Stats, Facts & Future Trends: January 2018

Stats, Facts & Future Trends February 6th, 2018

This month, we discover that the UK has become more pessimistic and suspicious, why content should be a long-term strategy for brands, and how mobile is now the world’s second-largest advertising medium.

Britons are pessimistic and suspicious

The latest Edelman Trust Barometer paints a picture of the UK as a pessimistic and suspicious country, where few people consider themselves properly informed and many of the rest reject the news as too depressing. The Barometer measures trust across institutions and geographies, surveying more than 33,000 respondents across 28 countries, and this year found that:

  • A significant proportion of respondents were consuming less news (33%) and a further fifth (19%) avoided the news altogether
  • There was a 13 percentage point lift in trust for traditional media, reversing a five-year decline to reach 61%.
  • Trust in social media, meanwhile, dropped two points to just 24%.
  • The proportion of respondents in the UK considering themselves part of the ‘informed public’ – those who consume business or political news several times a week – has reached an all-time low of just 6%.

Underlying these shifts is Brexit, with the Barometer showing a 43:39 split between those opposed to it and those in favour, and charting a steady rise since 2016 in the level of pessimism about living standards and economic prospects. Edelman suggested that there lies an opportunity with business to fill the trust gap where others are falling short, particularly if there is a focus on reputational drags such as executive pay and tax.

Source: Edelman

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Ads integrated but consumers unmoved

Around the world the majority of multimedia ad campaigns are integrated well according to new research, which also found that, despite most consumers finding them unmemorable, such campaigns are more effective at building brands. Kantar Millward Brown’s 2018 AdReaction study, The Art of Integration, found that:

  • Three quarters of multimedia ad campaigns were integrated well, with all content working coherently across the different channels it is viewed on.
  • Combinations that work particularly well with each other are TV and Facebook, and TV and outdoor.
  • Multimedia pre-testing of campaigns showed that integrated campaigns are 31% more effective at building brands.
  • Campaigns that are both integrated and customised are 57% more effective at building brands.
  • While most marketers (89%) viewed their efforts as being integrated, only 52% of consumers agreed.

Jane Ostler, Managing Director, Media & Digital at Kantar Millward Brown, compared the marketer’s role to that of an orchestra conductor, saying: “Marketers need to work even harder now to ensure that everything works in harmony. Start with a strong campaign idea, use consistent brand cues and deliver a tightly integrated execution.”

Source: Kantar Millward Brown

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Content needs to look to the long term and data

Content should be a long-term play for brands, who ought also to be considering how they can best utilise data to make their campaigns more effective, according to a new WARC report. The Content Strategy Report analysed the shortlisted entries to the 2017 WARC Awards to identify four trends that marketers can tap into in the year ahead to improve the effectiveness of their content marketing, and found that:

  • 89% of long-term campaigns (a duration of six months or more) achieved ‘considerable’ effectiveness, compared with 58% of short-term campaigns.
  • The report suggests that content marketers need to shed their apparent ‘dataphobia’ and start using tools like Google Trends and social listening.
  • A third area of the report highlights how marketers use PR, which has become an increasingly useful tool in reaching a millennial audience.

“If I were a betting person, I’d be placing my money on the long term, as often as I could,” observed Carl Ratcliff, CEO of One Green Bean and a member of the judging panel. “Long term pays dividends.”

Source: WARC

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Social media hits major milestones in 2018

With Facebook and Twitter at the centre of national conversations about political ad transparency and fake news, it seems the year ahead will be anything but dull for social media companies. eMarketer’s latest report, ‘US Social Trends for 2018: eMarketer’s Predictions for the Year’ looks at key forecasts for the year ahead and examines their 2017 predictions. The report finds that:

  • In 2018, Facebook will account for 23% of all US digital ad spending, taking in $1 of every $10 spent on all advertising – digital and non-digital.
  • Twitter and Snapchat will reach parity in US ad revenues in 2018. Snapchat is expected to pull in $1.18bn in US ad revenues this year against $1.16bn for Twitter.
  • Although Snapchat’s user base is growing more slowly than expected, it will see ad revenue growth this year, thanks to improved measurement capabilities and a growing embrace of ad targeting tools.
  • Twitter, however, is not growing and its ad revenues are expected to drop by 4.5% in 2018.

