Advertising Insights: Make Your Effort, Money Count

By Kyle Graden

Picture this: it’s a hot summer day and you are gearing up for a barbecue. Would you want to serve mostly meat if the majority of the people coming are vegetarian? Obviously not, since you want to buy the food that is going to be eaten. The same goes for deciding where to put your ad dollars, since you want to spend your efforts on the channels that your consumers are spending time on and will see your ad.

The chart below, which is part of an amazing annual review of internet facts and projections by Mary Meeker at KCPB, gives you a breakdown how ad spend matched up to consumer time spent in 2014. There is a large gap between time spent in media and advertising spend on those channels. Of the $50 billion of internet ad spend in the US in 2014, just $13 billion was on mobile, representing 8 percent of total ad dollars. However, 24 percent of consumer time spent in media was on mobile. Ad dollars should follow where time is spent by consumers, so there is a $25 billion opportunity to shift ad spend to mobile.

In addition to choosing in what channel to place your ad, the ad format is also important for engagement. The next graphic comes from a report by FreeWheel that explores trends in the digital video landscape. Intuitively, the ad completion rate for mid-roll video ads is 94 percent, since a viewer will watch this ad unit to view the rest of the content. Less intuitive, however, is that pre-roll video ads and post-roll video ads have nearly the same ad completion rates, at 73% and 72% respectively. As you experiment with video, it is important to continually test your ad units and focus on video units which your customers are actually willing to watch. Facebook provides highly granular data for video ads including the percent of the video viewed of your ad recipient at the 25 percent, 50 percent, 75 percent, 95 percent, and 100 percent intervals, and then allows you to target your audiences based on their engagement with your video content.

The final insight for this week shows an industry breakdown of where internet users in France see digital brand content. This table by eMarketer compares the percent of respondents that indicated either paid, owned, or earned media as the primary place consumers see a brand for each major vertical. Paid media has the largest share of respondents for every industry except Specialty Stores, and so advertising is the primary way consumers in France see your content, so ads are a key way to reach your audience.

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