Digital Advertising Statistics | Why You Need to Advertise Online
We have put together a list of the top online advertising statistics to help you spend your advertising budget where it matters.
The world of online marketing has expanded far beyond paid advertising.
Digital advertising is the top of the “new advertising stack,” and it’s what can create brand awareness, drive sales, and create visibility across a variety of channels filled with businesses trying to stand out. It has proven to be extremely profitable both for small, medium and large businesses.
Even though there are many new players in the online marketing landscape like email, social media, and reputation; digital advertising isn’t set to slow down yet.
Digital Advertising Statistics
1. Digital ad spend is set to grow from £83 billion this year to £129+ billion by 2021
2. Google and Facebook are set to rake in 63.1% of digital ad spend in 2017
3. Google has +20% y/y advertising revenue growth, Facebook has +62% y/y growth
4. 39% of marketers list search engine marketing as their top business priority for 2017
5. Marketers that invest over 10% of their budgets on measurement are three times more likely to beat their sales targets by 25% or more
6. 56% of advertising use engagement to measure success, 21% use conversion & revenue
7. 34% of social media marketers list “tying social campaigns to business goals” as a top challenge
Video Advertising Statistics
8. 2017’s video advertising spend is £13.23 billion, and projected to reach £22.18 billion by 2021
9. 68% of consumers feel positively about watching video ads for mobile app rewards
10. 52% of marketers believe that video is effective for brand awareness
11. Online shoppers who view demo videos are 1.81x more likely to purchase than non-viewers
12. 51.9% of marketing professionals worldwide name video as the type of content with the best ROI
13. According to retailers, video can account for a 40% increase in purchases
14. Mobile shoppers are 3x as likely to watch a video than desktop shoppers
15. 46% of users act after viewing an ad
16. 80% of consumers remember a video ad they viewed in the past 30 days
17. Combining video with full-page ads boosts engagement by 22%
18. Ecommerce sellers find that using product videos increases product purchases by 144%
19. Video ad completion rate for videos 15 seconds long is 93-95%, with 30 second videos seeing a completion rate of 92-93%
20. Over half of video advertising is viewed on mobile
Mobile Advertising Statistics
21. Americans spend 71% of their online time on mobile, with Canada and the UK coming in at 62% and 61% respectively
22. Average smartphone conversion rates are up by 64%
23. Mobile advertising accounts for £37 billion of the £73 billion total ad spend (51%)
24. 81% of consumers feel negatively about mobile add pop-ups
25. Mobile accounts for 60% of click share on Google Search ads, compared to desktop’s 32%
26. Search ad spending on mobile is set to rise by 25% in 2017
Social Media Advertising Statistics
27. 70% of advertisers plan to increase their mobile social advertising budget in 2017
28. 26% of Facebook Users that click ads make a purchase
29. Images account for 75-90% of Facebook advertising effectivity/performance
30. The best headline length for a Facebook ad is four words, with 15 for the description.
Sources: DMB Adobe, 2017 | Smart Insights, 2017 | KPCB, 2017 | Digital Marketing Depot, 2017 | eMarketer, 2017 | CMS Report | WordStream, 2017 | Small Biz Trends, 2016 | WowMakers, 2016
Find out more about digital advertising and how it can help grow your business, book a consultation now.
How does online advertising help a local business grow?
Digital advertising consists of a range of services, all of which work to promote a business online. More and more businesses are increasing the amount that they spend on online advertising as we are now able to recognise that it increases awareness and leads—it’s that simple.
With traditional media channels, quite often there is no way of tracking the effectiveness or success of an advertisement in terms of advanced data analytics. However, with digital advertising, companies such as Google and Facebook grant users access to these advanced analytics. This way local businesses know that their money is being well spent and that the digital advertisements are positively impacting their storefront.
When determining the success of an ad, besides social media monitoring, the significant factors will differ case by case. However, the main indicators of the success of an ad lie in the indicators listed below.
ROI measures of a successful campaign:
- Impressions: the actual # of views on an advertisement
- Clicks: the actual # of direct clicks on the advertisement
- Engagements: Social & landing page clicks
- Results: In most cases, results come in the form of a phone call or a store visit.
Most effective places to advertise
Through our team’s extensive work in the digital advertising space, we have come to the same conclusion as pretty much every digital advertising company - that the best places to spend money on digital advertising are Google & Facebook.
With digital advertising, not only is a local business visible online, but they are visible to the right people online. Platforms such as Facebook and Google allow for advanced targeting, which puts a local business in front of consumers who are more likely to convert into a sale.
In fact, Google and Facebook accounted for roughly 60 percent of ad spend in 2017!
The Benefits of Advertising Your Business on Google
Google, the world’s largest network, is the most efficient way to tell people about your brand. The two main reasons are reach and flexibility.
Reach:
Consumers use Google every day to look for local businesses, resulting in approximately 3.5 billion Google searches every single day.
In this day and age, or computer age, people are no longer relying on TV commercials or radio ads to find a business or a service. They are mostly relying on Google.
Furthermore, Google integrated native Gmail ads with Google AdWords in 2015 and made it available to all advertisers. This means that you can reach prospects using their Gmail inbox.
For these reasons, it is indispensable to adopt Google’s network capabilities to allow your business to get instant visibility from users looking for your services.
Flexibility:
Google allows the advertiser to spend whatever amount of money they want on advertisements, whenever they want. Thanks to these flexible options, advertisers are able to test what works and what doesn’t work for their business. Spend a bit, wait to see how your campaign is performing, and then reinvest in larger budgets for greater prospect reach.
The Benefits of Advertising Your Business on Facebook
Facebook is one of the main forces dominating the modern-day society. But you already know this because you (like me) check your Facebook every day, multiple times a day, and so do potential customers. The benefits of advertising on Facebook can be summarised to 2 words: Audience and Targeting.
Choose your Audience:
Facebook is the fastest evolving marketing platform and communication channel.The audience on this social network includes 2.38 billion monthly active users (MAUs) on average, at an increase of 8% MAUs year-over-year.
Those statistics are simply too big to ignore, and as a local business, you need to understand the fact that Facebook is an intersection in which you can find prospective customers. If this hasn’t convinced you yet then let’s talk about how often social media is being used.
According to a study conducted by Zephoria Digital Marketing, the average person spends nearly 20 minutes every day on Facebook, highest-traffic occurring mid-week between 1 and 3 pm.
This means you have a short period to make your impression, so use it wisely!
Use the Powerful Facebook ad Targeting Strategy:
Firstly, how does Facebook Ad targeting work?
You can target a specific audience on Facebook with many different ad formats and ad targeting parameters. This is every marketer’s dream so get creative!
Facebook ad targeting allows you to focus on users so microscopically that you can basically become a bit of a digital stalker. You will be able to target users by their interests, life events, behaviours, age, gender, location, and anything else that their Facebook profile may reveal about them.
That Facebook algorithm has allowed massive changes to be made to the local advertising landscape and is now one of the best environments for businesses to get the word out about themselves.
Lastly, by leveraging these two platforms, Google and Facebook, businesses will be able to take their advertising game to the next level and begin to rake in new revenue with enough data to back their investment.
More: How to Reach Your Audience With Paid Advertising.
To find out more about how we can help grow your business, book a consultation now.