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Tag: mobile ads

  • Flipkart spends 80 percent of its digital marketing budget on mobile: Flipkart Ads business head Prakash Sikaria

    Flipkart spends 80 percent of its digital marketing budget on mobile: Flipkart Ads business head Prakash Sikaria

    MUMBAI: While addressing a session at a marketing conclave in Mumbai, that debated the relevance of mobile marketing and the need to go app first for brands, Flipkart Ads business head Prakash Sikaria shared that the  eCommerce giant spends almost 80 percent of its digital marketing budget on mobile.

    Sikaria’s confidence in the medium stems from the data the eCommerce site has gathered as an advertising and eCommerce platform that tracks its consumers’ usage behaviour on multiple screens.

    When posed with the question ‘is mobile a minor or a major screen’ Sikaria simply asked, ‘Is that even a  debate’. To back his astonishment at the topic of debate, Sikaria shared that for a eCommerce company such as Flipkart going mobile first was only natural, given that more and more of the site’s consumers are switching to spending more time on their smartphones.

    “Just to put things in perspective, 3 hrs of mobile in India is equatable to 92 mins of television, which is in turn equatable to 31 minutes of  desktop usage by viewers. What we see as a consumption pattern for several businesses mobile is the only screen in India, and going forward a large proportion of the time spent on any medium by consumers would be on mobile,” Sikaria shared, highlighting how India is unique in its mobile friendliness.

    Sharing some data the eCommerce platform has gathered from its own consumer research and data and analysis of consumer behaviour on the platform, around 50 per cent of the time spent on mobile is used for communication.  According to the consumer pattern gathered from traffic on Flipkart’s mobile app and its  web usage analysis, Sikaria inferred that usually customers try the mobile app first, and once they are convinced with the services and have grown loyalty towards the brand, they move to web. This places mobile marketing as the supreme most important requirement for a brand that functions mostly digitally, as it introduces the service to new consumers.

    “We have also noticed that across metrics there is better customer engagement and better customer experience on mobile from how much time consumers spend on the site per visit, to how many successful transactions they complete per visit,” Sikaria shared.

    As per Sikaria, once the user has jumped the hurdle of downloading the app the engagement is far higher on mobile than on other medium like desktop, provided the app is designed conveniently for them. That is the reason every ecommerce site, every travel startup or web based business wants their app to by in everyone’s phones.

    It is to be noted that between the four to five major eCommerce players in the country, television media raised about Rs 1,200 crores in advertising revenue in a single quarter, albeit it was before Diwali last year.

    Now with a key player such as Flipkart thinking mobile first, should television advertisement slot seller be worried about the smaller screen stealing away the advertisers which are native to the medium? 

  • Flipkart spends 80 percent of its digital marketing budget on mobile: Flipkart Ads business head Prakash Sikaria

    Flipkart spends 80 percent of its digital marketing budget on mobile: Flipkart Ads business head Prakash Sikaria

    MUMBAI: While addressing a session at a marketing conclave in Mumbai, that debated the relevance of mobile marketing and the need to go app first for brands, Flipkart Ads business head Prakash Sikaria shared that the  eCommerce giant spends almost 80 percent of its digital marketing budget on mobile.

    Sikaria’s confidence in the medium stems from the data the eCommerce site has gathered as an advertising and eCommerce platform that tracks its consumers’ usage behaviour on multiple screens.

    When posed with the question ‘is mobile a minor or a major screen’ Sikaria simply asked, ‘Is that even a  debate’. To back his astonishment at the topic of debate, Sikaria shared that for a eCommerce company such as Flipkart going mobile first was only natural, given that more and more of the site’s consumers are switching to spending more time on their smartphones.

    “Just to put things in perspective, 3 hrs of mobile in India is equatable to 92 mins of television, which is in turn equatable to 31 minutes of  desktop usage by viewers. What we see as a consumption pattern for several businesses mobile is the only screen in India, and going forward a large proportion of the time spent on any medium by consumers would be on mobile,” Sikaria shared, highlighting how India is unique in its mobile friendliness.

