As we are toasting the passing 2017 and welcoming 2018, it is high time tipping our toes for exciting changes in adtech, be it in a solid form or in ambiguity. Being part of mobile adtech player, we had witnessed rapid growth in ad spending in number, as well as variety in ad forms. Video ads is taking off and occupied increasingly high proportion of ad traffic due to its engaging and interactive form. E-commerce surges in revenue and consumer purchase behaviour, leading marketing spending in mobile ad. All is good for a promising year to come, here are few eye-catching events in the trend.
1. Mobile ad spending grows. US, China, Japan, UK and Germany are heavily invested.
Spending on paid media worldwide will reach $584.14 billion by the end of this year and approach $757.44 billion in 2021, eMarketer estimates, driven largely by advertiser investments in mobile formats. The US, China, Japan, the UK and Germany will continue to be the top five ad markets throughout the forecast period. The US will rank first with $205.06 billion in paid media outlays this year. By 2018, China’s ad spend will surpass that of Japan, the UK and Germany combined. China will remain one of the largest contributors to global advertising growth, largely due to advertisers there investing more toward mobile. Programmatic video buying will hence be of increasing importance in terms of scale and quality, and it leaves hero traffic source such as search engine google, e-commerce giant Amazon, social media Facebook a very competitive edge comparing to the fragmented ones making of the rest in the picture.
2. Retail E-commerce continue to grow and expand in mobile space.
Research shows that worldwide retail e-commerce sales will reach $2.29 trillion in 2017, making up 10.1% of total retail sales. This share will surpass 16% by 20121. Even shopping is shifting to mobile-first. Mobile commerce will account for more than 70% of e-commerce sales in both China and India, and 59.0% in South Korea. In Germany, the UK and US, mobile e-commerce will comprise at least one-third of total retail e-commerce sales. Advertisers see an obvious traffic for purchaser to go to in Google & Amazon dominantly. Emarketer's research on sites where shoppers in US, France, Germany and UK go for buying decision, Google (search engine) and Amazon (dominant E-commerce portal site) captures approximately 85% shopper traffic, which are two key sites for purchaser with heavy intention. Social medias such as Facebook and Instagram attracted 27% shopper as priority site, however, it could be a key media channel for E-commercer to place branding ad marketing to maintain user engagement and brand loyalty. This requires not only large scale of traffic from search engine and e-commerce sites, but also innovative content and expressing ad formats, such as video.
3. Video format ads are intriguing. Its traffic and form expand.
People are watching video content on multiple destinations and in various forms nowadays, from long video streaming on Netflix and mid-length video on Youtube, to quick and fun snapchat and instagram videos. This is in line with the total 67% increase in digital/ mobile video ad spending over 2015 - 2017 by agency and marketer.
Programmatic advertising can support launching ads of various formats enabling precise targeting, and people are also getting used to various paid advertising formats of pre/mid-roll, playable ads, incentive in-game ads, 360-degree ads and canvas ads. We might also expect AR ads appear since there are AR apps were launched recent years. According to IAB’s research among advertiser respondents in 2017, programmatic video buying sees broad adoption and steady growth – accounting for 45% of all digital video dollars spent, and advertisers will spend over $ 9 billion on their brands’ digital/ mobile video ads. We will expect higher penetration of video content and more providers in the mobile app's landscape, and bigger ambitions of existing players expand globally, such as V App from Korea into Southeast Asian countries, and Netflix from US into 190 countries.
Appcoach, global mobile performance marketing agency, can reach vast mobile ad traffic in an effective fashion. Having clients of various trades, say, gaming, e-commerce and utility, Appcoach is resourceful in mobile media buying for different categories and performance optimization, as well as technology-driven programmatic ad campaign management tool to take it to next level. It leaves large room to unpack possibilities for an ad campaign to improve user value and enhance the branding effect through performance marketing on programmatic media buying globally. With the good study of the specific market and localized ad creatives, key media ad network’s nature and algorithm, Appcoach nails effective mobile marketing for you.