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Mobile has never been more relevant to marketers. Development and availability of mobile hardware has led to an increased capacity to communicate with others and increased opportunities for marketers to access consumers (see our head-to-head comparison infographic of Google’s first smartphone Pixel vs. iPhone).
Rapid mobile adoption has been followed with increasing mobile content consumption, prompting publishers, social networks, and advertisers to evolve accordingly. To give marketers a better understanding of mobile’s dominance, we found the 10 most significant mobile advertising statistics that marketers will need to know heading into 2017.
Combined traffic from mobile devices, which includes mobile and tablet devices, surpassed traffic from desktop devices for the first time by 2.5% (TechCrunch). Since the middle of 2013, the amount of digital media access on mobile has increased by 16% while digital media accessed on desktop decreased 16% (Marketing Land).
While internet usage on mobile devices is certainly not new, it has become the mainstream preference for digital media consumption. Increased mobile usage and decreased desktop usage means that marketers should continue to look to mobile as advertising pathway, if not already the dominant format.
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Nearly three-fourths of American adults own a smartphone representing a consumer base that is more interconnected and better accessed (Pew Global). Smartphone ownership is accompanied with staggering use, with 93% of total smartphone owners reporting that they’ve looked at their phones within three hours of waking up, and for 18-24 year olds, it is 97% (Deloitte). Mobile devices have been integrated into daily routine, indicating massive potential for high engagement rates for marketers.
With nearly two-thirds of all digital media time spent on mobile apps, marketers must have a comprehensive mobile strategy in order to have a complete digital marketing plan (Smart Insights). Even more, 2 out of 3 digital media minutes is spent on mobile (comScore).
Mobile is where users are consuming content and conducting their daily activities, and not providing a satisfactory mobile experience means that marketers are missing out on opportunities to capture their audience’s attention.
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Ad spending on mobile has been expected to experience a 38% upshot from 2015 to 2016 (eMarketer). At an estimated $43.6 billion, mobile will represent 63.4% of total digital ad spending in the US at the end of 2016 (eMarketer). With nearly two-thirds of total digital ad spending focused on mobile, it looks like marketers will continue to allocate the majority of their advertising spend towards mobile.
By 2020, mobile commerce is expected to rake in $284 billion in sales, approximately 45% of total e-commerce (Digiday). For 2016, expected mobile commerce will hit $79 billion which only represents 20.6% of overall e-commerce (Digiday).
Unsurprising, mobile is shaping the consumer’s purchasing behaviors, not only giving consumers a more immersive buying experience, but also presenting increasing opportunities for consumer to make a purchase. For instance, Instagram’s launch of the “Shop” button on advertisements and shoppable photo tags gives users a complete online impulse-buying experience (Wall Street Journal).
Mobile apps have much higher engagement rate than the mobile web and desktop with conversion rates that are 100%-300% higher (TechCrunch). Overall, mobile app users spent more than 3 hours a month on the top 1000 apps which is 18 times more than how much time users spent on on the top 1000 mobile website (comScore).
Mobile apps are popularly used because it provides an immersive and personalized experience for users who have downloaded. Mobile apps tend to be more interactive, have more complex functions, and sometimes do not even require a wireless connection. While mobile websites are considered to be more marketing-driven, marketers should also look to building mobile apps and advertising on mobile apps to supplement campaigns, build brand presence, and provide interactive, personalized user experiences.
Ad blocking on mobile rose 90% since 2015, with 419 million smartphone owners using ad blocking software (Adweek). This represents one out of five smartphone owners (The Verge). Ad blocking on mobile has become particularly prevalent in emerging markets such as China, India, and Indonesia, as it reduces load times, bandwidth use, and spending on data plans (Engadget).
While mobile ad-blocking has only reached 4.3 million American mobile users, mobile ad-blocking is a threatening trend to publishers who rely on ads to fund free content and to brands who spend on ads for exposure (The Verge).
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Over 4 in 5 minutes of time spent on social networking or social media sites and apps is on mobile (Marketing Land). This means that if businesses are looking to utilize social networking sites like Facebook, Instagram, Twitter, or Pinterest, businesses must have a mobile ad strategy.
Social and mobile are strongly tied. For instance, 31% of all mobile device time is spent on social media (IBM). Advertisers should use mobile’s strong relationship with social to deliver the a campaign that will reach and engage the larger audiences.
Facebook and Google are competing for dominance in the mobile advertising market, and both have found incredible success in the space (Reuters). In their recent Q3 earning report in 2016, Facebook earned $5.7 billion on mobile ads alone, 84% of its total $6.8 billion (TechCrunch). Google has also found that mobile search and video is the core of its advertising business, accounting for about 60% of Google’s ad revenues (CNBC; eMarketer).
Google is pushing further into extending its arm into smartphones with its house-designed Pixel, enriching its advertising targeting capabilities (CNBC). Facebook and Google’s pursuit of mobile advertising will continue to be strong tools and represent growing opportunities for marketers.
Mobile messaging apps represent the next frontier of mobile advertising. In total, there are about 3 billion monthly active users of messaging apps to the 2.5 billion using social networking apps (Adweek). Moreover, messaging apps have double the retention rate of the average for all apps, 68% to 38% (Adweek). While Marketing on mobile messaging apps hasn’t quite taken flight in the US, Japan’s Line and China’s WeChat are tapping into a potential advertising gold mine (Wall Street Journal).
Line and WeChat are allowing marketers to use their platforms to reach out to uses about millions of services. Facebook, on the other hand, hasn’t monetized Facebook Messenger or WhatsApp. What current social apps have to offer on mobile messaging for marketers will be better explored in the near future.