Stats, Facts & Future Trends: July 2017

Stats, Facts & Future Trends August 2nd, 2017

This month, we reveal the future of mobile video viewing, what brands should and shouldn’t do on social media, and why cause-related ads are on the rise.

5.5bn people will use mobile devices by 2022

Two-thirds (66%) of the world’s population, or more than 5.5bn people, are expected to be using mobile devices by 2022, according to a new global forecast. Based on a survey of more than 9,000 consumers, Forrester found that:

  • The number of global smartphone subscribers is expected to reach 3.8bnin five years’ time, crossing the 50% mark for smartphone penetration by population in 2017.
  • Globally, Android is expected to capture almost three-quarters (73%) of smartphone market share this year, amounting to 1.8bn users, followed by Apple (21%) and Windows (4%).
  • Large-screen smartphones are also contributing to a decline in tablet users, with the total tablet base expected to decline from 615m in 2016 to 579m in 2022.
  • While smartphones are still far and away the most popular mobile, more than 1bn subscribers are still expected to use feature phones in 2017.

“Nokia relaunched the iconic feature phone 3310 to address this market in February 2016, targeting emerging markets like India,” the report noted. “We expect that by 2020 around 433m subscribers will still be using feature phones as their primary phone.”

Source: Forrester

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UK marketers lean towards short term

Uncertain economic times are driving marketers to shift their spending into activation and digital advertising according to the latest IPA Bellwether Report. The report for Q2 2017, based on data drawn from a panel of 300 UK marketing professionals, showed that UK marketers have revised up their internet budgets to the greatest extent since Q3 2007. Other findings of the report include:

  • The net balance of +22.7% was up sharply from the first quarter figure of +16.9%.
  • Within internet marketing, search/SEO (+15.6%) and mobile (+3.0%) both continued to record upward revisions to budgets.
  • The increase in internet budgets fuelled growth in overall marketing budgets, which registered a net balance of +13.1%.
  • Reductions in budgets occurred in market research (-6.2%) and direct marketing
    (-4.7%).

“The election result has thrown further uncertainty into an already volatile environment,” said Paul Bainsfair, Director General of the IPA. “For marketers, this has meant a desire, where possible, to seek out more activation-driven advertising. As evidenced strongly in this latest Bellwether Report, this has resulted in a further move towards advertising in the digital space.”

Source: IPA Bellwether Report

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Mobile devices lift online viewing by 20%

Online video viewing around the world is expected to increase by 20% in 2017 and this in turn will drive up global video adspend, according to a new report by Zenith. The ROI agency’s Online Video Forecasts 2017 study also stated that:

Image result for viewing online on mobile devices

  • Global consumers will spend an average of 47.4 minutes a day watching videos online this year, up from 39.6 minutes in 2016.
  • There is expected to be a 35% increase in viewing on mobile devices (smartphones and tablets) to 28.8 minutes a day.
  • Mobile video viewing is expected to grow 25% in 2018 and 29% in 2019.
  • Mobile devices will account for almost three-quarters (72%) of all online video viewing by 2019, up from 61% in 2017.
  • In the UK, online video adspend is forecast to rise to £1.7bn.

“Online video is one of the fastest-growing channels of advertising, triggering heavy demand from brands for high-quality content,” said Jonathan Barnard, Head of Forecasting and Director of Global Intelligence at Zenith. “Video platforms that can capture the attention of the most consumers with the best content will reap the highest rewards.”

Source: Zenith

For more information, click here.

What brands should and shouldn’t do on social media

Brands face a daily battle to stay relevant on social media and reach an increasingly demanding audience, so Sprout Social surveyed a number of US internet users in April 2017 to determine what they did and didn’t like. The social media analytics and monitoring service found that:

  • Nearly seven in 10 internet users were annoyed when brands used slang on social media.
  • More than four in 10 respondents (42%) said they found it annoying when brands used GIFs.
  • More than seven in 10 respondents found it annoying when brands got political on social media.
  • However, a large share (83%) of internet users found it cool when brands used video clips, while 83% also liked it when brands responded to their questions.
  • Two-thirds of respondents also thought it was cool when brands joined conversations on social media and talked about timely events.

Source: Sprout

For more information, click here.

Creative remains a challenge for mobile video

A new study from YouAppi, a growth marketing platform for mobile brands, finds that when it comes to delivering effective mobile video, marketers face a few challenges. Among them are developing creative, as well as finding properties to effectively run mobile videos. The study found that:

  • More than four in 10 (44%) of mobile marketers and agency professionals surveyed said that developing compelling creative was a hurdle they faced
  • Nearly three in 10 (28%) said they don’t have enough funds in their budget to do what they need to do.
  • One in five (21%) said they faced pressure to act too quickly before they had their strategy in order.
  • However, despite the challenges, mobile video ad spending in the US will grow by double-digit rates through 2021.

Similar to the YouAppi study, Teads found that amid the heightened interest in mobile video, marketers are still faced with challenges. Many respondents noted lack of premium inventory, consumers’ shortened attention span and ad fraud as some of the obstacles.

Sources: YouAppi, eMarketer, Teads

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Four family types determine household spending

There are four distinct types of family in the UK whose purchase decisions and spending habits are influenced more by attitude than traditional demographic or financial models, according to new research from YouGov and creative communications agency Krow. As well as concluding that attitudes towards parenting and household management have a more important role than income, age or other factors, the study found that:

  • The four family groups are described as “conscious nurturers” (32%), “control seekers” (28%), “practical planners” (25%) and “plate spinners” (14%).
  • Conscious nurturers, who are typically more affluent than the other family groups, believe it’s very important for children’s development to be included in any purchase decision-making.
  • Control seekers plan their spending in advance and believe that parents have a responsibility to make decisions on behalf of the whole household.
  • Practical planners are more likely to keep to a strict budget compared to the other family groups, although they are open to different members of the household contributing to purchase decisions depending on their area of expertise.
  • Finally, plate spinners are those families who are just about managing to pay their bills and, consequently, are less likely to experiment or stray from their regular purchase choices.

“We thought money was going to be at the heart of people’s decision-making, but what actually came out was more their attitude towards how they want to run their lives, bring up their children and the relationships they want to have,” said Aileen Ross, Senior Planner at Krow.

Sources: YouGov, Krow

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Cause-related ads increase four-fold

Purpose-driven ads are not only growing in number, but they generate more views and drive more results in the form of engagement rates, research shows. Drawing on YouTube data, video ad tech company Pixability found that:

  • Cause-related ads among the Interbrand 2016 list of top 100 global brands had increased fourfold over the past five years.
  • Some issues were more prominent than others, notably women’s empowerment, which accounted for 24% of purpose-driven videos.
  • Other topics being addressed included community aid (17%), adversity (16%), sustainability (14%) and equality (10%).
  • The average number of views for such purpose-driven videos was almost 1m more than for non-purpose ones.

“When purpose-driven ads are done well, brands have the opportunity to not only stand for something they believe in, but also deeply connect with an audience,” said Bettina Hein, CEO of Pixability. “I believe this will become an increasingly important method to build brands at a time when people are increasingly choosing brands that align with their values.”

Source: Pixability

For more information, click here.

Commissioned by The CMA

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