This week, TV sets get lonely, Nintendo gets hopeful and consumers want options for loyalty-based communication.
TV Ads And Assumptions
Do advertisers project their own lifestyles and media consumption onto consumers? Apparently so, the Video Advertising Bureau found. The company’s report—Do We Have Consensus—found that advertisers believe 32 percent of viewers watch content on live or recorded TV, while Nielsen’s figures for viewers 18-years-old and over show that 82 percent are engaged in TV viewing. Likewise, advertisers who participated in the study believed that adults spend two hours or less viewing TV daily when the actual figure is four hours and 35 minutes.
When consumers do watch TV, they prefer to do so on a computer, according to an Accenture survey of 26,000 internet users around the world. The percentage of consumers who prefer watching TV shows on television sets plummeted by 55 percent over the past year, from 52 percent to 23 percent. Thirteen percent said they prefer watching TV shows on their smartphones, compared with 10 percent last year.
When it comes to pre-roll ads, viewers pay attention to a higher proportion of ads on connected TV (CTV) and CTV ads deliver higher brand metrics. A new report by YuMe studied ad effectiveness by comparing the actual time a viewer’s eyes were tracked watching an ad against the total time the ad was viewable for CTV, desktop and mobile campaigns. Tracking showed 89 percent of a CTV pre-roll ad is viewed, compared to 81 percent on mobile and 78 percent on desktop.
The State Of Ad Spend
Advertisers spent a record-breaking $72.5 billion last year and 51 percent of that was on mobile, according to IAB. Mobile experienced a 77 percent increase from $20.7 billion the previous year, hitting $36.6 billion in 2016. Video revenue more than doubled to nearly $4.2 million—up 145 percent year-over-year. Digital video hit a record $9.1 billion in 2016, a 53 percent year-over-year rise from $5.9 billion in 2015.
A recent survey conducted by AdsNative found that 92.3 percent of those polled (7,500 web and mobile publishers) saw native ad revenue increase in the last year. Of those surveyed, 69.2 percent are getting the most revenue from direct sales, 84.6 percent do outstream video and 68.9 percent are monitoring ad blockers but haven’t been greatly affected by them yet.
Loyalty Requires Options
Last year, mobile marketing company 3Cinteractive surveyed US internet users to see how they preferred to receive loyalty-related communications from brands. Participants were asked to choose one channel. In 2016, nearly half of US internet users surveyed said they preferred to receive loyalty-related communications via SMS and roughly one quarter said they preferred email. A year later, only 21 percent of respondents wanted texts from loyalty programs.
Given more options in its 2017 poll, 10 percent selected virtual assistants and 18 percent wanted communication via wallet.
Nintendo expects its new Switch console to more than double annual operating profit and end the eight-year sales decline, according to a news briefing on Thursday. “We are hoping to change the tide of our business with the Switch,” Nintendo president Tatsumi Kimishima said.
Nintendo estimated profit to grow 2.2-fold to 65 billion yen ($584 million) in the year through March 2018, with sales jumping 53.3 percent.
Digital revenue grew by 15 percent in March across all platforms in the US, according to SuperData. Total US digital revenue came in at $1.46 billion, up from $1.27 billion in the same month last year. Console digital grew 17 percent thanks to new releases Mass Effect: Andromeda, Tom Clancy’s Ghost Recon: Wildlands and Nier: Automata.
Free-to-play and mobile grew 12 percent and 21 percent, respectively. Worldwide, the digital video games market grew seven percent in March to a new high of $8 billion.
Top Grossing Titles For March 2017 By Category (Globally):
- League of Legends
- Dungeon Fighter Online
- New Westward Journey Online II
- World of Tanks
- World of Warcraft
- Counter Strike: Global Offensive
- Lineage I
- Tom Clancy’s Ghost Recon: Wildlands
- Tom Clancy’s Ghost Recon: Wildlands
- FIFA 17
- Battlefield 1
- Horizon Zero Dawn
- Grand Theft Auto V
- Call of Duty: infinite Warfare
- Call of Duty: Black Ops III
- Mass Effect: Andromeda
- ARK: Survival Evolved
- Clash Royale
- Monster Strike
- Mobile Strike
- Game of War: Fire Age
- Clash of Clans
- Fate/Grand Order
- Honour of Kings
- Pokémon GO
- Fantasy Westward Journey
- Lineage 2 Revolution