A look at how last week’s news affects mobile publishers…
Forecast: Mobile Grabs 43% of Ad Spend By 2020
Mobile will make up a greater share of U.S. media ad spending than all traditional channels combined by 2020. That remarkable projection comes from eMarketer, which expects mobile to account for 43% of media ad spending by 2020. This year, mobile will account for $76.17 billion of domestic media ad spending. That’s easily more than the $69.87 billion going to TV, and far ahead of print’s $18.74 billion, radio’s $14.41 billion, and out-of-home’s $8.08 billion. By 2022 — which is the end of eMarketer’s forecasting period — the research firm expects mobile ad spending to more than double TV spend.
By then, the channel will make up $141.36 billion of US media ad spending, while TV will account for $68.13 billion. Contrary to conventional wisdom only a short time ago, it’s becoming clear that consumers are happy to watch just about any type of media content on their small screens.
YouTube now counts ‘engagement’ for YouTube for action ads at 10 seconds, not 30
YouTube announced it is changing the attribution criteria for its video ads. TrueView for action ads are designed for performance advertisers and feature call-to-action banners at the base of the video ads. YouTube says it is changing the default attribution window from 30 seconds and 30 days to 10 seconds and 3 days to better reflect “the relationship between video ad exposure and conversions.” YouTube will now count an ‘Engagement’ whenever a user clicks or watches 10 seconds or more of a TrueView for action ad when using maximize conversions or target CPA bidding. That’s a change from 30 seconds. A ‘Conversion’ will be counted, by default, when a user takes action on an ad within 3 days of an ‘Engagement.’ If you want this changed, you will have to ask your Google rep to customize this time frame. That’s a change from 30 days. For users who click your ad, YouTube will still attribute conversions according to the conversion window you have set (the default is 30 days).
Latest Research Revises Programmatic Ad Forecast Slightly Upward
Programmatic ad spending is slightly higher than previous expectations, according to revised estimates being published by IPG Mediabrands’ Magna unit this week. In its 2018 programmatic forecast report, Magna now estimates the global programmatic ad marketplace is $34.1 billion, an upward revision from its previous estimate of $31.0 billion. The report said the global growth rate remained unchanged, up 22% over 2017, and that programmatic now accounts for 55% of worldwide digital media buying.
The biggest and one of the most mature programmatic markets in the U.S., programmatic now accounts for 65% of digital media buying and is projected to reach 84% in 2020.
Advanced Pixel Targeting has DTC brands trying Snapchat
Since Snapchat released its advanced Pixel targeting capabilities to advertisers in June, some direct-to-consumer companies say they are seeing up to a 50 percent lower cost-per-acquisition since applying the Pixel, prompting some to shift spending from Facebook and Instagram. Marketers say two ways the Pixel is driving decreased CPAs is its ability to bid on conversions rather than swipes, which allowed marketers to serve ads to people who are more likely to convert rather than ones just more likely to swipe; and the power to retarget Snapchat users that visit their websites. The Pixel is just the latest way Snapchat has been trying to improve its ad offerings compared to bigger, rival platforms.
5G to Drive $1.3 Trillion Media, Entertainment Revenue by 2028: Intel Study
Over the next decade, media and entertainment companies will compete for a share of a nearly $3 trillion cumulative wireless revenue opportunity, according to a new study. Nearly half ($1.3 trillion) the experiences will be accounted for by 5G networks, according to the “5G Economics of Entertainment Report” conducted by Ovum for Intel. By 2025, more than half (57%) of global wireless media revenue will be generated by the high-bandwidth of 5G networks and the devices that run on 5G, states the report. Due to low latency of the new networks, live streaming and large downloads will happen instantly. Content consumption — including mobile media, mobile advertising, home broadband and TV — will be accelerated and experiences improved across a broad range of new immersive and interactive technologies, such as augmented reality, virtual reality and new media, according to the report.
By 2028, video will account for 90% of all 5G traffic, and immersive and new media applications will generate more than $67 billion annually, according to the study.