In the digital space, the release of Mary Meeker’s annual Internet Trends Study is the most auspicious event of the year. This year was no exception. In her section on advertising and monetization she showed how quickly mobile was growing, and how far it had to go. Along the way, she demonstrated the decline of desktop advertising as well. Moreover, she stressed how over-indexed print was in ad spending compared to its actual influence. This should be the final nail in the coffin for
print spending as companies get better data on their mobile customers and attempt to follow them and engage them to promote stronger buying patterns. There’s a $25+ billion opportunity to increase mobile ad spending in the United States alone, not to mention all the emerging markets like China, India, and Africa where the mobile phone is the only means of internet access.
Much of the mobile ad spend, 76%, is on video, the favorite format of Millennials — an elusive group constituting the largest segment of the work force. Millennials, we have already found out (yes, even Buzzfeed has noticed this) are not readers; of the 5.6 hours they spend every day on screens, the preponderance is watching video. To satisfy their demands, publishers have come up with special mobile video formats that are fast and engaging. Among the innovators in this space are Pinterest, Vessel, Google, Facebook, and, of course ZINC. Our publishers are getting higher CPMs for these, and their engagement rate is much higher than industry benchmarks. And for brands that want to foster internet commerce, there will be Buy buttons on the sites of many publishers, enabling consumers to make a purchase just at the moment of interest. We think this report, although long, is a must-read for brands and agencies, because it contains some of the best research available from someone who has been watching the internet since 1995. The full report is available either as slides or PDF.