To put Facebook’s US ad revenues (forecast to reach $21.57bn this year) into context, they will be twice the amount spent on newspaper advertising ($10.74bn) and nearly as much as advertisers will spend on the entire print category ($23.12bn). In 2019 Facebook will zoom ahead, accounting for 11.3% of all US ad spending, compared with 10% for print.

Source: eMarketer

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Mobile usage cuts into real socialising

Increased usage of mobile devices over recent years appears to have had a direct impact on the amount of time people go out to socialise with friends and family, official analysis suggests. The Office for National Statistics compared device usage in 2015 with data from 2000, and found that:

  • The amount of time spent on face-to-face socialising in the UK has dropped by 12.7% to around six hours per week.
  • Of all leisure time spent using a device in 2015, 46% of this time was spent alone, compared with 29% without a device.
  • Compared to 2000, British consumers in 2015 spent less of their leisure time on activities such as sports and cultural pursuits.
  • Young Britons (aged 25 and under) spent about a third of their leisure time looking at their mobile phones, tablets and other devices in 2015.

“People may be using mobile phones to socialise when they’re watching television, but it’s not necessarily face-to-face communication,” the ONS said. “It’s possible that with increased device use, people are becoming less likely to go out of their way to meet up and socialise. Easy internet access enables people to talk to friends via social media apps, but they’re still doing so alone.”

Source: Office for National Statistics

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For social video, marketers value engagement

Video is rocketing on social media, and according to video editing application Magisto, savvier marketers are taking their social media cues from individuals, personifying their brands to create a notion of authenticity. Their recent report into video on social media found that:

  • US firms are investing a total of $135bn this year in their social video efforts.
  • The two most popular types of video are Customer testimonials and Product/service overview videos for distribution on social media, both used by 51% of the US marketing decision-makers surveyed.
  • How-to/educational videos and Event promotion/recap were close behind on 49% and 48% respectively.
  • Then there’s Storytelling videos (43%), Virtual tours (38%) and Individual professional profiles (32%).

Magisto’s survey underscores the sheer variety of content marketers are now creating for potential customers. That’s an understandable outcome, given that advertisers are moving away from metrics historically used in tandem with traditional media marketing – such as brand recall and cost per acquisition – to gauge the effectiveness of videos on social media.

Source: Magisto

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Mobile now the world’s second largest ad medium

WARC have released their latest Global Ad Trends report, which has found that mobile is now the second-largest ad medium by spend, having overtaken desktop internet for the first time in 2017. Based on data from WARC’s 12 key markets of Australia, Brazil, Canada, China, France, Germany, India, Italy, Japan, Russia, the UK and USA, the report found also that:

  • Mobile adspend across all formats is expected to reach $98.3bn in 2017, representing almost a quarter (23%) of worldwide advertising expenditure.
  • Mobile adspend will record 35.2% year-on-year dollar growth in 2017, with half (51%) of the total allocated to search, followed by display formats (45%) and then classified and other spend (4%).
  • Advertisers in the 12 markets studied are expected to spend $45.2bn on mobile display this year.
  • Mobile is expected to account for 88% ($34bn) of Facebook’s ad revenue in 2017, but its growth is forecast to ease to 40% in 2017 compared with 70% growth in 2016.

“Daily mobile time has more than doubled over the last five years – from 1hr 17mins in 2012 to 3hrs 2mins in 2017 – and our research demonstrates how marketers are looking to capitalise on this by investing more in social, video and native mobile formats over the coming years,” says WARC Data Editor James McDonald. “Much of this influx has been to the benefit of the duopoly, Facebook and Google, where one in four dollars of global advertising is now spent.”

Source: WARC

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How B2Bs split their marketing spend

A survey of business-to-business (B2B) marketers by Demand Gen Report (DGR) has discovered that owned media wins the highest share of marketing budgets. Based on a survey of 169 respondents from a variety of business sectors, the study also found that:

  • B2B marketers put 24% of their spending toward earned media and 25% toward paid media.
  • Meanwhile, owned media accounts for 32% of their spending.
  • 89% of those polled said they relied on earned tactics to drive brand awareness, making it the most commonly named goal.
  • Creating ‘share-worthy’ content was the highest priority tactic for improving earned media effectiveness, followed by optimising social channels and generating case studies/success stories.

Meanwhile, about two-thirds used the strategy to drive sales down the pipeline, while half wanted earned media to bump up their revenues. eMarketer predicts that US digital ad spending in the B2B sector will grow from $4.07bn this year to $4.6bn in 2018, a bump of 13%.

Sources: Demand Gen Report, eMarketer

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