Why Mobile Ad Spending Will Surpass TV This Year
3 reasons companies are shifting ad budgets toward mobile and social media.
The year 2018 will go down in history as the year mobile ad spending surpassed television. According to a report eMarketer released earlier this month, mobile will account for nearly 70 percent of all digital advertising this year. With a 33.9 percent share of total U.S. ad spend, mobile will pass TV as the country’s leading advertising channel. By 2022, that share will climb to nearly 50 percent.
There are many reasons companies are shifting their ad budgets away from TV and toward mobile. Here are a few:
- More cost-effective. The average cost of a 30-second primetime television commercial during the 2016-2017 season was $2,500. Think for a minute (or 30 seconds) about how many mobile and social media ads your firm could deliver with that kind of investment. Not only that, but you can also be more confident in the return. Social media advertising follows a pay-per-click model, meaning you pay when users take the action you want them to take, such as clicking through to a web page or filling out a lead form.
- Better targeting. It goes without saying that there’s one primary activity TVs are used for — watching TV. Unlike mobile phones, people don’t take TVs everywhere they go and use them to shop, surf the web, and engage on social media. Therefore, advertisers are limited in the targeting they can do on TV. With mobile and social, on the other hand, companies can target ads to consumers based on their location, demographics, interests, and behaviors. And, with the help of Denim, they can deliver the ads on behalf of local agents or advisors. To learn more, read A Brief Guide to Mobile and Social Media Audience Targeting.
- More relevant. Today’s digital consumers expect the companies they do business with to have a mobile and social media presence and deliver a multi-channel experience. In a 30-second video, Catherine Smola, president and CEO of the Centre for Study of Insurance Operations, recently shared some interesting stats that reinforce the importance of having a strong mobile strategy. According to Smola, 50 percent of consumers believe that if a company does not have a mobile website, it does not care about his or her business.
Has your company reviewed your digital advertising budget recently to determine if you are doing enough mobile advertising? If not, it’s likely something to put on the agenda for your 2019 budget discussions.
If you would like to learn how Denim can help you scale your mobile and social media advertising efforts to achieve even better results, schedule a demo.