Outsell, Inc., the research firm for media, information and technology, just released the results of its 11th annual Advertising and Marketing Study. According to the research, ad spend is set to grow 4.7% to $473bn this year with digital representing almost half of all spending, increasing 12.5% to $228bn. Mobile features as one of the strongest sectors, up 38% to $23bn.
Mobile ad spend increases 38% in 2016
The study, based on the answers from 1,500 US marketers, also found that advertisers are increasingly focused on the consumer experience and are exploring ways to optimise and personalise it using creative content for cross-channel campaigns.
However, marketers continue to push products instead of solutions, whilst millennial marketers are finding it hard to apply advanced analytics on top of growing amounts of data.
Randy Giusto, Outsell’s Vice-President and Lead Analyst for Media, Advertising and Marketing Research, explains:
“CMOs continue to drown in data as they accelerate their advertising and marketing efforts and demand cross-channel attribution capabilities. New forms of mobile, video, and social advertising present new forms of creative and content, as well as new data streams with which to analyze and act upon on.”
Mobile and social ad spend will be among the strongest gainers this year. According to the respondents, Facebook scores strongly when it comes to strengthening B2C brands, whilst consumer-facing marketers rated Facebook, YouTube and Twitter highest for mobile ad effectiveness. LinkedIn led among the B2B marketers. Over the next three years, millennial marketers are projected to drive higher levels of mobile advertising through programmatic.
“New ad formats and the increasing use of video, as well as the emergence of big social brands as news and information curation and distribution hubs offers new choices to advertisers and marketers in 2016. All things considered, it’s all about attribution, connecting an actual sale back to the marketing touchpoints along the customer journey to justify the spend.”