As mobile advertising is fast becoming the channel for digital advertising, we sat down with Peter Barry, Commercial Director of AD2ONE, Australia’s largest independent premium digital advertising sales house, to get his views on the 2016 trends in mobile advertising in Australia.
Increase in digital ad spend in Australia
Statista reports Australia’s digital ad spend will reach US$4.7 billion in 2015; that’s 40% of total ad spend in Australia. In 2016 digital Australian ad spend is expected to increase by 11.2%, driven mainly by video, mobile and scalable native ads. As cross-device targeting and attribution issues are resolved, the shift in advertising budgets to mobile will begin to catch up with mobile user numbers and time spent on mobile devices.
Expectations of mobile advertising
Both consumers and brands are looking at larger ad banners that take up more of the mobile field of view, as small banner ads do not work anymore, particularly from a branding perspective. Mobile ad formats will only get bigger as user engagement increases. At the same time, brands are expecting - and should be entitled to - a robust level of viewability. Brands do not want to pay for something that has no opportunity of being seen.
Brands are still not doing enough mobile advertising
Although digital ad spend makes up 40% of total ad spend in Australia, brands are still not advertising enough on mobile. This could be due to several factors: mobile has been seen as a bit of an afterthought, and has poor formats and lack of verified attribution modelling. It could also be due to the level of viewability that brands expect. In addition, some brands have not had a mobile responsive site or app until recently; and this has delivered poor user experience on smaller screens. However, many of these issues have now been dealt with, and that is why digital advertising is predicted to increase 11.2% in Australia in 2016.
Trends in 2016 - beacons and wearables
Coupled with the growth of “Internet of Things”, which includes beacons and wearables, 2016 will be an exciting year for mobile advertising. The data being generated by wearables, such as location, Internet surfing habits, fitness, activity data, sleep patterns and more, is gold to marketers. Beacons, however, are still at an early stage in the Australian market, and will probably only start to take off towards the end of 2016.
No one doubts the benefits of advertising on mobile, and according to recent market trends, mobile advertising is fast becoming an integral part of digital media and marketing. In fact, mobile advertising is expected to outgrow all other digital ad platforms. Unless we see a major shift in human behaviour and everyone suddenly starts to give up the convenience of their mobile devices, mobile advertising is certainly the future of digital advertising.
Peter Barry is the Commercial Director of AD2ONE Australia. AD2ONE AU was recently acquired by US digital marketing firm, Gravity4. AD2ONE AU represents almost 50 websites in the Australian market, including Skyscanner, Coles Online, Playstation, Ticketmaster and many more. In addition to this, advertisers can plug into their Premium Programmatic marketplace, as well as leverage audience segments through their DMP. With offices in Sydney and Melbourne, they are the number one premium sales house in Australia. www.ad2one.com.au
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