    Sharing some data the eCommerce platform has gathered from its own consumer research and data and analysis of consumer behaviour on the platform, around 50 per cent of the time spent on mobile is used for communication.  According to the consumer pattern gathered from traffic on Flipkart’s mobile app and its  web usage analysis, Sikaria inferred that usually customers try the mobile app first, and once they are convinced with the services and have grown loyalty towards the brand, they move to web. This places mobile marketing as the supreme most important requirement for a brand that functions mostly digitally, as it introduces the service to new consumers.

    “We have also noticed that across metrics there is better customer engagement and better customer experience on mobile from how much time consumers spend on the site per visit, to how many successful transactions they complete per visit,” Sikaria shared.

    As per Sikaria, once the user has jumped the hurdle of downloading the app the engagement is far higher on mobile than on other medium like desktop, provided the app is designed conveniently for them. That is the reason every ecommerce site, every travel startup or web based business wants their app to by in everyone’s phones.

    It is to be noted that between the four to five major eCommerce players in the country, television media raised about Rs 1,200 crores in advertising revenue in a single quarter, albeit it was before Diwali last year.

    Now with a key player such as Flipkart thinking mobile first, should television advertisement slot seller be worried about the smaller screen stealing away the advertisers which are native to the medium? 

  • Ad agencies globally turning to video and digital formats

    Ad agencies globally turning to video and digital formats

    NEW DELHI: Around 48.3 per cent of ad agencies have said a majority of their RFPs (requests for proposal) included a video ad component in 2014, as against 38.1 per cent in 2013 and 30.2 per cent in 2012. The findings are part of a  survey by BrightRoll which claims that online video ads are becoming mainstream.

     

    Agencies are turning to online video because they believe in its effectiveness. The survey found that 72 per cent believe that online video advertising is as or more effective than TV spots. Just 18 per cent see online video ads as less effective.

     

    BrightRoll also found that 22 per cent of agencies plan to devote the majority of their digital video budgets to programmatic ad buys in the next 12 month – up from six per cent in last year’s survey.

     

    “Programmatic video is going mainstream with agencies because it has proven to be effective in shifting consumer perception. Agencies told us they are investing with confidence, measuring consumer behaviour directly, and effectively engaging audiences across screens using programmatic video,” says BrightRoll vice president global marketing Guy Yalif.

     

    The most important metrics for ad agencies are completed views (20 per cent), conversion (18 per cent), and brand lift (17 per cent). Click-through rates, once seen as key, are now less important, coming in fifth.

     

    With mobile video viewing on the rise, so is mobile video ad spending: 79 per cent of respondents were likely or very likely to devote some of their video ad budgets to tablets, a rise from 68 per cent in 2014.

     

    Meanwhile, another study shows around 28 per cent of marketers have reduced their advertising budget to fund more digital marketing.

     

    In 2015, search engine marketing (SEM) will continue to capture the largest share of online spend at 47 per cent, or about 14 per cent of the firm’s total marketing budget 2014.

     

    Worldwide social network ad spending reached $16.10 billion in 2014, a 45.3 per cent increase from 2013 that pushed social’s share of overall digital ad investment to 11.5 per cent. Combined social network ad dollars from North America, Western Europe and Asia-Pacific represented 93.7 per cent of global expenditure.

     

    Spending on paid media in the US totaled $179.80 billion in 2014. Digital accounted for 28.2 per cent of total ad investments, with 10.6 per cent going toward mobile. Digital ad spending rose 17.7 per cent in 2014 and will rise another 15.5 per cent in 2015, fueled by mobile.

     

    Digital ads will lead the way for global media growth in the next four years, accounting for 33 per cent of total advertising revenue, nearly catching TV in the process. TV advertising will generate $173.7 billion worldwide in 2014 and grow to $214.7 billion in 2018. During the same period, Internet advertising will grow from $133 billion to $194.5 billion.

     

    Total entertainment and media spending on digital services is forecast to grow at a 12.2 per cent compound annual growth rate (CAGR) between 2013 and 2018 and account for 65 per cent of global entertainment and media spending growth, excluding spending on Internet access.

