Archive for February, 2014

It’s All About Ads

According to an article at techcrunch.com by Ingrid Lunden, digital advertising is on a healthy path upward. Her numbers come from a report published by ad agency ZenithOptimedia. Global ad spending for 2013 was predicted to have reached $503 billion, and digital will have accounted for 21.8% of all ad spending, which is $109.7 billion in real numbers.

Meanwhile, mobile remains a solid minority of activity: in the U.S., mobile ads will account for 3.7% of all ad spend ($6.2 billion) in 2013.

Lunden states “When it comes to what is driving the most growth in advertising at the moment, mobile continues to lead the way, growing by 81% this year in the U.S. market, with that rate slowing down to 61% in 2014 and 53% in 2015, when mobile will make up 8.4% of ad spend. Compare that to Internet advertising, which is growing by around 16% and will account for 27.8% of all U.S. ad spend by 2015.”

“ZenithOptimedia’s analysts say that mobile is growing seven times faster than desktop Internet spend, with mobile ads growing by 77% in 2013, 56% in 2014 and 48% in 2015., driven by the rapid adoption of smartphones and tablets. Globally, internet advertising will grow at an average of 10% a year.”

According to Lunden, the rapid growth of mobile ads should come as no surprise. The trend seems to be that sales of tablets are set to overtake those of PCs in the near future, and smartphones are becoming the primary way that people go online.

The importance of mobile advertising will increase over the short-term, but “There is still a long way to go. Although we have all heard about the decline of print and how many old-school publishers are feeling the crunch, and how people are turning off the radio to listen to services like Spotify, the knock-on effect on advertising is taking longer to emerge. If you look at 2012, the combined ad spend for newspapers and magazines still outweighed that of Internet spend. If you add in radio to that, by 2015 they will still outweigh Internet spend.”

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Are Native Apps the Way to Go?

In the Alliance for Audited Media Digital Publishing Survey “How Media Companies are Innovating and Investing in Cross-Platform Opportunities”, they start by stating “In the past decade, digital publishing has become widespread thanks to expanding consumer adoption of tablets and other mobile devices. For traditional media companies, digital content has progressed from static replicas of a print edition and basic website content to dynamic, engaging smartphone and tablet apps. Meanwhile, new media companies and platforms are emerging that drive innovation, audience engagement and new business models.”

Digital publishing is becoming more and more widespread due to consumers’ love for their tablets and other mobile devices. From digital publishing’s beginnings as static replicas of print publications to today’s dynamic smartphone apps, publishers are always seeking ways to drive innovation and audience engagement.

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In 2012 The AAM polled its large membership of media brands to gather insight into how they were adopting and embracing mobile media. The numbers have changed for 2013, but the basic trends continue. This is what they learned:

  • More than ever, AAM media companies are distributing their content via mobile devices. When we conducted our first survey three years ago, 51 percent of respondents claimed a mobile presence. Today, it stands at 90 percent. Even more encouraging, the remaining 10 percent plan to develop mobile-optimized content in the next year.
  • In a market flooded with competing devices and operating systems, publishers are distributing their content on multiple platforms, eager to get in front of readers on their device of choice. Eighty-five percent have iPhone apps, 87 percent have iPad apps, 67 percent have Kindle apps, 57 percent have Nook apps and 75 have Android apps.
  • While Apple products still dominate the market, Kindle and Nook apps are growing at an astonishing pace. The number of publishers developing Kindle apps has grown two and a half times, up from 24 percent in 2011 to 67 percent in 2012. Nook apps have increased more than four times, from 14 percent in 2011 to 57 percent in 2012.
  • With regards to app publishing technology, our survey respondents were split. Seventy percent are producing native apps—downloadable programs built for specific operating systems—while 67 percent are producing Web apps, programs that use web browsers to deliver content and are optimized for specific screen sizes. When we dig deeper into the data, we note a difference between magazines and newspapers. Eighty percent of magazines are leveraging native development technologies for at least one app versus 50 percent using browser-based web apps.

Ask us about native apps and read more of the AAM survey at: www.auditedmedia.com/media/182933/aam2012survey.pdf

Mobile Apps are the Key Pieces to the Engagement Puzzle

According to a recent press release from Gartner: “By 2017, mobile apps will be downloaded more than 268 billion times, generating revenue of more than $77 billion and making apps one of the most popular computing tools for users across the globe, according to Gartner, Inc. As a result, Gartner predicts that mobile users will provide personalized data streams to more than 100 apps and services every day.”

People will use over 100 apps a day by 2017. Not only will more consumers be downloading apps, but they’ll be using more of them

The shift has already started: According to Flurry Analytics, app use increased by 115 percent in 2013 year-over-year. Messaging and social apps alone improved by 203 percent.

It’s time for your business to use mobile apps to engage your user base and prepare for the trend towards the integration of various platforms, including wearable devices, home electronics and even automobiles.

For brands, apps will represent the primary vehicle to directly reach out to and engage with consumers. And as more apps debut and adoption increases, businesses will be able to capture even more data about consumers and then use it to improve content and app experiences.

Digital publishers are already using mobile apps for smartphones and tablets to reach out to the consumer, but they should soon be prepared for consumers cycling through a multitude of apps across a number of devices on a daily basis.

Gartner states that “Mobile apps have become the official channel to drive content and services to consumers. From entertainment content to productivity services, from quantified-self to home automation, there is an app for practically anything a connected consumer may want to achieve,” said Brian Blau, research director at Gartner. “This connection to consumer services means users are constantly funneling data through mobile apps. As users continue to adopt and interact with apps, it is their data — what they say, what they do, where they go — that is transforming the app interaction paradigm.”

Having access to analytics and user trends over a multitude of devices will allow digital publishers to customize their offerings to reflect what their readers are actually doing, using and buying, thereby allowing for an efficient use of resources and target marketing.

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