Native Ad Spend Poised for Continued Growth, Majority Share of Digital Display Market

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US native digital display ad spending is predicted to continue to climb through this year and next to exceed $28B, per new eMarketer estimates. In so doing, native ads are expected to take a majority share of all digital display ad spending this year, per the forecast..

The vast majority of native display ad spending is expected to be allocated to social media: last year, 86% of the $16.2B market went to native social display ads, and that share should only drop slightly this year (84%) and next (82%).

Growth rates should remain high though soften over time, as one would expect: after a 36% rise this year, native ad spending is projected to climb another 28% in 2018.

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Netflix still has a huge lead in the streaming wars, but Hulu’s smaller service has loyal users

One big difference between regular TV and streaming TV is that streaming TV is pretty murky when it comes to numbers: We don’t know much about how many people are watching streaming TV services, or what they’re watching.

So here’s a little bit of light, courtesy of a new report from comScore: A chart that shows us the relative popularity — and usage — for Netflix, Hulu, Amazon Video and YouTube.

Most important caveat here: ComScore’s data, from December 2016, is measuring video streamed over Wi-Fi, at home, to TV sets. So it’s missing what’s happening on phones in and out of homes — which is a big deal — and what’s happening over wireless networks — a smaller deal.

Still, if we assume this data is at least directionally correct, it’s helpful.

We did know that Netflix is far and away the leader when it comes to streaming TV — the service says it has about 50 million subscribers. And comScore’s data syncs up with that, pegging the service’s penetration at about 40 percent of homes with Wi-Fi.

It is interesting, though, to see how far behind YouTube is when it comes to getting video to your TV. The world’s biggest video service gets to TV sets in less than 30 percent of the U.S., per comScore.

That may explain why YouTube is going to launch its own pay TV service — though YouTube has taken pains to describe YouTube TV as a “mobile first” offering.

And while Amazon and Hulu have been making a big push to build up their offerings, they’re still far behind. On the other hand, if you compare comScore’s data to earlier estimates from broadband services company Sandvine, they may be making progress. (Yet another caveat: Sandvine is measuring the amount of data those services push out; comScore is measuring how many homes they reach. So this is apples and oranges. Still, fruit.)

The other big takeaway: People who do use Netflix use it a lot — and so do people who use Hulu. Both services engage their users for more than 25 hours a month, comScore says.

TV, VR and AR: The Future Frontiers of Social Media

While we often get caught up in the ‘now’ of digital marketing, it’s worth also considering the future, and where you should be paying attention to in the years to come. And while virtual reality is the answer most would revert to when thinking about the future of social, what’s equally important is how we’ll get there, and what, practically, the evolution to these next stages of social communication will mean for you and your business.

Looking at the latest apps and developments, the future of social is currently moving most clearly towards two distinct fronts – taking over television as we know it, and into augmented reality. Virtual reality is the extension of AR, and it’ll take a while to get there, but while AR and VR are very different, the development of the two is closely linked, and will likely evolve in line.

Here’s an overview of the next frontiers of social, what they’ll mean for your business, and what you can do now to prepare.

Televised Revolution

Last year, live-streaming became the thing in social. While live-streaming, as a practice, has been around for some time, the development of mobile live-streaming – kick-started by the now defunct Meerkat – created a new wave which quickly grew to incorporate several platforms and offer various new choices.

But while live-streaming was the impetus, it’s certainly not the end goal. Definitely, the capacity to connect with people in real-time, via video, is an evolutionary step, but what the development of live-streaming really highlighted, more than anything else, is that social networks now have the capacity to do something they’d never considered: to take on traditional TV as they dominant media platform.

Some would argue that social is already the dominant media player, digital content has disrupted newspapers, magazines and radio to a significant degree, with social playing a big part. But TV remains the big one, the key platform for generating reach and engagement – our homes are literally constructed around the television as the prime communal entertainment source.

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eMarketer Unveils Estimates for Native Ad Spending

223894.gifOffering its first estimate of the size of the native advertising market, eMarketer said spending on native digital display ads will make up more than half of all digital display ad spending in the US this year.

The new forecast estimates that US native digital display ad spend will grow 36.2% this year to reach $22.09 billion. At that level it will make up 52.9% of all display ad spending in the US.

“Growth of native digital display is being driven by publishers’ pursuit of higher-value and more mobile-friendly inventory, as well as by advertisers’ demands for more engaging, less intrusive ads,” said eMarketer principal analyst Lauren Fisher, author of a new report that highlights the forecasts.

