on their physical and emotional health, versus barely one-fifth of boomers.

Boomers are not joining Facebook and then ignoring it. In Cowen and Company research from August 2016, 62% of Facebookers ages 55 to 64 said they use it daily, as did 54% of those 65 and over.

Sources: eMarketer, Nielsen, Cowen and Company, APA

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Commissioned by The CMA

  Share: Posted in CMA Industry News, Stats, Facts & Future Trends