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Smart Money is in Digital Ads, Where is Yours?

When consumers embark on their journey, we know that they use multiple channels to get information. Of all the touch points in a typical journey, display ads are a major contributor to conversion. As spend increases, and customers’ behavior changes, we’re seeing digital ads pushing better and better results.

The real magic here is that digital ads boost results across the board. As an example, take a look at the BrandScience and Microsoft econometrics study. They wanted to figure out how online advertising influences behavior. The study found that digital ads perform very well when taken as a sole channel. Combined with other media spend, they can lift ROI by up to 70 per cent.

US digital ad spend

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Now is the Time

In 2016, US digital ad spend will surpass spend on search advertising. This is a big deal for marketers, because it’s the first time that digital ads will come out on top, with the estimated spend being more than $32 billion total. This huge figure is set to increase to over $46 billion by 2019.

We already know that paid media and digital ads are a major factor in the buyer’s journey. They support brand discovery, encourage repeat visitors from partner websites, and reinforce the brand message you’re cultivating. Now that we also know that digital ads boost results holistically, we can look more closely at the proof.

Digital Advertising: Facts and Figures

Display advertising is a very effective way to drive traffic. Display ads across all formats result in an average 0.6 per cent CTRGlobally, we’re going to see increasing shifts towards campaigns that focus on digital. Multinational companies like Procter & Gamble invest huge amounts of money in this space. Investment of 30-40 per cent of a marketing budget is fairly typical, and reflects the overall interest of bigger brands in boosting overall results in a campaign.

In fact, 57 per cent of CMOs expect budgets to increase over the next two to three years.

Looking specifically at mobile, spend on mobile search is expected to increase from $13.6 billion in 2015 to $18.5 billion in 2016. And if we look at US spend on banners, rich media, sponsorships and other display formats, a massive 77.5 per cent – $17.5 billion – will target individuals on mobiles and tablets.

The proof is there, and it’s compelling. But there’s one more piece in this puzzle.

Honing Digital Ads

When it comes to digital ads, the amount you invest is going to dictate your results. But focus is just as important, and 2016 is the year we’re going to see an uplift in ROI via more targeted advertising strategies.

Coming up with effective ad strategies is not easy, and there’s an ongoing question mark around ad blockers and other tools that can disrupt planned trajectory. Brands are struggling to leverage the market on their own. But with the right support from a capable agency, any business can navigate this complex terrain.

Position2 is well placed to deliver the strategy you need to make the most of your digital ad spend. We have our finger on the pulse, and we know which metrics to measure. We know how, and when, to target your audience.

Seeking an integrated digital media strategy? You found your perfect partner. Contact us for advice today, and subscribe to our blog for more updates.

Team Position2

January 22, 2016

By Team Position2