Frontline Marketing

80 Percent Of Consumers Support Futuristic Payment Types; Digital Ads Outpace TV

internet browser with thumbs up

By | July 28, 2017 |

This week in marketing statistics, Google makes customers happy, CEOs speak up and consumers are ready to pay with their faces.

Online Ads Put TV On The Line

Video ad spending on social media comprises almost 30 percent of total social media spending, and expanded text ads get almost 60 percent of search keyword ad impressions, according to Kenshoo. The company’s “Digital Marketing Snapshot: Q2 2017” report found that mobile ad spending was up 51 percent on social media and 45 percent for search ads.

The online advertising market outpaced TV in 2016 by roughly $15 billion, according to the Price Waterhouse (PwC) annual “Entertainment & Media Outlook” report. With a compound annual growth rate of 9.9 percent from 2016 through 2021, online advertising will be a $116 billion market by end of the forecast period. PwC says that would make online advertising more than 50 percent larger than the TV advertising market by 2021.

In the second quarter of 2017, national TV advertising revenue was down 0.8 percent, Standard Media Index reports. The US advertising market grew 3.8 percent, largely due to an 11 percent gain in digital media.

‘Searching’ For Happiness

Fifty-five percent of consumers said Google’s brand inspired happiness, followed by Facebook at 50 percent, according to System 1 Research. Apple was named by 40 percent of respondents as a brand that makes them happy, compared to Twitter (32 percent), Instagram (30 percent) and Snapchat (25 percent).

Nintendo (And Mobile) Power

The Nintendo Switch sold 1.97 million Switch consoles in its second quarter, the company announced. That brings the total sales of the device to 4.7 million units, attributing to revenue growth of 149 percent over the same quarter last year.

On the other side, mobile gaming revenue grew to $12.2 billion in the second quarter—32 percent over the second quarter of 2016—according to Sensor Tower.

Game revenues on iOS grew slightly more than Google Play (34 percent versus 28 percent, respectively). Together, there were 9.2 billion mobile game downloads across iOS and Google Play—up 19 percent from 7.7 billion a year earlier.

Mobile games accounted for about 77 percent of all global revenue on Apple’s App Store for the quarter and approximately 88 percent of spending on Google Play. Spending on mobile games on Google Play grew to $4.5 billion, up 28 percent from $3.5 billion in the year-ago quarter.

Where We’re Going, We Don’t Need Wallets

You put the finishing touches on a report from the back seat of your self-driving car when it pulls up to your favorite drive-through coffee shop. A quick facial scan later, your “usual” is prepared and paid for. Traffic is heavy today, so you’ll have just enough time to watch that new action movie from the comfort of your ride.

That’s not a Philip K. Dick novel—it’s the foreseeable future, according to analysts, and consumers are all for it. In fact, 80 percent of US consumers support “futuristic” payment types and currencies such as facial recognition, retinal scanning and voice control, per a study by Viewpost. A survey of 1,000 US consumers found that 50 percent believe fingerprint technology will be utilized for authentication to pay and receive payments over the next 10 years.

Eighteen percent of respondents can see themselves using voice control to make payments by 2027, and 83 percent said paper checks will be completely eliminated within the next 20 years.

“Autonomous vehicles will reshape the global economy,” Forrester teased in its upcoming report of the same name. The firm spoke with representatives within the auto manufacturer, insurance, delivery, security industries and more to research the downstream impact of such technology becoming a reality. Forrester predicts that by 2035, the global economy will be unrecognizably different.

“As luxury car brands shift their messaging from high-performance engines to Ultra HD entertainment systems, advertisers and media companies will compete for a spot in the new vehicle experience,” Forrester said. “Big brands will sponsor rides and destination companies like Disney will seize the opportunity and extend their guest experience to the commute en route to the park.”

Loud And Proud? Or Safe And Silent?

Should CEOs speak out, or remain neutral on hot-button social topics? The answer depends on which generation you talk to, according to a report by Weber Shandwick and KRC Research.

While 47 percent of millennials (ages 18-to-36) believe CEOs have a responsibility to speak up about issues that are important to society, half of that number (28 percent) of Gen X (age 37-to-52) and baby boomers (age 53-to-71) agree. Fifty-six percent of millennial respondents say CEOs have a greater responsibility to take a stance on hot button issues than they used to.