Why people should advertise digital (part 3)

Reason 3: We must use digital because it represents innovation, and Innovation is our responsibility.

I believe as business professionals, we have the responsibility to connect the past with the future. This is done through investing in innovation.

Until 1879, the lamp was the source of fuel for lighting in the global community. It was costly and very dangerous. However, Thomas Edison innovated a path for society to have a more affordable and greater quality lighting, that revolutionized into a new industry – the the incandescent light bulb.

Until 1876, letters were means of communication for those in the local community, with an exception of the telegraph. However, Alexander Graham Bell innovated a path for society by revolutionizing how individuals communicated – through the telephone.

Ideas, Discoveries, and Inventions are the results of Innovation.

I believe it is important to advertise digital, because it is currently at the pinnacle of innovation, and will help us bridge our way into the next great big thing.

 

 

Why people should advertise digital (part 2)

Reason 2: We should advertise digital because it adapts to the lives of people and enhances the quality of life (consumer)

According to Digital Trends, the average time spent on the phone in America is 4.7 hours. Yext’s GeoMarketing analyzed that adults (those over 18) have an average spend of 3.18 hours per day. Initially, with the average time spent sleeping being 8.1 – 8.3 hours, this statistic can be said that the average American spends 30% a day on the phone!

Whether this is good or bad for the individual is another issue, but the fact is that mobile advertisement is a method of digital ad that is unquestionably going to be a part of a person’s day…or even life.

Through advertising digitally, the mobile division alone can intact approximately 30% of a person’s daily life.

According to eMarketer, the mobile internet ad spending is projected to drive digital media’s gains throughout the forecast period. In 2016, mobile will (for the first time) account for over half of digital ad investments and nearly 20% of total ad spending. By 2020, mobile’s share will climb to 73.7% of digital, which is equivalent to 34.2% of total media ad investment.

In conclusion, the world has been digitized – and digital (mobile, PC, etc…) has become a part of the everyday life. Thus, to advertise through a medium that takes a huge sum of an people’s life will enable society to gain substantial exposure to information – enriching the standard of life.

 

 

 – Some cool sources that I got my info from! –

http://www.pwc.com/gx/en/industries/entertainment-media/outlook/segment-insights/internet-advertising.html

Click to access outlook-internet-advertising-2016.pdf

https://www.iab.com/news/global-digital-advertising-revenue-reports/

Global digital ad spend to hit $285bn by 2020

Why people should advertise digital (part 1)

This is a three part article that explains my personal reasons why people should advertise with digital from the shoe of investors, consumers and ethics! Hope you like it!

Reason 1: Growth & Results – We should advertise with digital, because it is a method that is growing in demand and producing strong results.

– Growth –

According to eMarketer, the global ad spending is projected to increase faster than previously expected, with a 7.2% growth in 2016 which sums to $550.51 billion. The source additionally credits the rise largely due to increased digital advertising activity, as well as greater spending related to the US presidential election and Summer Olympics in Rio.

• eMarketer projected growth rate between 5 – 9% each year with total spending forecast to $724.06 billion in 2020 – this rise is mainly derived from the strong demand in digital advertising (heavily mobile).
• The top five advertising market countries are…
  • US
  • China
  • Japan
  • UK
  • Germany
• The above 5 will continue to remain dominant in the forecast years, with US covering $196 billion in total media ad spending this year (36% of the global total).

According to Forbes‘ results pulled from eMarketer, U.S. digital ad spending will reach $83 billion in 2017, representing an increase of 16% from 2016 ($71.55 billion), according to consultancy eMarketer’s latest forecast

• Digital ad spending (includes mobile) will increase 20.3% and reach $194.60 billion in 2016 – summing to 35.3% of total media spending.
• By 2020, digital spending will pass $335 billion, representing over 46% of total media ad investment.
• For the year 2016, mobile ads will account for more than half of the digital ad investment, and almost 20% of total ad spending.

 

– Results –

According to IAB’s annual and HY (half-year) reports conducted by PwC, below are few interesting points that depict the results of digital advertising. (IAB PwC 2015 Report)

In FY 2015, revenue from internet advertising increased 20.4% in the US, totaling $17.4 billion in fourth quarter of 2015 – 18..3% increase from third quarter of $14.7 billion and an increase of 22.8% from the previous year (2014) fourth quarter revenue which was at $14.2 billion.

The total internet advertising revenue summed to 59.6 billion , up 20.4% from the 49.5 billion in 2014.

Additionally, according to the 2016 HY IAB report from PwC, the HY revenue for 2016 was $32.74 billion from $27.48 billion in HY 2015 (19.1% increase).

 

 

Thus, growth in the demand and it’s unparalleled results are undoubtedly a reason why people should advertise with digital.

Technology is gaining grounds in the Marketing Department (part 1)

The Mobile Era

Utilization of digital applications, web/internet, and other innovative technology has been a growing phenomenon in the marketing department. I personally had the opportunity to experience a summer of paid digital marketing internship in a firm called Exidea (http://exidea.co.jp/) in Tokyo, Japan from June-August 2015, and can vouch (for what its worth) the increase in demand for further implementation of “tech” in the marketing field is unparalleled.

 

 

 

Being taught the importance of digital marketing by Tim Goudie(left) at the Click Z Live event in Central Hong Kong

Tim Goudie: Social Media Director, Sustainability for the Coca Cola Company

 

 

 

*This article will be a 3 part article.

