Electronic advertising’ s opportunities & risks from Mary Meeker’ s Web Trends report

Marketing wasn’ t a major focus associated with Mary Meeker’ s Internet Trends report this year, but the well-known web analyst pointed out several interesting advancements that affect the sector. Here we all lay out some of the opportunities and problems that lie ahead for the electronic advertising ecosystem.

Possibilities

The time we invest in our connected devices keeps increasing. Daily digital media usage amongst adults now comes in at five. 9 hours, and the majority of that period is spent on mobile devices. We’ lso are hooked. In fact , mobile is the just medium that users increased period with compared to the previous year.

And yet with all the innovation within experience, formats and measurement, entrepreneurs are still underallocating ad dollars in order to mobile in relation to time spent. Customers spend 29 percent of their press time on mobile, while marketers only allocate 26 percent associated with budgets to mobile.

That gap has shrunk during the past few years, ago, but Meeker indicates there is still a $7 billion dollars opportunity for mobile media spend. That will also means mobile advertisements continue to come at a relative lower price . Print, TV and desktop computer ad spend all remain overindexed in relation to time spent.

What’ s missing from the graph above? Voice products. The number of devices set up in homes skyrocketed in 2017. And where scale goes, advertisement dollars follow.

Through goods and services to sell to apps/skills to build up, voice devices offer a new frontier for advertisers and marketers — and an opportunity to get the balance correct and learn from mistakes made online and mobile.

We’ re just starting to see the 1st iterations of ad formats along with Google Buying Actions , Google’ s despoliation into monetizing voice search on Search engines Home devices and Google Associate. That solution is priced on a cost-per-sale basis.

Meeker concentrated extensively on e-commerce in the survey this year (see our coverage of the key web commerce trends ), but in conditions of e-commerce-driven advertising, the behemoths still have more room to run. Amazon may be the most interesting to watch over the next year as the ad business is starting to pull off.

Citing Morgan Stanley research, the report indicated that will Amazon’ s ad revenue capped $4 billion in 2017, upward 42 percent year over calendar year. The company’ s ad systems, Amazon Marketing Services (AMS) plus Amazon Media Group (AMG), are poised for growth.

The question is whether Amazon will start to siphon ad budgets that currently visit Google and/or Facebook, or when the three ships will all continue to keep rise.

Threats

Now let’ s look at a few of the threats and challenges that sprang up through the report.

Artificial Intelligence (AI) now underpins most of the current innovation in marketing.   As consumers and new regulations prioritize privacy, there is the possibility of less data being open to fuel AI-powered personalization and marketing campaign optimizations.

Concerns regarding brand safety and the integrity associated with platforms in the era of artificial news, bots and offensive UGC has caused major advertisers in order to rethink their digital strategies. There’ s also the fact that the market can be dominated by two players — Amazon’ s ascendance as it provides advertising to its commerce system is of little comfort to the prefers of Snapchat, Pinterest and even marketers trying to scale their own ad companies.

Then there are macro trends. There is nothing like a comparison in order to 2008 to make you shudder:

The US is at near complete employment (as of today pegged just 3. 8%), but household financial debt is now higher than it was ahead of the excellent recession, driven by housing, student education loans and auto expenses. Personal financial savings rates are falling, and the debt-to-annual-income ratio is rising.

Meeker highlighted high and enhancing consumer confidence. Consumer confidence seemed to be high in 2007:

Zooming back into the particular advertising landscape, pricing increases plus higher costs to acquire new customers through advertising is causing marketers in order to rethink measurement.

Client lifetime value is the new metric of choice, according to a Salesforce study. To end on a positive note, 2017 can likely be looked back upon as the tail end of the prominence of last-click attribution.


About The Author

Ginny Marvin is Third Door Media’s Associate Editor, assisting with the daily editorial operations across all books and overseeing paid media insurance coverage. Ginny Marvin writes about compensated online marketing topics including paid research, paid social, display and retargeting for Search Engine Land and Advertising Land. With more than 15 years of advertising experience, Ginny has held each in-house and agency management opportunities. She can be found on Twitter because @ginnymarvin.

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