How Digital Ad Spending Is Shifting

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We’ve talked in the past about the increase in mobile ad spending, since more and more consumers prefer to view video and other content through the convenience of their smaller devices. Now, a new report from BI Intelligence indicates that spending will continue to pick up on mobile devices with digital content, while desktop and traditional formats will see a slowing down.

Business Insider indicates that, over the next five years, marketers will warm up to mobile spending, spread across video, search, display and social, with more dollars seeping away from traditional media, including newspapers and magazines. The chart below indicates just how much is being spent on each field.

As you can see, mobile spending will differ between 8.1 and 21.9 percent across all fields, with a digital total spending of 11 percent overall. Meanwhile, traditional media will drop anywhere between 2.2 and negative 2.5 percent, with newspaper advertising taking the most critical hit.

Other facts provided by the report are as follows:

 

  • Mobile will be the fastest-growing advertising channel and buoy spending on each of the digital formats. US mobile ad revenue will rise by a 26.5 percent CAGR through of 2020.
  • Digital video ad spending is rising faster than search and display. US digital video ad revenue will rise by a CAGR of 21.9 percent through 2020.
  • Mobile search will overtake desktop search in ad revenue by 2019. Mobile search ad spend will rise by a 25.2 percent CAGR, while desktop search ad revenue will decline during the same period.
  • Mobile display ads, including banners, rich media and sponsorships, will overtake desktop display-related spending even earlier, by 2017.
  • Social media ads, which cut across display and video, are seeing fast adoption. US social media ad revenue, which includes video and display ads, will grow by a CAGR of 14.9 percent through 2020.
  • The rapid embrace of programmatic ad-buying tools is fueling a dramatic uptick in the share of digital ad spending coming through programmatic channels. Programmatic transactions will be a majority of total US digital ad spend this year.
  • Unlike digital, traditional ad revenue will remain flat overall through 2020.Total traditional ad revenue will rise by a CAGR of just 0.4 percent between 2015 and 2020. 

The full report can be found here.

Hulu Tries Programmatic Advertising

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Hulu has gone to great lengths to get good weekly programming going on its service, including upcoming shows like RocketJump: The Show, Casual and the newest season of The Mindy Project. Now, it’s ramping up its advertising strength as well, ready to give programmatic advertising a shot.

AdWeek reports that the streaming network has partnered with both Oracle Data Management Platform and Facebook-owned video ad platform LiveRail to begin offering programmatic advertising options. This is a first for the network, giving options that include automating the buying, placement and optimization of ads through its site. It’s expected to launch sometime this fall, alongside many of its debuting series.

“The marketplace has shown that data is overwhelmingly the new currency,” said Peter Naylor, senior vice president of advertising for Hulu. “With this new offering, Hulu is at the forefront of defining ‘programmatic’ for the digital video ecosystem and will increase efficiency and ROI for marketers.”

Both partners will play a vital part in the program, with Oracle providing first and third party data to help increase reach, scale and efficiency, while Facebook’s LiveRail will allow Hulu to offer complete deals with advertisers through programmatic means. The streaming network will still keep a certain stature of control over its sales structure, however.

It’s a pretty timely decision, considering that Hulu is launching several new series over the next few months, as well as considering an ad-free subscription plan. The company hasn’t made any official comments on that front just yet.

In addition, the strength of programmatic advertising is stronger than ever, with more companies embracing the idea of obtaining better data through targeting consumers via audience exchanges, according to this MediaPost report.

So this new plan can be very effective, provided that it’s embraced the right way and doesn’t get to the point of obtrusion when it comes to watching hit shows. We’ll see how it fares over the next few months.

Target, YouTube Feel The ‘Star Wars’ Marketing Force

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With Disney’s Star Wars: The Force Awakens set to hit theaters on December 18, millions of fans of the popular science fiction series can’t wait to see what’s next. In the past, we’ve talked about marketing partners on board for the film, including Subway and Duracell, but this week, it will go light speed with two new promotions.

First up, previously reported by Mashable, Target has just launched a new promotion in conjunction with Lucasfilm that will help Star Wars fans share their fandom while they wait for new products to be revealed. Titled “Share the Force,” the program enables them to share memories of their beloved sci-fi franchise, which are then stored in large 3D virtual environments “galaxies”, if you will based on characters from the films, including Darth Vader and Boba Fett. Other fans will then be able to explore them however they please. The video below shows just how these interactive universes will work.

 

Stars are getting involved as well, including Nerdist’s Chris Hardwick, who shared a photo he got with creator George Lucas in 2012, and Saturday Night Live star Bobby Moynihan, playing with Star Wars figurines.

“We’re excited to not only be creating the first collection of fan memories, but also to be giving (fans) the once-in-a-lifetime opportunity for their memories to become a permanent part of the Star Wars legacy,” said Rick Gomez, senior vice president of marketing for Target.

There’s no doubt that this campaign will play a big part in Star Wars mania in the weeks ahead, and that Target will be one of many retailers benefitting from the new toys and other Force Awakens-licensed goods coming to shelves. This Friday, YouTube will be hosting a global live toy unboxing event that will span over 18 hours, showing fans the range of merchandise that will be available this holiday season. Digital stars from the Maker Studios will be on hand for the reveal.

“Star Wars toys have always played an important role in how our fans interact with the saga,” said Lucasfilm president Kathleen Kennedy. “They’ve inspired multiple generations to relive the experience of the movies and to create new adventures all their own. These spectacular Star Wars: The Force Awakens products will continue that tradition.”

Click here to learn more about the global reveal event on the official Star Wars page. It’s going to be a busy day.

Star Wars: The Force Awakens debuts in theaters December 18th.