Digital ad revenue has been on the rise for many years, but you may be surprised to learn that it now makes up 51% of all advertising dollars to the projected tune of more than $106 billion. This all-time high in 2018 is expected to eclipse traditional advertising channels by the end of the year, according to a recent study by Magna Advertising. Even more fascinating is that mobile advertising spending makes up nearly 2/3 of that spend while experiencing year-over-year growth rates of more than 30%. Any idea why organizations are moving further into the digital arena than ever before?
Growing Spend: Increasing Revenues
There’s a reason that businesses are pouring money into the digital advertising frontier. It’s producing results that are measurable, transparent and significant. There are widely-published results from Google showing that advertisers are seeing $2 in revenue for every $1 spent on AdWords campaigns. The power of that platform and the benefits of advertising on Facebook and other social media platforms is difficult to deny. Keep in mind that this is an average that includes managed Google AdWords accounts.
Google Adwords Results Continue to Improve
The average click-through rates for Google advertising is another data point that marketers need to know. Based on their industry benchmarks, the search network is netting a whopping average 3.17% CTR. See the full infographic from Marketing Profs, which includes Adwords campaigns run by over 11,000 advertisers in 2017. While real estate has the highest CTR at slightly over 7.5%, there are noticeable differences between campaigns that used machine learning and those that did not.
Omnichannel Continues to Drive Traffic
Even if your brand doesn’t sell online, omnichannel advertising is the key to driving in-store traffic. Businesses continue to see strong incremental store visits of over 75% that can be traced back to social, search and video advertising. With these stats, it’s little wonder that advertisers continue to flock to these reasonably-priced methods of gaining massive new swaths of audience members. Studies show that users spend up to one-third of their online time on social media, making this the ideal platform on which to engage both through advertising and through brand-building activities.
Social and Video Impact
While Twitter was an early winner with advertisers, the fast-tweeting platform is now much further down the list in terms of where advertisers are spending their money. Much more likely targets for advertising include Facebook, YouTube — and surprisingly, LinkedIn. As the professional networking service continues to build their strategy to bring in job seekers and professionals to their paid service, advertisers of certain brands are seeing impressive results from their spend.
What is not surprising is that B2B advertisers see a higher value for their dollars on LinkedIn than any platform other than Facebook. It remains to be seen whether that trend will continue or if YouTube will overtake either of the other two platforms in the near future.