A look at how last week’s news affects mobile publishers…
Snap Posts Gains in Users, Revenue
Recent changes to the website and the launch of new advertiser tools are the reasons for Snap Inc.’s report on another quarterly increase in users and revenue, according to The Wall Street Journal. The Santa Monica, CA-based company said the number of daily users rose by seven million in the third quarter of 2019, marking its third consecutive quarter of growth.
The third quarter wasn’t as strong as the second quarter and its 13 million user additions, when the company updated its Android app, released new games and introduced new augmented-reality glasses that can be used in conjunction with Snapchat. Third quarter revenue for Snap rose 50 percent from a year earlier, to $446 million beating analyst’s expectations. Average revenue per user also rose 33 percent from the third quarter in 2018.
Other heavyweight social media companies are scheduled to release earnings soon. But none of them are expected to show the increases in daily users like Snapchat has.
Snap Launches Dynamic Ads to Draw More Advertisers
Dynamic advertising is a real-time method to automatically create ads and target audiences. The platform can select and present items from advertiser’s product catalogs to people with relevant interests. This eliminates having to advertise a single product individually. This is a convenience highly attractive to advertisers. It is said DTC focused brands especially favor this option.
According to the company, global advertisers would be able to use dynamic ad platform on Snapchat immediately, but campaigns will reach U.S. Snapchat users initially. A global rollout is scheduled for later. eMarketer says Snap currently accounts for only 0.5 percent of the global digital ad market dominated, of course, by Google (32 percent) and Facebook (21 percent).
Global Ad Spend to Grow to $656 Billion as Internet Accounts for Over Half for First Time
Internet formats will account for over half of global advertising spending for the first time ever in 2020, according to the latest forecast from WARC.
WARC says global ad spend itself is expected to grow by six percent next year, reaching $656 billion but if you take away the “big three” (Google, Facebook and Amazon) then the overall investment in advertising will be flat.
All of the 19 product categories followed by WARC are expected to see growth next year. Eight of them are predicted to increase ad spend more than the global rate. They are financial services, household & Domestic, transport and tourism, technology and electronics, alcoholic drinks, automotive and soft drinks, all increasing between 11.8 percent and 6.5 percent. The Internet outpaces all sectors except technology and electronics as the fastest growing ad medium.
Instagram has one of the Highest Levels of Ad Effectiveness
A new “Viewability vs. Memorability” report shows that Instagram has one of the highest levels of advertising effectiveness. In a study that used eye-tracking technology to determine ad memorability found that Instagram had a score of 10.8 percent, even though the amount of time users looked at ads during an Instagram session was only 1.9 percent.
Instagram was shown to be 8.3 times more effective than gaming ads and 5.4 times better than desktop ads. Overall, 77 percent of Instagram users looked at an ad at some point during a session. The report was positive for larger format mobile in-article ads and pinned ads, with attention rates respectively described as 4.1 percent and 3.9 percent.
The least effective ads, according to this study, were gaming banner ads that were “overlooked” by an astounding 98.5 percent of the time they were in view. The report said respondents could hardly recall any brands or products that were displayed while gaming.
Mixed Mobile Reality Delivers Big Profits to Social Platforms
The ability to superimpose interactive images and videos onto real-world environments, otherwise known as “mixed mobile reality,” has become an $8 billion business with expectations that it will reach $43 billion by 2024.
In a study published by Juniper Research, social media applications involving mixed mobile reality will account for 40 percent of the business within four years. Juniper says the growth of 5G networks and what are known as “edge computing” (decentralized data processing) is driving mixed reality’s growing popularity.
Mobile apps will continue to dominate the market, according to Juniper. The firm predicts 75 percent of consumer mixed reality will be attributable to smartphone apps by 2024. This is due to an established base of nearly 6 billion smartphone users on top of established content distribution that comes from app stores.