Mobile Ad Spend To Equal TV Leverage The Mobile Opportunity!

It has been projected for some time that Digital will overtake TV Ad spend and eMarketer projects this transition will happen next year. This big story is that Mobile is projected to capture the majority of digital ad budgets for the first time, per eMarketer’s estimates. By 2020, it is projected to occupy almost three-quarters of digital ad budgets and equal TV ad spend.

US Media Ad Spending Share By Medium (Print=Print only; Radio=excludes off-air radio and digital
 

(% of Total Spend)

Medium

2014

2016

2018

2020

Digital

28.3%

35.8%

40.8%

44.9%

   Mobile

10.9

22.7

28.8

32.9

TV

39.1

36.8

34.8

32.9

Print

17.4

13.9

12.2

11.1

   Newspapers

9.1

7.2

6.1

5.5

   Magazines

8.3

6.8

6.1

5.6

Radio

8.4

6.1

6.7

6.1

Out-of-Home

4.0

3.4

3.7

3.4

Directories

2.8

1.7

1.9

1.6

Source: eMarketer, March 2016

eMarketer-US-Media-Ad-Spend-Share-2014-2020-Mar2016

While traditional media formats are expected to decline in share of total ad spend, dollars spent will not decline, due to continued growth in overall media ad spending, increasing from $192 billion this year to $234.3 billion in 2020. Though TV’s share of total ad spend will decline during that time frame, the amount of dollar spending on TV is expected to grow from $70.6 billion to $77.2 billion, concludes the report.

Mobile Engagement

With the steady increase in mobile ad spend and the increase in mobile engagement overall it is imperative that we as marketers continue to deliver mobile friendly experiences and move our value delivery to mobile devices. This not only includes our marketing and advertising but also our customer services as well. Customers are increasingly expecting  services to be instantly available on mobile either through mobile apps or through web services.  Companies that lead with “Mobile First” thinking and value delivery are positioned to dominate their markets over the next few years. Technology and market disruptions are a part of today’s  dynamic  business environment. Disruptions represent a huge risk for those who do not respond to them and a huge opportunity for those who capitalize on them.

Regardless of what industry you are in mobile will undoubtably impact your customer expectations. Customer expectations will drive customer experiences. Those that meet and exceed expectations will will gain market share.

Mobile Mind Shift 

As with most digital strategies I engage in developing, mobile is not just about a technology shift, it is about an mind-shift as well as a  product and service delivery shift.  These shifts will drive change which are often empowered by technology but these shifts also must be accompanied by changes in the behaviors of people, process and procedures which can sometimes be more challenging than implementing new technologies.  So when you plan your mobile strategies for the next few years be sure to include a transformation of your people, process and technologies to leverage the mobile opportunity across every touch point throughout your customers life cycle with your organization.

I wish you great success in making mobile  value delivery a strategic imperative within your company.

 

Author – Warren Raisch – March 21, 2016

 

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