Is your spending in each media category aligned with your marketing goals? Whether it’s awareness, revenue, or conversions you’re after (or all three!), it’s important to consider this question.
Regardless of your answer to the above, digital marketers in all verticals normally share similar goals- acquiring and retaining quality customers, donors, students, or other audiences, and building trust in the marketplace. In order to achieve these goals, and regardless of your industry, it’s important to reach your audience members in the digital environments where they are already consuming media.
Media Consumption Trends & The Rise (and victory!) of Digital Media
Since 2010, the average person in the US has increased their time spent with digital media by 59% (eMarketer). Both younger audiences and educated, affluent audiences regularly consume media across multiple channels and even devices for approximately 724 minutes every day. Your audience is likely also comprised of digital omnivores, meaning they regularly use two or more connected devices to connect to the internet. Since 2010, the average time spent with traditional media channels, like TV (-11%), radio (-33%), and print (-76%) has hit an all-time low. Meanwhile, media consumption in the digital channels like video, mobile, and social media continue to grow both rapidly and organically. People are still consuming print, TV, and radio – they’re just consuming it in digital environments.
Cutting the Cord
So, why the mass exodus from cable? As a digital marketer, It’s critical to acknowledge the “cord cutting,” trend, which happens when a user eliminates all traditional/cable TV subscriptions.
According to a recent study by the Consumer Technology Association, 11% of survey respondents said they had canceled their cable TV service in the last year, and 21% said they hadn’t had a traditional TV subscription in over a year! Aside from this cord-cutting, younger demographic groups like Millennials can be particularly difficult to reach through traditional TV/cable channels. In fact, a large majority of them are said to be “cord nevers” – individuals who have never subscribed to a traditional cable TV service.
Show, Don’t Tell – Why Digital Video is Surpassing TV
In the US alone, people watch approximately an hour and fifteen minutes of digital video every day. If that doesn’t seem like very much, consider that in 2011, the average person only spent 20 minutes watching digital video – that’s a 275% increase in just 4 years, and almost 70% year over year!
Video is engaging, measurable, and therefore more cost-effective than traditional TV buys. With TV, you have to buy an entire audience to reach your target audience, even if many of the audience members will never be interested in your product or service.
With digital video, you can track conversions and offer more targeted messages to the proper audience, as opposed to “mass blasting” an entire market to reach the people you want. You’ll also steer clear of the growing concerns raised by cord cutting. In addition, a growing proportion of video consumption can be attributed to the rise in mobile device use, with nearly a third of all digital video being watched on mobile devices.
Don’t Miss Out On Mobile
It turns out that people like to watch video on mobile devices, but people like to access social media on their mobile devices even more. In fact, people spend more time on their phones using Facebook than on any other mobile site, visiting their mobile Newsfeed approximately 14 times a day!
By 2019, the mobile category will account for 72% of digital ad spend in the United States and nearly 30% of total media spend. 2016 marks the first year that mobile spend will surpass spend for desktop-based advertising. Are you ready?
The love of mobile is also responsible for the formulation of “second screen behaviors,” or the rise of the digital omnivore. These cross-device behaviors, which were not measurable until very recently, can now be tracked more accurately with technologies like Cross-Device Measurement timestamps, and user or purchase IDs. Analytics from these reporting technologies show substantial conversion lifts when mobile touch points can be tracked and analyzed. For many marketers, this concretely confirms the importance of a mobile marketing strategy.
What About Display and Search?
Display advertising continues to be a foundational piece of a digital media mix. According to eMarketer, this year digital display advertising categories will account for 50% of all digital ad spending, up 23% from 2015.
Digital marketers are investing more in the banner category specifically, and typically budget one out of every five dollars on banner ad units. In 2016, up to 75% of all display spend will be allocated to mobile or mobile-ready environments.
Well… What Are Others Doing?
Smart digital marketers are doing what will keep their campaigns thriving.
As your audience moves around the digital space, your messaging should too. If you aren’t reaching your audience in digital environments, you’re simply missing the opportunity to reach people where they actually consume media!
It’s estimated that this year, most organizations will allocate approximately 30% of their marketing budget to online marketing methods. By 2019, this rate is expected to grow to 35%!
It’s really pretty simple – your audience is online, and will continue to increase non-traditional media consumption throughout 2016.
So – Is your marketing mix ready? To learn more about planning a media mix that works for your organization, watch this live webinar recording hosted by Mogo’s CEO Doug Mowbray:
Webinar Recording: Media Mix Planning For 2016 and Beyond: What You Need to Know Now