It's coming this year.
Oops, no next year.
Wait, really, it’s coming.
And here we are.
The industry consensus is that we have now reached the tipping point for mobile. This is the year and it is explosive. The phone has arguably become an extension of us and made multi-screen viewing more commonplace. Nielsen says 84% of consumers use their mobile device as a second, supplementary screen to the TV.
It is not however, all about the device. It’s about people, changes in behavior, shifts in the customer journey and the technological advancements that enable us to reach and engage our customers anywhere, anytime and anyplace. The mobile consumer has moved front and center and must be prioritized in our practice, plans and efforts.
What does this mean for digital media and advertising? Mobile search ad spending will exceed desktop search ad spending for the first time in 2015. Mobile spend is projected to make up 72% of total digital ad spend in the US by 2019, according to eMarketer. This puts US mobile ad spend on track to increase 50% this year and hit $28.7 billion. At that rate, mobile ad spend will account for 49% of all digital ad spending in the US.
The increase in mobile ad spending is being driven mainly by consumer usage and demand. Big players such as Google and Facebook have also shifted their advertising models to further support and accelerate the increased investment in mobile. eMarketer reports, “This year, Facebook will close in on $5 billion in US mobile ad revenues alone, all of which appear in display formats.”
Facebook has ascended as the most used app, in both audience size and share of time spent among each demographic segment. The platform’s explosive shift from a more purely social community platform to a mobile, content and advertising powerhouse has huge implications for marketers. The limits on organic reach demand more engaging content and audience buying expertise. Sheryl Sandberg, chief operating officer at Facebook highlights that, “Globally, over 65% of Facebook video views occur on mobile. Marketers have followed this trend and are using video to help people discover and learn about their brands.” (Source: Facebook’s Q4 2014 earnings call)
Further underscoring the need for mobile content development expertise, Google recently announced that websites that are mobile-ready could fare better in searches. At Netplus, our clients have seen as much as a 190% increase YOY in mobile traffic with mobile revenue up an average of 76.24%.
How consumers view and interact with content also becomes critical when thinking about mobile ad formats. Snapchat’s CEO, Evan Speigel and many other social, mobile and video players are realizing for example that “people just don’t rotate their phones,”
The shift in consumer media consumption, shopping and buying behavior has a fundamental impact on the marketing and advertising industry and our respective practices. Whether you are selling, creating, buying, distributing; whatever your role is in the industry it is imperative to understand the impact. The rise and increasingly critical importance of mobile marks the consumer tipping point, where the consumer is now even more in control of where, how and what content they choose to interact and respond to.
It’s somewhat ironic and glorious that our technological advancements and devices have empowered consumers even more so. And we must respond accordingly.