Saturday, May 30, 2020

Traditional TV Ad Spend Moving Toward Digital Mobile Ads

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Pesach Lattin
Pesach Lattinhttp://pacevegas.com
Pesach "Pace" Lattin is one of the top experts in interactive advertising, affiliate marketing. Pace Lattin is known for his dedication to ethics in marketing, and focus on compliance and fraud in the industry, and has written numerous articles for publications from MediaPost, ClickZ, ADOTAS and his own blogs.

For many years, we saw digital advertising grow at quite an astounding rate. It developed into its own industry, and for the most part, grew based on new advertising money rather than ‘stealing’ it from other ad segments (of course, digital did absorb some money from dying ad options such as newspaper).

According to a new report from the Commercial Economic Advertiser Service of Australia (CEASA), however, that seems to be changing. They saw that in 2016, TV ad spend for over-the-air channels dropped from 24% of all ad spend to 21.6%.

This also happened while other reports found that overall digital ad growth is starting to slow down in most segments. It seems that advertisers have reached a point where they are slowing down their new investments into ads, and just moving their ad-budgets around to different segments of the advertising ecosystem to attempt to get the best return on investment.

Mobile advertising continues to see the biggest growth, now making up 15% of the overall paid media market, which is an impressive increase from 11% in 2015. This data was drawn from resources including the Outdoor Media Association, IAB Australia, Commercial Radio Australia, ThinkTV, and other reliable sources.

While the data is about Australia, the trends seem to be happening in most Western countries with mature digital advertising markets.

IAB Australia’s CEO, Vijay Solanki commented on the report saying, “The latest consumer data shows that over 20 million Aussies are online and 15 million are on their mobiles. As consumer penetration increases and immersion deepens, it’s inevitable that smart marketers would want to follow. All the data suggests that deepening consumer immersion into mobile and video will continue to drive revenue.”

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