The multi-screen future: a new boost to digital adspend
As audiences continue to split their viewing between multiple screens, spend on digital advertising will continue to grow, writes YuMe’s Paul Lyonette.
Multi-screen viewing is now a way of life, with almost two-thirds (65%) of UK tablet owners using other devices while watching TV. This multi-screen browsing behaviour is accompanied by an expectation from consumers that the experience will be seamless as they navigate from tablet to mobile to desktop – challenging advertisers to rethink their tactics.
Reports on the 2013 digital adspend figures from both the UK Internet Advertising Bureau and the US Interactive Advertising Bureau illustrate how multi-screen viewing and mobile adoption is shifting advertisers’ focus towards digital advertising.
In the US, internet advertising revenues exceeded traditional TV broadcast advertising for the first time – reaching a value of almost $43 billion – indicating that advertisers are looking to spread their budgets between a wider variety of channels to capture audience attention rather than focusing just on TV.
This mirrors UK figures where online advertising spend outstripped that of TV back in 2009. Furthermore, in 2013, UK digital ad spend enjoyed a 15% year-on-year increase, bringing it to a total of £6.3 billion, while TV advertising spend lagged behind at £4.6 billion.
The reports also highlights that advertisers are not only rethinking the channels they use, but also adjusting ad formats to complement changing user behaviour. Growth of video adspend in the UK was rapid last year, seeing a 62% year-on-year uplift, with video now accounting for 18% of all online and mobile display advertising.
Video is also currently the fastest growing format for digital advertising in the US with recorded spend increasing 19% year-on-year to $2.8 billion – and this should continue as the number of smartphone video viewers in the US is predicted to reach 87 million this year.
As smartphone adoption continues to rise in both markets these figures will continue to grow as advertisers enjoy the high levels of engagement that video delivers compared to other ad formats.
Although mobile was the headline story of both reports – with ad revenue for mobile doubling year-on-year in both the UK and the US – a rise in tablet ownership is also a key driver of increased video ad spend.
Six in ten UK tablet owners (60%) now say it is the “go-to” device for surfing the internet at home and, as a result, tablet-specific advertising has grown by 400% year-on-year. This is great news for advertisers as the interactive touchscreen nature of tablet advertising drives high levels of consumer engagement, making it the perfect vehicle for increasing brand awareness.
The rise of multiscreen and the ‘always on’ consumer was a key trend for 2013 – and continues to be so in 2014 – and as audiences continue to split their viewing between multiple screens, spend on digital advertising will continue to grow.
Video is likely to be a major driver, not least because of the opportunity to consistently present a brand message, where one video creative can be served across multiple screens. Advertising campaigns now have the potential to capture the attention of audiences across multiple screens and, as video adoption continues to increase, we expect to see more exciting immersive campaigns – resulting in higher levels of brand engagement and investment.
Paul Lyonette is UK country Manager, YuMe.