In 2018, Mobile Video Spend Will Dominate Programmatic Media Buys

In 2017, programmatic digital display ad spending reached $32.56 billion and is projected to continue to grow rapidly throughout 2018 and hit $45 billion in spend by 2019. With this rise in programmatic ad spend, there also comes a shift in where advertisers are buying ad space. Another shift in programmatic ad buying is the rapid rise in mobile placements over desktop. The move to mobile is not surprising considering that on average, people in the United States are spending over 5 hours a day on their mobile devices. Media Buyers are set to capitalize on this shift, in 2018, programmatic investment on mobile will reach $30 billion, over 3x the amount spent on desktop. This is in large part due to the popularity of mobile video consumption and mobile-friendly sites such as YouTube, Facebook and Snapchat.

In 2018, Programmatic investment on mobile will reach $30 billion, over 3x the amount spent on desktop -eMarketer

This year, it is projected that mobile video ad spending will surpass non-mobile ad spend. This is due to the rise in popularity of consumers watching video online. It is projected that this year people will spend on average 36 minutes watching video on their phone or tablet compared to 18.5 minutes on non-mobile devices. Around the world, people will watch 25% more video on phone and tablets whereas computer and laptop video consumption is expected to decline. Smart TV streaming continues to rise, but not quickly enough to make up for the mass decline in non-mobile platform viewing. Mobile video ad spending alone is expected to reach $18 billion, a 49% growth. With more consumers watching videos on their phone, media plans are also being adjusted to include larger budgets for mobile video ads and creative.

Mobile Video Ad Boom Driven by Social Platforms

The move towards mobile video consumption is largely due to mobile-friendly apps like Facebook, YouTube and Snapchat. Over 500 million hours of YouTube video are watched everyday. 65% of people who watch the first three seconds of a Facebook video will watch for at least 10 seconds, and 45% will watch for 30 seconds (Facebook, 2016).  These stats clearly explain why Google as well as Facebook have the largest share in mobile advertising. Advertising agencies put aside a portion of their media budget for Facebook ads and although these agencies don’t necessarily plan to use this money for mobile, it is where the audience is going, as most of Facebook’s audience is through mobile. Views for branded video content on Facebook has increased 258% in 2017 making it a great media buy for advertisers. With 10 million videos watched on Snapchat everyday, the company is estimated to experience the fastest mobile ad revenue growth between 2016-2019. As more companies make their websites mobile friendly, the shift to mobile advertising will continue to grow, leaving desktop ads behind.  

By 2019, $45.72 billion will flow via biddable media, more than four out of five US digital display ad dollars. Mobile ad spending will be credited for more than $30 billion of this amount. The era of mobile programmatic advertising is just beginning as advertisers and brands spend more time and budget optimizing their campaigns for mobile.

Read about the other nine trends that we are predicting will be the key to success for programmatic buying teams in 2018 here.

If you haven’t already, there is no time like 2018 to get on the programmatic bandwagon.  If you need to get started Digilant University has all the information you need to get up to speed on native advertising and more than 30 other topics.  Need more information, you can also reach out to us here.

2017 Holiday Shopping Insights & Stats for Marketers and Media Buyers – Infographic

The results are in from America’s biggest shopping weekend of the year and the numbers are bigger than ever!  According to Adobe, who predicted that Americans would spend $5 Billion this year on Black Friday, they actually surpassed that number in online retail sales reaching $5.03 Billion – up 16,9% over last year.  This comes after the record $2.87 billion in online sales on Thanksgiving.  Adobe analyses 80 percent of online transactions for the 100 largest web retailers in the country to come up with these stats.

Mobile Traffic Dominates Black Friday

This year, according to Salesforce 60% of traffic to retail sites came from a mobile phone device. This tells us that consumers are not just browsing on phones, as 42% of Black Friday orders were placed from a mobile phone. 2017 represents a huge shift to mobile and the first Black Friday where computers accounted for less than half – 49% – of all orders.

According to Adobe’s Revenue tracking index, on Black Friday, 54.3% of retail website visits and 36.9% of revenue came from mobile, with conversion rates for tablets up 13% year over year, and smartphones up 16.5% year over year.
With consistent mobile retail traffic and revenue since the beginning of the month, it’s time for all marketers to consider running mobile only programmatic campaigns. Because consumers have access to reviews, ratings, and suggestions at the tap of a button,mobile-driven micro-moments are grabbing the huge majority of consumer attention.  It’s important to get in front of that consumer at the right time with the right ad, on their device of choice, and create a fluid and intuitive buying experiences – all the way from the awareness stage to the point of purchase.

Mobile is also transforming the in-store experience for customers. In-store shoppers search for information online while in-store. For the most part, they’re using search engines but consumers also head to the retailer’s own site or app. This presents a powerful opportunity for retailers to connect with shoppers, whether by sending them a special coupon or thanking them for coming into the store —mostly using the opportunity to  prevent them from turning to the competition.

 

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