Important Vocabularies

1. Tech-In this article, tech will be the short term for technology. This term will infer to modern methods, innovative creativity and actual technology. (i.e. internet, mobile smart phone, web design application)

Abstract Introduction

Part 1 will be the informative introduction to marketing. This section will establish the fact that marketing is currently undergoing significant growth/innovation through the integration of technology. Part 1 will institute in detail the standard of norm for modern marketing as well as introduce research results on to what extent “Marketing” has accumulated growth in the category of tech marketing.

Part 1

$15 BILLION. According to the IAB, the 3rd Quarter revenue for U.S. internet advertising  as of December 10, 2015 was at a record breaking $15 billion USD. This is the highest recorded quarter ever and the figure marks a significant 23% uptick over the Q3 from 2014 which was at $12.2 billion USD.

To better put this sum to perspective, Jannet Fowler’s article on Investopedia in 2012 serves as an interesting source. Fowler shared with the readers 7 companies that were predominant in their marketing image and the budget each company spent respectively (all in the billions) in advertisement for the year 2011.

1. Procter&Gamble:     $2.95 billion
2. L’Oreal:                       $1.34 billion
3. General Motors:       $1.78 billion
4. Chrysler:                     $1.19 billion
5. Verizon:                       $1.64 billion
6. Time Warner:            $1.28 billion
7. Pfizer:                          $1.2 billion

This sums up to $11.38 billion, which is still nearly $4 billion short of what was spent on internet advertisement just 4 years later!

As evident in above case, tech has gained (and is continuing to grow as) substantial priority to marketer on a globally dynamic spectrum.

The most basic component of this tech marketing is the internet. The internet is arguably mankind’s greatest innovation in the 21st century. The phenomenon in the rise of online shopping web entities such as Amazon.com and Ebay.com signifies the role of internet in modern marketing. Online shopping sales total has also increased annually and in 2015 the total sales has reached +$300 billion. The internet is not just a new dimension to mankind anymore. It has become a part of a consumer’s daily life and is the foundation of successful marketing.

A statistical argument often heard during this topic (online vs in-store shopping), is the fact that a significant percentage of consumers still purchase merchandise in a physical store. *PricewaterhouseCoopers also publicized a research result that supported this argument by recording that compared to 40% of consumers who purchase in store, only 27% of consumers purchase online. However, nearly 75% of those surveyed (19,000 consumers worldwide) by PwC also claimed that the online marketing lead to the purchase in store. **eMarketer also projected that consumers worldwide will spend a total of nearly $1.672 trillion in online transaction. This figure represents approximately 7% of overall global retail sales, which is projected to be $22.822 trillion. Additionally, eMarketer projects online purchase to increase by over double to $3.551 trillion, a revenue of +12% of total retail sales of (projected) $28.55 trillion, through the increased access to the online world.

*PricewaterhouseCoopers is a multinational professional services network headquartered in London, United Kingdom. It is the largest professional services firm in the world, and is one of the Big Four auditors, along with Deloitte, EY and KPMG.

**eMarketer is an independent market research company that provides insights and trends related to digital marketing, media and commerce. eMarketer, founded in 1996, is located in New York, NY. Its clients include two-thirds of Fortune 500 companies.

Two essential modern marketing (message) receiver tool (message receiver) is the Personal Computer and tablets/smart phones. These two items revolutionized marketing on multiple levels. ***Foundation Capital estimates that the spending budget on tech marketing will reach $120 billion in investment. Many fintech applications as well as mobile based market tools have revolutionized the way of business. Airbnb and Uber are recent examples that incorporate the new mobile dimension to connect business and clients on a personal level. Both application allows for any individual to sign up to be qualified as an employee to generate revenue. The system of how business is conducted is unique, but through the integration of technology in modern marketing has allowed for such businesses to experience a revolutionary success.

***Foundation Capital is a venture capital firm located in Silicon Valley. The firm was founded in 1995, and manages more than $2.4 billion in investment capital.

Social media is also a critical factor in the tech market game.While only 4% of U.S. consumers purchased items via social media, statistics show that 36% (over 1/3) credited the interaction with brands on social media as the decision factor into purchase.

While there this is an excerpt of the research results on how much impact technology has on modern marketing, it suffices as adequate proof for the argument. I hope that Part 1 was able to establish the importance of tech marketing as well as to what caliber this innovative method of marketing has grown into .

References

Clancy, H. (2015, October 07). 5 reasons marketing tech spending will reach $120 billion by 2025. Retrieved April 11, 2016, from http://fortune.com/2015/10/07/marketing-technology-budgets/?iid=sr-link1

Hykan, S. (2016, March 26). Five Marketing Lessons From MarTech 2016: Where Marketing And Technology Collide. Retrieved April 11, 2016, from http://www.forbes.com/sites/shephyken/2016/03/26/five-marketing-lessons-from-martech-2016-where-marketing-and-technology-collide/#538ccb736028

Fowler, J. (2012, June 11). 7 Companies With Big Advertising Budgets | Investopedia. Retrieved April 11, 2016, from http://www.investopedia.com/financial-edge/0612/7-companies-with-big-advertising-budgets.aspx

Smith, J. (2015, December 29). Here’s how marketers are using different mobile technologies to reach consumers. Retrieved April 11, 2016, from http://www.businessinsider.com/the-mobile-marketing-report-how-marketers-are-reaching-consumers

Young, Sarah. “Mobile Technology and Targeted Marketing Barge in on Holidays.” Business Insider. Business Insider, Inc, 02 Nov. 2015. Web. 11 Apr. 2016.