Digital marketing spend is now estimated to account for more than 50% of all advertising spend. For the brands and marketers that invest resources—both time and money—in digital marketing channels, that statistic will be unsurprising. Yet with Q4 looming, we are stepping back to offer a broader perspective of what’s happening, how consumers are responding, and which channels to focus on moving forward.
Currently placed at $125B, Mintel forecasts that digital advertising spend could almost double by 2024, to $204.9B. Meeting that estimate would mean quadrupling spend within a decade, up from $49.5B in 2014. So, how should those enormous dollars be dictated? Efficient digital marketers will capitalize budgets on meeting consumers across multiple devices and at the correct times. Devices are being led by mobile; 92% of survey respondents used their phones in the last week, 77% utilized a computer, 55% experienced streaming devices, and 43% turned to their tablet. Of those smartphone users, 59% checked social media each day, with 21% dedicating thirty minutes or more to social daily. The potent combination of smartphone and social is also the leading place where consumers are seeing—and recognizing—online ads, with 74% remembering digital ads on social via mobile over the course of a week. In lockstep with this information is digital video advertising’s forecast, which is anticipated to grow at an annualized rate of 18.3% through 2024.
CONSUMER NUANCES TO CONSIDER
New consumer research suggests ideal strategies to target different age ranges and demographics. One interesting highlight: men ages 18-34 are more susceptible to marketing; 32% are more likely to consider a purchase because of an ad, a statistic much higher when compared to general consumers (21%). Less surprising is that this bracket over-indexes for use of streaming devices (66% streamed in the past week) and gaming (49% used gaming devices over the past week); those channels are smart avenues for reaching the 18-34 male. Seeking to connect with female Millennials and Gen Zers? Opportunity lies in trust, as this group is the most trusting of brands operating in the digital space regarding privacy. Half of Gen Z and Younger Millennial women felt that their online information was relatively harmless. Furthermore, 46% of Younger Millennial and 39% of Gen Z women will trade their privacy for something they want; the relationship is transactional. That said, this view of privacy is not the norm; brands looking to connect with older generations need to be very careful and transparent.
DIGITAL REACH, EMOTIONAL CONNECTIONS
Another new research highlight concerns influencer marketing. Though the cracks in this form of digital advertising are beginning to show, psychological data notes the channel’s tremendous, well, influence. Writes eMarketer, “Influencer ads generated 277% greater emotional intensity and 87% higher memory encoding in participants than TV ads did. Influencer ads were also similarly more effective than Facebook and YouTube ads, particularly when it came to memory encoding.” So, while influencer marketing should only be a part of your marketing mix—and executed wisely—it is a channel that is proving potent.
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Sources: Mintel, Digital Advertising–US—August 2019, eMarketer, “What Does Your Brain on Influencer Marketing Look Like?”