Industry Quick Links for the week of April 8:
Magna reports that over-the-top ad revenue reached $2.7 billion last year, representing 54% year-on-year growth, and, combined with paid search growth of 23% to nearly $54 billion, pushed 2018 ad sales to a record $212 billion. The company expects 2019 to be another record year with projected total ad spend of $217 billion.
Some 27% of Gen Z consumers always share recommendations or reviews following purchases while 37% do so most of the time, and almost 69% “very often” search for reviews and recommendations of items they’re considering buying, per an infographic from Social Media Link. More than 85% most trust recommendations from friends and family, followed by online reviews at just over 76% and social followers at 62%.
With reduced online latency and improved device connectivity, 5G technology will have a varied impact on marketing and advertising, writes Vandita Grover. She points to a variety of trends for marketers to prepare for, including the proliferation of interactive ads, IoT opportunities, increased personalization, usage of voice assistants and the standardization of augmented reality.
The majority of Americans believe that social media platforms such as Twitter and Facebook do more harm than good in the US, and most don’t believe Facebook will reliably safeguard their personal data, a poll conducted by Hart Research Associates and Public Opinion Strategies shows. More than half of respondents said that social media wastes time, helps spread unwarranted attacks, divides the country and contributes to the dissemination of false information.
As the streaming wars heat up with a proliferation of industry players and viewers, advertisers are following suit and allocating more of their budgets to over-the-top media. “We know that a growing percentage of ad impressions are being generated by people consuming through connected TVs,” said Magna Global’s Vincent Letang, who pointed to increasing ad sales of OTT providers such as Roku and the growth of ad formats that are only viewable in OTT environments such as connected TVs.
Research from Magid has found that content employing virtual reality drives emotional connections with viewers, and that consumers associate VR with words like “exciting,” “escape” and “immersive.” The study also reveals that consumers connect augmented reality content with learning opportunities and that both types can boost positive brand perception if used in meaningful experiences.
Snapchat is expected to have 77.5 million monthly US users, down 2.8% from 2018, according to eMarketer estimates, representing the first year of stalled growth for the platform. Snapchat’s share of US social network users is predicted to decrease from about 40% in 2018 to just under 38% this year, and is attributed to its 2017 redesign that resulted in user backlash.