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Platforms Under Siege
$100B For Mobile
The global mobile ad market is poised to hit $101 billion in 2016, eMarketer predicts. That’s a 430% increase from 2013, and will account for more than 50% of all digital ad spend. China and the US are leading the global market in both device use and mobile ad spend. “Growth in mobile ad spending is being driven by consumer adoption of mobile devices,” writes eMarketer, adding that in 2016 there will be more than 2 billion smartphone users worldwide, a fourth of whom will be based in China. In China and elsewhere, “Many consumers are accessing the internet mobile-first and mobile-only, so leading advertisers allocate their digital expenditure to mobile accordingly.”
The Weather Company’s decision to focus on video across mobile and desktop is paying dividends. “On desktop alone, the company drew more than 13.2 million unique video viewers” in February, Digiday reports, putting the company in the enviable position of offering audience tracking and branded video experiences across the triple crown of websites, mobile apps and TV. The problem for The Weather Company mirrors that of many in the industry: a mobile ad system that requires “optimization” and consumer pushback on video ad formats. More.
Wanted: Publisher Revenue Diversity
In a Q&A with NiemanLab’s Joseph Lichterman, The Economist deputy editor Tom Standage says digital publishing’s reliance on advertising is problematic. “An awful lot of [news organizations] seem to have business models that are dependent on advertising, and I don’t think it’s going to work.” Instead, the Economist wants to reinvent. “We’re switching toward what we call thought leadership, which is we sell sponsorship of conferences, with white papers, with online advertising as well,” Standage said. “It’s not straightforward display advertising. It allows advertisers to associate themselves with particular topic areas, or raise their profiles in particular areas.” It remains to be seen if the many VC-backed outlets can stand on their own feet, but for Standage, “I don’t think the current model is sustainable.”
Programmatic Turns 10
Wednesday marked the first online ad exchange’s 10th anniversary. In 2005, Brian O’Kelley was at Right Media, where “almost by accident, I built a feature that allowed companies to bid into each other’s auctions.” A patent that O’Kelley shares with Amy Kang would go on to “spawn hundreds of companies and billions of dollars of IPOs and acquisitions.” At 10 years old, programmatic digital spending just topped $10 billion in 2014, and according to eMarketer is expected to more than double that by 2016. Happy birthday indeed. Brian O’Kelley’s look back is at the AppNexus blog.
Programmatic Zinged In Viewability Study
Sizmek claims mobile ad viewability tops desktop, and ads served programmatically are less viewable than those served direct. Its study of 240 billion impressions found “desktop standard banner ads had a 48% viewability rate, way behind those of mobile at nearly 80%,” reports Mumbrella. And, the press release.
But Wait, There’s More!
- Is Change Coming to Ad Industry's Self-Regulation Policies? - Ad Age
- Twitter Acquires And Shutters Developer-Tracking Service tenXer - VentureBeat
- EU Lays Groundwork For Antitrust Charges Against Google - WSJ
- Media Deals In Early 2015 Total $23 Billion, Digital Most Active - MediaPost
- Programmatic Fuels Rise In Online Publishing Recruitment - Netimperative
- Brands Should Roll Out Promoted Hashtags With Organic Twists - Mobile Marketer
- AdsNative And Zemanta Partner For Programmatic Native Ad Exchange - press release