Subscribers to eMarketer PRO can access the report here. For highlights of the report, tune into the new episode of the “Behind the Numbers” podcast, which features a conversation with Fisher.

 

The vast majority of US native display ad spending goes to social networks, driven mainly by Facebook. This year, native social network display ad spending will reach $18.59 billion, representing 84.2% of all US native display. But social’s share of native is falling.

“We’re seeing a huge ramp up in non-social publishers adopting in-feed ads and video,” Fisher said. “Coupled with continued advances on the programmatic native front, this will accelerate non-social native display spending.”

Since native advertising is largely purchased on social platforms, it’s also almost entirely mobile. Native mobile display ad spending will reach $19.50 billion this year, representing 88.3% of all native advertising, and the share is growing. Native mobile will represent 64.5% of all US mobile display ad spending this year.

Nearly all US native display ads are purchased programmatically, thanks to the heavy influence of social ads, the vast majority of which are transacted via APIs. This year, native programmatic will represent 84.0% of all native digital display ad spending, or $18.55 billion. However, excluding social, programmatic accounts for under half of all native non-social display ad spending.

“It’s been a slow start to enabling programmatic buying for non-social native display ads, but with the majority of buying platforms quickly moving to accommodate native ads, we see that changing in the next several months,” Fisher said.

Here Are Some Stats That Put The Whole ‘Duopoly of Google and Facebook’ in Perspective

Screen Shot 2017-03-16 at 7.58.48 AMHere’s a positive spin on eMarketer’s recent report: Digital advertising on mobile will only become easier for marketers, as Google will control search and Facebook will control display.

But for those who enjoy a darker outlook, the duopoly that is Google and Facebook isn’t going anywhere soon, and in fact, will continue to grow: This year, the two will control 57% of all mobile advertising. Come 2019, that number will increase to 60%, eMarketer said.

That’s excellent news for Google and Facebook, as the majority of digital ad dollars are flowing toward mobile.

And each is laying claim to their turf.

In 2017, for example, Google will control a whopping 77.8% market share of the search ad business, or $28.5 billion in revenue, eMarketer said. That number will grow further by 2019 to 80%, or $36.6 billion in revenue.

“Google’s dominance in search, especially mobile search, is largely coming from the growing tendency of consumers to turn to their smartphones to look up everything from the details of a product to directions,” Monica Peart, eMarketer forecasting analyst, said in a statement. “Google and mobile search as a whole will continue to benefit from this behavioral shift.”

As Google maintains its grasp on search, Facebook is nibbling away display market share from competitors like Google, Yahoo and Twitter. According to eMarketer, Facebook’s U.S. display business will jump 32.1% to $16.33 billion, and will capture 39% of the U.S. display market.

Those numbers will increase come 2019, as Facebook will control 43.7% market share, or $23.9 billion in revenue, eMarketer said.

Helping fuel Facebook’s display push is Instagram, which will account for 20% of its parent’s mobile ad revenue this year, up from 15% last year, eMarketer said. Although Google’s display business will capture $5.2 billion in 2017, its market share will drop to 12.5%, down from 13.8% from the year earlier, eMarketer said.

“Facebook’s users are increasingly captivated by videos on the platform — not just on Facebook but on Instagram as well,” Ms. Peart said. “Video, both live and recorded, is a key driver of growing user engagement and advertiser enthusiasm.”

And for those expecting Snapchat to take on Google and Facebook, eMarketer said the company will only account for 1.3% of the mobile ad market in 2017. That number will eventually increase three years later to 2.7%, eMarketer said.

U.S. Digital Advertising Will Make $83 Billion This Year, Says EMarketer

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The so-called duopoly between Facebook and Google to control the bulk of digital ad spend is far from over, according to eMarketer.

The firm’s newest forecast expects for digital ad spend in the U.S. to grow 15.9 percent this year—the equivalent of $83 billion in revenue. Within that growth, Facebook’s ad revenue is projected to jump 32.1 percent while advertisers’ spend with Google will increase 14.8 percent.

Overall, Google controls 40.7 percent of the U.S. digital ad market, followed by Facebook with 19.7 percent. Google’s control primarily comes from search, and eMarketer expects that it will claim $28.5 billion of spend this year, which is 77.8 percent of the total $36.69 billion market. By next year, Google’s search revenues are expected to bring in $32.40 billion of the $40.49 billion industry.

Those numbers are more staggering when zeroing in on the mobile ad market. Google will make up 32.4 percent of mobile spend this year while Facebook generates 24.6 percent of spend, meaning that the two companies collectively make up 57 percent of mobile ad spend.

Read full article here.