Mobile Advertising and Shift in Media Spend

Most of the time we’re seeing that the media interactions are now through mobile and tablet devices.

These devices have changed the landscape completely. What it’s done is create a device that’s completely connected to the customer at all times. Now the customer has 100% choice.

I don’t have to watch Home and Away at 7 o’clock – I can go on Netflix, and watch my TV series that I like at 19:48, go to the toilet, and come back and play again, go have something to eat, and then come back whenever.

It’s my choice, and 90% of the time we’re seeing that the media interactions that you know are through this device.

We know that this is happening, but what does that mean in terms of a business and their marketing spend?

Below is the reality of what we see right now.

These are stats that can be found online, but unfortunately, marketers look at these stats and prefer to ignore them; they don’t want to face them.

It’s reality though, and we see this every day.

We’ve worked with companies that have big budgets spent on traditional advertising. These companies are used to delivering marketing campaigns over TV, radio and press. After being shown these statistics and the benefits, within three to six months they’ve chopped those budgets and moved almost everything over to digital.

The trend was 34% in 2014, with it shifting towards 50% by 2018. Development of assets, display advertising on Facebook, Google and other forms of media, AdWords and other tracking – putting that all together is expected to cover half of a campaign’s budget by the end of next year.

Believe it or not, there’re a lot of businesses not recognising this, and aren’t even allocating 10% of their budget into digital and online marketing.

The shift towards digital is projected to increase even further in 2018.

What does this mean for traditional advertising though? It means that they’ll get less of the pie.

For any companies still not allocating their budget towards digital, it’s time to start thinking intuitively, as the trend towards digital only looks to increase.

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