A look at how last week’s news affects mobile publishers…
Digital Appetite and Smaller Brands Fuel Ad Growth in New Forecast
Smaller and newer advertisers as well as ongoing growth in digital advertising are contributing to a significant upswing in ad spending.
Global advertising is nearing its strongest showing since 2010, according to a new forecast from ad-buying group Magna Global. Spending is on track to increase 7.2% in 2018 to $552 billion, the company said, raising its growth forecast for the year from an earlier projection of 6.4%. The company is also increasing its expectations for 2019 ad spending to 4.7% in growth from 4%. The spending is fueling breakneck revenue expansion for digital ad giants such as Google and Facebook, but less so for Madison Avenue, where many of the largest advertisers and their agencies are growing at a slower clip. The gap is an indication that a new batch of brands are starting to spend more money on advertising are working differently, if at all, with major ad agencies.
Growth in digital advertising drove a huge portion of the increases this year. Digital ad spending will grow by 17% in 2018 to $251 billion, Magna said, lifting that forecast by 1.5%. Growth will slow next year to 13.3%, according to Magna, though that, too, represents an improved outlook from the company.
Savvy Performance Marketers Make Bank When They Scale Their Ad Partnerships
Mobile performance marketers who work with multiple ad partners spend less to acquire users.
A growth marketer who works with five or fewer media sources pays an average of $3.58 per install, according to a report released by mobile marketing analytics company Singular. But upping the number of media sources from five to six or more actually lowers the CPI to around $2.24. In other words, when marketers scale their ad network partnerships, they get 60% more conversions and spend 37% less than marketers who are more conservative with their UA strategies. “In marketing as in all else, reward comes only with risk,” said John Koetsier, Singular’s VP of insights. “It’s easy to limit media sources, but the best mobile marketers use dozens and sometimes even hundreds of ad partners to find the best conversions at the lowest prices.”
With the rise of ad mediation networks that optimize for serving impressions to the highest bids and the shift toward unified auctions, it’s no longer necessary to use multiple SDKs for inventory access, but it’s still really important for apps to diversify channel coverage. Novice advertisers that saturate a single channel “will [just] end up bidding against themselves,” said Eric Seufert, head of platform at San Francisco-based game developer N3twork.
GDPR Laggards: Most Firms Are Not Fully Compliant, Study Shows
A minority of firms are fully compliant with GDPR six months after the law took effect, according to GDPR Implementation Review, a study by IT Governance.
Of the IT personnel surveyed, only 29% say their firms have completed implementation and can demonstrate compliance. Another 54% have begun the process but are not there yet. And around 4% have assessed their level of compliance but have not yet begun to make changes. And 2% have not yet begun. In addition, 47% say their policies, procedures and documentation are now in line with GDPR. But 45% say this has been only partially completed, and 5% have not done anything.
Yet 75% of those surveyed have conducted a data flow audit in some capacity. IT Governance, a global company, surveyed 210 of its data protection and GDPR clients. Email has played a large role in communication GDPR basics to staff — 50% have employed it. But it ranks second to staff meetings (60%). In addition, 39% have used training programs, 36.19% e-learning, and 22% comprehensive staff awareness programs.
Amazon’s Ad Business Will Speed Reckoning for Digital Publishers
Amazon’s growing advertising business is the next great disruptor for publishers that must contend with another digital rival. The U.S. advertising market may expand steadily next year, but digital giants like Amazon, Google and Facebook will put more pressure on publishers seeking to scratch out an existence.
Amazon currently has about 4% of the advertising market, a share that will grow to 7% in two years, according to researcher eMarketer.
While Amazon will grab market share from Google and Facebook, those companies will be better positioned to withstand the threat. Digital publications will also feel squeezed, pushing them to build up revenue from subscriptions, agency services, conferences, market research and referrals to ecommerce sites like Amazon. The ecommerce giant has a wealth of data about its customers, including a history of their product searches and purchases. Facebook and Google don’t have that level of detail about personal spending. The information can help advertisers to reach target customers, especially when they’re in the mood to shop.
Will Ad Dollars Continue Shifting From Facebook to Instagram in 2019?
Marketers began shifting ad dollars from Facebook to Instagram in 2018, and a top social media management platform only sees that trend gaining momentum in 2019. Socialbakers CEO Yuval Ben-Itzhak said company research focused on Facebook and Instagram because of their dominance in audience size and engagement.
“Twitter and Snapchat would be tiny dots on the chart compared to what you see with the Facebook services,” Ben-Itzhak said. “Facebook is of a scale where no one can actually hurt it. We don’t see marketers shifting budgets to Snapchat, Twitter or wherever.” And while Instagram’s audience size still trails that of its parent company, Ben-Itzhak said, “Marketers care about where their audiences are and where engagement is happening.”
The company said in its 2019 social media trends report, which it released Tuesday, that although ad spend on Instagram tapered off slightly after June, the photo- and video-sharing network is still “the go-to for capturing quality engagement within smaller communities.” Socialbakers also noted a shift in ad dollars from Instagram’s feed to Stories and showed that content from the fashion and beauty industries drew the most engagement on Instagram in 2018, while Facebook was led by ecommerce and “others.”