Stats, Facts and Future Trends: October 2017

Stats, Facts & Future Trends November 6th, 2017

This month, we look at mobile’s global dominance for internet access, the value of Snapchat’s older users for brands, and how online spend for video has overtaken banner ads.

Mobile expands its global share of internet use

Zenith has released its latest Mobile Advertising Forecasts report, which has found that the use of mobile for accessing the internet is increasing globally. Based on research the media agency conducted across 52 countries, the report found that:

  • Mobile devices are forecast to account for around three-quarters (73%) of the time global consumers spend using the internet in 2018.
  • The amount of time spent on mobile devices has doubled since 2011, when mobile accounted for 36% of all internet usage.
  • The UK is lagging behind with mobile currently accounting for 57% of average daily internet consumption – 13% behind the global average.
  • However, UK consumers are very heavy users of mobile e-commerce and the proportion of internet adspend going to mobile is estimated to be 63%, compared to 53% globally.

Meanwhile, tablet ownership varies widely across the 52 countries, ranging from a mere 4.8% in China, where the device has hardly caught on at all, to 74% in the Netherlands. In the UK, smartphone and tablet penetration in 2018 is expected to reach 69% and 60% respectively.

Source: Zenith

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Snapchat’s older users more open to brands than teens

Brands using Snapchat to reach teenagers could be misguided according to new research by UM. The global media agency interviewed 2,500 UK consumers aged 16 and above as part of its Momentous Book of Moments, an in-depth study of the UK’s online and social media habits, and found that:

  • Only 14% of users aged 16-24 use Snapchat to find new products and brands.
  • That figure rises to one in five (21%) among users aged 25-34.
  • 40% of those aged 16-24 (and 43% of teenagers) admit they like using Snapchat because their parents aren’t on it.
  • 60% of users open Snapchat at least once a day.

Image result for snapchat

“Although teenagers may be enthusiastic users of Snapchat because their parents are nowhere to be seen, they’re not as open to finding new brands and products to try that way,” said George McMahon, Insight Executive at UM. “That might be youthful cynicism, but it may also signal a change in how brands use the network. Snapchat has said it’s looking to improve its offering and create efficiencies for advertisers. If it’s more receptive audiences are actually twenty- and thirtysomethings, advertisers using it to target teens may have to reappraise their content strategies.”

Source: UM

For more information, click here

B2B marketers build audiences with content marketing

B2B content marketers are focused on building audiences and the majority believe their overall approach is becoming more successful, according to new research from the Content Marketing Institute and MarketingProfs. The B2B Content Marketing 2018: Benchmarks, Budgets and Trends—North America study was based on responses from 870 North American B2B marketers, and found that:

  • 80% of respondents agreed that their organisation is focused on building audiences – an 18% year-on-year increase.
  • 63% of B2B marketers said their organisation’s overall content marketing approach was ‘much more’ or ‘somewhat more’ successful than a year ago.
  • This is due to valuing creativity and craft in content creation and production (74% of respondents) and more organizations having processes in place (37%).

“Where we really see a difference is in organizations that also do well with project management,” explained Ann Handley, Chief Content Officer, MarketingProfs. “For example, 70% of the top-performing content marketers rate the project management flow during their content-creation process as excellent/very good, compared with 36% of the total sample. This tells us that not only does it pay to be creative, if you truly want an edge, you also have to have good processes in place.”

Sources: Content Marketing Institute, MarketingProfs

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Direct mail is back in the mix

A new study by Royal Mail MarketReach and TNS has found that direct mail is gaining in popularity thanks to consumers considering it to be believable while digital channels face ‘trust fatigue’. Following the same model set by studies carried out in 2007 and 2013, the research included several questions addressing emotional engagement, and found that:

  • 87% of consumers consider mail communications to be ‘believable’, while only 48% feel the same way about email.
  • Between 2007 and 2017, the percentage of people stating that mail makes them ‘feel valued’ has increased to 70%, compared to only 43% in 2007.
  • 70% also responded that mail also ‘gives them a better impression of the company’, rising from 53% in 2007.
  • A BrandScience review of multi-channel campaigns concluded that when mail was included in the marketing mix, campaigns had 12% bigger ROI than those without mail.

“The findings confirm that, in a digital world, where a vast and growing volume of emails are sent every day, the comparative rarity of real-world ‘physical’ mail has led to it becoming increasingly valued and trusted by consumers,” said Michael Feeley in an article for The Drum magazine. “Better yet for marketers, the media can positively impact on the perceived trustworthiness of the communication itself and help to create a more rounded, more believable brand identity.”

Sources: Royal Mail MarketReach, TNS, BrandScience

For a copy of the full report, click here

Many reach for another device during commercial breaks

Nearly half of internet users say they use a smartphone while watching TV, according to a new study from Adobe Digital Insights (ADI). The study surveyed 1,000 internet users and found that many were more likely to reach for another device when a commercial break came on as opposed to doing so while watching a TV programme. Other findings include:

Image result for on phone while watching tv

  • When a commercial came on during a TV talk show, nearly half of respondents said they reached for another device.
  • While watching the actual show, only 38% said they use another device.
  • The figures are slightly lower for sports programmes, with 36% using another device during the show and 45% using one in the break.
  • However, for movies, only 25% use a device while watching the film and 35% using one in the break.

The study echoes previous reports about consumers’ multitasking habits while watching TV. A March 2017 survey from Tremor Video and Hulu, which looked at the various activities US connected TV users perform while watching TV, found that across the age spectrum, most tend to go on social media. When it came to other activities, such as texting or gaming, younger respondents (ages 14-21) were more likely to participate than their older counterparts.

Sources: ADI, Tremor Video, Hulu

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Engagement with email still tops social

A few years ago social media was supposed to kill email, yet email continues to go strong, and according to new data, it’s tracking high on the engagement level across demographics. A new report from marketing company SendGrid has found that:

  • 74% of consumers prefer branded email communications to any other type of communication.
  • Gen Z are expected to increase their use of email by 83% in the next few years, making them the demographic that’s using email the most.
  • 89% of those surveyed used email at least once in the month before the study.
    • 83% had used a social media tool/platform.

“Across generations, there is an overwhelming preference for email usage over all other communication forms by consumers when it comes to interactions with businesses,” said the report. “Email is primarily a vehicle for professional or work exchanges, particularly for sharing documents, scheduling meetings and communicating about work.”

Source: SendGrid

For more information, click here.

Online video spend overtakes banner ads

In the first half of 2017, advertisers spent more on video ads than banner ads for the first time, according to new data from the Internet Advertising Bureau UK (IAB). The latest Internet Advertising Bureau UK/PwC Digital Adspend report shows that:

  • Total digital advertising expenditure grew 13.8% to £5.56bn in the first six months of 2017.
  • However, spending on online video ads grew three times as fast, at 46%, to reach £699m, while spending on banner ads slowed to just 2%, taking it to £685m.
  • Video is the fastest-growing ad format and now accounts for 35% of all spend going on display advertising.
  • Specifically, the time people spend watching short video clips has almost trebled over the last three years.

“The time people spend watching online video has grown tremendously over the last few years,” noted Jon Mews, IAB CEO, “so it’s little wonder that video is now the fastest-growing ad format as advertisers look to tap into the changing way people consume content.”

Source: IAB, PwC, YouGov

For more information, click here.

Commissioned by The CMA





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