UK digital ad spend increased by 12.5% to almost £5.42bn in 2012, according to a new report from the Internet Advertising Bureau (IAB).
The figures show that marketers have responded to the fact that smartphone ownership now stands at more than 64% in the UK by investing a massive £526m in mobile advertising.
This represents a rise of 148% on 2011 and the real term increase of £322.7m accounts for more than half (53%) of the £607.3m increase in total digital ad spend.
Overall mobile accounts for 9.7% of digital ad spend compared to just 1.1% in 2009, which underlines the growing importance of this channel.
But despite the massive increase in investment there is some evidence that work still needs to be done to improve the impact of mobile ads. A recent survey by Nielsen found that 53% of smartphone owners claim to have never received adverts while using their device.
So we’ve proved online performance marketing is big, but what’s next?
The headlines attached by the IAB and PwC to the ground-breaking study into Online Performance Marketing say it all: 'The UK's "hidden" £814m online economy'.
The report has provided fantastic ammunition for everyone involved in affiliate marketing and lead generation, whether talking from the network perspective, publisher or even client side, to point to the enormous value that OPM delivers.
We can see where the 12% average growth per year over the last five years has come from and where the potential for future growth might be. Financial services accounts for 45% of total spend retail 20%, media and telecoms at around 10% and travel and leisure at 9%.
Most large brands in the UK are involved in affiliate marketing and the study also signalled continued rapid growth with an average increase in investment of 25% this year.
Online advertising continues to grow by leaps and bounds, but that doesn't mean that life is easy for players in the digital ad ecosystem. In fact, the thriving online ad economy is increasingly complicated.
Unfortunately, things are only going to get more complicated. Need evidence? Look no further than last week's announcement that one of the most popular browser makers, Mozilla, will begin blocking cookies from third-party ad networks by default in Firefox 22.
For many advertisers, when it comes to ad formats, bigger and bolder is better. And for good reason: many consumers are blind to ads, so to get their attention, ads really have to stand out.
But as much as advertisers say they want new ad units that will stand out, they apparently aren't impressed with the bigger and bolder units the Interactive Advertising Bureau (IAB) unveiled in 2011.
This tool could help identify new opportunities for your business and show the senior execs in your business how consumers in your market are typically interacting between the online and the offline world when making a decision on which product to buy and where to buy it from.
The data behind the research is compiled by TNS, the IAB and Google (in case you are questioned on the credibility of this data).
The consumer barometer tool is split into four key areas each of which could go some way to help guide you answer some burning business questions regarding the multichannel shopping habits of your customers and strong the ROPO effect is in your market.
Though 2012 showed promise, it was clear that no brand had yet to create a compelling experience in the mobile space.
The so-called 'year of mobile', almost a cliché at this point, turned out to be anything but.
The IAB recently called for feedback on a newly released best practice guide for site tagging. This is a new area of comment for the IAB but a much needed one. They are aiming to form this guide to eliminate risk, improve site performance and protect site owners and advertisers from any privacy and security issues that can arise from poor tag management.
“Tagging is a fundamental element of the heavily data-driven interactive advertising ecosystem without which it would not continue to thrive,” said Steve Sullivan, Vice President, Advertising Technology, IAB. “To better meet the needs of publishers, advertisers, marketers and consumers, we must not only take account of the ongoing value of site tagging, but more fully understand the operational challenges presented by site tagging’s increasingly prolific use.”
As we round off the long weekend of deals with Cyber Monday, we have officially started the holiday season which can account for 20-40% of retailer's annual sales. This year, the NRF has estimated an increase of 4.1% of holiday sales to the tune of $586.1 billion with projections of $2 billion in online sales today in the US and Europe alone.
But retailers can't forget the importance of mobile. 16% of consumers are estimated to shop on their mobiles over the holiday season, up from 13% in 2011. As mobile becomes even more of a keystone in holiday campaigns and shopping, it's import to understand how consumers are using their devices.
The IAB in partnership with Prosper Mobile Insights released its second annual Mobile Shoppers study to show where mobile shopping hotspots are around the US as well as how consumers are influenced by apps and digital coupons.
Mobile advertising grew by 132% to £181.5m in the first half of 2012 compared to the same period last year and now accounts for 7% of all digital ad spend.
The figures comes from the latest Internet Advertising Bureau UK (IAB) advertising expenditure report conducted by PwC, which says the increase has been largely fuelled by the increase in smartphone ownership.
In March the IAB reported that mobile ad spend for the whole of 2011 was £203.2m.
Looking at how mobile ad spend breaks down; display, video, SMS and MMS advertising increased like-for-like by 91% to £49.9m while mobile search grew by 152% to £131.6m – accounting for 72% of mobile ad spend.
Hollywood may not have a reputation for embracing new channels, but it's increasingly clear that new channels have the ability to help Hollywood's biggest companies succeed as consumers use technology to interact with content in new ways.
This is especially evident in the world of social media. It's increasingly evident that social channels can impact the small screen, and even though television and cable networks may not fully understand what this means yet, many of them are experimenting and investing in social because they see the potential to benefit.