     

    By 2018, Internet advertising will be poised to overtake TV as the largest advertising segment. As recently as 2009, Internet advertising revenue was $58.7 billion and TV advertising revenue was more than twice as big at $132 billion. But Internet advertising revenue will rise at a 10.7 per cent CAGR to reach $194.5 billion in 2018, just $20 billion behind TV advertising.

     

    Two-thirds of revenue growth from consumers and advertising will be digital. Of the $241 billion growth in total entertainment and media consumer and advertising revenue from 2013 to 2018, $157 billion will come from digital sources.

     

    Marketers spent $4.4 billion on mobile advertising in the US in 2012. That figure doubled to $8.5 million in 2013; and that figure is projected to quadruple to $31.1 billion by 2017. Search advertising accounts for about half of the total.

     

    Just one per cent of all US advertising spending is on mobile platforms, compared to 43 per cent for TV and 29 per cent for print.

     

    More than 40 per cent of US marketing professionals said they increased spending on data-driven marketing in the first quarter of this year, compared with 38.4 per cent who said the same in Q4 2013. More than 40 per cent of US marketing professionals said they increased spending on data-driven marketing in the first quarter of this year, compared with 38.4 per cent who said the same in Q4 2013.

     

    Digital marketers spend almost as much to keep buyers (45 per cent) as they do to gain new ones (55 per cent).

     

    Meanwhile, US marketers spend an average of 2.5 per cent of their total company revenue on digital marketing activities, according to a new report by Gartner Inc. US marketers spend an average of 2.5 per cent of their total company revenue on digital marketing activities, according to a new report by Gartner Inc.

     

    According to Duke University’s CMO Survey, digital marketing spending is forecast to grow by 10.2 per cent, a slower rate than the 11.5% increase forecast in August 2012, but a healthy rate nonetheless.

  • Facebook says 48% of daily active users and 49% of ad revenue come from mobile

    Facebook says 48% of daily active users and 49% of ad revenue come from mobile

    NEW DELHI: Facebook has claimed that mobile ad revenues and usage will soon outperform desktop ad revenues and usage.

    In its third quarterly earnings press meet, Facebook co-founder and CEO Zuckerberg said 48 per cent of its daily active users only use mobile devices while 49 per cent of its total ad revenues come from mobile ads.

    Zuckerberg said Facebook ads raked in nearly $890 million in revenues during the third quarter through the company’s app install ads, mobile engagement ads, and so on.

    The announcement means the company is heading in the right direction to meet its Q2 prediction that mobile ad revenues will surpass desktop ad revenues by year-end.

    Facebook mobile MAUs gained 45 per cent more than last past year, from 604 million MAUs in Q2 2012 to 874 million MAUs in Q3 2013.

     

    Facebook mobile MAUs include Facebook users who only use mobile devices and mobile users who occasionally use desktop devices to access Facebook services.

     

    The 45 per cent statistic for mobile MAUs had more than twice as much growth as overall MAUs, up 18 per cent from $1.007 million in Q2 2013 to $1.189 million in Q3 2013.

     

    Facebook remarked that its statistical figures exclude usage from Instagram-only users, but Facebook COO Sheryl Sandberg delivered figures on the length of time consumers spend on Facebook’s mobile platform if combined with the photo-based social network.

     

    Sandberg said Facebook and Instagram accounts for a combined 20 per cent of total time spent on mobile devices and 12.5 per cent of total time spent on desktop devices every month in the US.

     

    Sandberg noted that Facebook accounts for more mobile minutes in the US than the combined minutes of YouTube, Twitter, LinkedIn, Pinterest, Snapchat, Pandora, Yahoo, Tumblr, and AOL, even though comScore research results suggest it may have included Instagram data.

     

    Facebook noted that MAUs only access the company’s services through mobile devices is at 254 million

     

    With a total of 1.19 billion Facebook MAUs, the company grew 2.3 per cent of MAUs that only use mobile devices to access it, from 19 per cent in Q2 2013 to 21.3 per cent in Q3 2013.

     

    According to the latest figures, Facebook mobile DAUs across the world are up by 38 million from Q2 2013, whereas MAUs are up by 55 million from the same period.