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Will Mobile And Programmatic Be The Focus Of 2017
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Sep 29, 2016 by Mark Maier
The Center For Media Research believes so and quotes some pretty hard-core statistics to back up the claim. What was thought-provoking and opportunity laden for me was the comment that 27% of businesses do not have a mobile friendly website..."According to an AdRoll survey of a thousand US marketers across industries, this year marketers are thinking mobile first, despite persistent challenges. In 2015, the percentage of marketers retargeting on mobile jumped from 54% to 82%, says the report. This huge increase speaks to the importance of reaching people where they’re spending more and more time on mobile devices.
However, 34% of businesses still don’t have a mobile app and 27% still don’t have a mobile-optimized site. Some advertisers find that the user experience of mobile advertising continues to be a hindrance, and 41% of marketers say that their greatest stumbling block is mobile attribution, according to the report.
84% of marketers assert that solving for attribution is critical to success in marketing. The number of marketers who've now adopted an attribution model that tracks multiple customer touch points, rather than a single-click model, has spiked to 40% from just 24% in 2014. And, compared to only 14% in 2014, an impressive third of marketers now attribute over 50% of conversions to view-throughs, says the report.
Importantly, says the report, marketers have enthusiastically embraced the programmatic era with an incredible 98% of marketers planning to maintain or increase the coming year's budget for programmatic ads. Across all channels, marketers are investing heavily in programmatic strategies, with 32% spending over 50% of their online-advertising budgets on programmatic, and 87% of marketers believe that programmatic ads provide a greater return on investment than traditional media.
In 2013, only 7% of marketers spent more than half of their budgets on programmatic advertising. That number quickly grew to 14% in 2014. By 2015, 22% of marketers had dedicated the lion’s share of their budgets to programmatic ads. Programmatic advertising continues to be adopted rapidly, and marketers are still spending more on programmatic ads than on other media types, says the report.
Year-Over-Year Investment In Programmatic Advertising (% of Respondents) | |||
Year | <10% of Budget | 10-50% of Budget | >50% of Budget |
2013 Marketers | 40% | 53% | 7 |
2014 Marketers | 15 | 71 | 14 |
2015 Marketers | 6 | 62 | 32 |
Source: AdRoll, September 2016 | |||
Looking ahead to 2016, 66% of marketers expect to increase their programmatic advertising budgets. Standard display is where programmatic advertising began, notes the report. However, once programmatic became available on social media, it overtook all other categories, says the report. Most marketers have adopted programmatic buying for social media and, for B2C companies, programmatic for social media is now 50% more popular than programmatic display.
As programmatic buying continues to evolve past the web, cross platform marketers have taken to it just as readily on other channels. A third of marketers are now buying programmatically on mobile; a quarter on TV; and a fifth on video. This rapid, broad adoption across channels is an extremely strong indicator of its inherent ability to drive performance.
B2C Marketers Lead The Way In Programmatic AdBuying (% of Respondents) | |||
Media | B2B | B2C | Total |
Social Media | 57% | 75% | 63% |
Display | 37 | 50 | 42 |
Mobile | 25 | 47 | 32 |
Video | 14 | 32 | 20 |
TV | 22 | 32 | 26 |
I don’t know | 01 | 06 | 03 |
Source: AdRoll, September 2016 | |||
An indispensable tool for driving conversions, retargeting can be employed at every stage of the marketing funnel, says the report. The vast majority of marketers surveyed are already retargeting on mobile, and 87% plan to increase this investment in 2016. Marketers are turning to mobile retargeting to drive on-the-go conversions, increase overall reach, and further develop their social strategy, says the report.
Biggest Challenges In Mobile Advertising | |
Challenge | % of Respondents |
Increase in mobile conversions | 51 |
Increase in app installs | 35 |
Increase in overall reach | 33% |
Extension of social strategy to mobile users | 25 |
Integration with other digital campaigns | 20 |
On-the-go users reached in consideration stage | 18 |
At-home users reached watching TV | 14 |
Source: AdRoll, September 2016 | |
Marketers are generally getting a better handle on attribution, says the report. Last year, only 24% of marketers were tracking campaigns using an attribution model with multiple touch points; this year, that number nearly doubled to 40%. Conversely, the number of marketers who report being unsure about how to approach attribution has fallen considerably, from 16% to just 7%.
More marketers are attributing greater weight to view-through conversions (VTCs) for display campaigns, says the report. In just one year, there’s been a 107% increase in the number of marketers who attribute more than 75% of conversions to view-throughs. Meanwhile, the number of marketers attributing fewer than 25% to view-throughs has fallen significantly.
A quick recap:
- 84% of marketers believe attribution is critical to, or very important to, marketing success, compared to just 35% in 2014; a 140% increase
- 58% of marketers say their primary objective for email is to increase engagement
- 87% of marketers plan to increase their investment in mobile in 2016
- 82% of marketers are currently retargeting on mobile, up from 54% in 2014
- 1/3 of a marketing budget is allocated to prospecting for new leads, and another 1/3 goes to converting them into spending customers
- 46% of marketers cite paid social media as a top performing channel for acquiring new customers
For more information from AdRoll, please visit here."
