Cyber Monday sales increase 16.6% totaling $9.2B, Amazon DSP of Choice, UK ad spend grows 7%
The way it’s going, Cyber Monday will become the new “barometer” for the health of consumer spending. Online sales in 2019 busted records as consumers confirm they’d much rather shop on the internet instead of trekking to the mall. Cyber Monday sales, according to Adobe Analytics, registered a whopping $9.2 billion, up 16.6 percent from a year ago. And Adobe says for the first time on Cyber Monday, consumers will spend over $3 billion on their smartphones over a 24-hour period. Adobe also estimated that people spent an estimated $11 million per minute between 11 pm ET to midnight.
All of this is indicating that Black Friday has lost its clout and is old news as far as holiday shopping goes. Traffic was much lighter at malls and stores in 2019, according to analysts and onlookers. Brick-and-mortar stores sales dropped 6.2 percent on Black Friday. However, Adobe also reported online shopping hit a record of $5.4 billion, up 22.3% from a year ago. Summing it up, an Oppenheimer & Co. analyst said: “that overall trends in consumer spending remain healthy and that those chains with the best, most compelling online offerings are best positioned to capitalize upon this solid underlying dynamic.”
Research firm Advertiser Perceptions’ recent Programmatic Intelligence Report shows that Amazon continues to be the top demand-side-platform amongst advertisers. Forty-six percent of the advertisers surveyed said they have used Amazon Advertising in the last 12 months. That’s a number that’d down two percent from the last report but still leading the pack. The Trade Desk was the second most popular DSP with 38 percent, followed by Google at 33 percent. Other preferred DSPs include MediaMath (31 percent), Adobe Advertising Cloud (25 percent) and AppNexus (24 percent). Amazon was also the top pick when advertisers were asked if they could only use one DSP, which one would it be? Amazon’s lead in this area grew to 29 percent, up 16 percent from three years ago. The survey also revealed that since September 2019, most advertisers are using DSPs as a managed service. Thirty-seven percent using them in both a managed service and self-serve capacity. Only 18 percent use DSPs as self-serve only.
The latest forecast by GroupM says a 6.7 percent rise in advertising spend in the UK is being driven by digital formats and a general shift towards digital marketing. Overall, UK advertising spend is expected to increase to £23. 6 billion in 2020, up from £22.2 billion this year. The forecast is also showing digital pure-play media owners will eventually account for 73 percent by 2024. In 2019, that number was 66 percent. Group M says Facebook, Amazon, Netflix, Alphabet, eBay, IAC, Uber, and Booking.com globally spent £20 billion on ads in 2018, which is driving the shift towards digital. Traditional TV advertising will remain at a flat 20 percent in 2020. Group M says the numbers indicate that marketers should consider investments in marketing infrastructure, technology software and other external services.
According to WAN-IFRA’s 2019 World Press Trends report, audiences paying for print and digital news worldwide grew slightly in 2019. To no one’s surprise, the growth came almost entirely from digital. However, print in newspapers still accounts for 85 percent of revenue worldwide but that is down from 89 percent last year. WAN-IFRA says Google remains the most important traffic source for news companies globally. Based on a review of 2018 Chartbeat data, Google generated two-thirds of outside traffic in 2018, providing 25 times the traffic for publishers than Twitter does and almost two-and-a-half times more than Facebook. And the Chartbeat data shows there is still room for subscription growth. Data from 248 countries showed that while traffic from news subscribers remained stable, the number of guest pageviews increased 76 percent over an 11 month period to February 2019. This indicates that internet users globally are seeking out news from reliable publishers.