Clicksco’s Digital Monthly – August 2018

As digital device ownership evolves so to do the opportunities & challenges facing marketers with Amazon growing, print declining and more from August 2018.


Evolving Digital Opportunities

The proliferation of technology, devices and content over time has allowed media to reach more of us each week than ever before.  In the UK we spend around 9 and a half hours per day consuming media dominated by TV, digital (specifically smartphone), and radio.  Whilst time spent with media has plateaued there are growing digital opportunities amongst media.

In the last 10 years we’ve seen a number of devices take the lead over traditional tech format – primarily smartphones – whilst some of these didn’t exist 10 years ago i.e. tablets, Smart TVs, Wearables, and Smart speakers.  Connected TV, for instance, continues to gain traction in terms of adoption (75% of UK households by 2020) with connected TV ad spend to grow from $8bn this year to $20bn by 2020 as platforms grow too.  Similarly, smart speakers are gaining traction and interest from consumers and marketers

Amazon Ad business to surpass AWS

Amazon has some way to go for its ad business to leapfrog its cloud computing income by 2021 – when it will be worth approx $16bn in operating income, surpassing AWS’ $15bn income for that year.  Digiday suggest Amazon lacks rich media options – particularly video – in its quest for more ad budgets with inventory for Prime, Fire TV, and Twitch not available through its self-serve platform. As well as stepping up its video, simplifying its ad business into one platform is part of their strategy so that advertisers will be able to buy campaigns from the same place; whilst the launch of an Amazon attribution pixel will also be key to proving their ads work.

Building its digital presence further beyond ecommerce was seen with news of its Auto SDK launch to bring Alexa to more cars, as well as the exploration of insurance comparison product.

Continued Print decline fuels digital opportunities further

A 5th consecutive month of newspaper print decline has put further onus on digital for news brands, with the battle for digital supremacy taking shape. According to Comscore UK newspaper site rankings The Sun and Mail Online are battling it out both with around 30m of UK users.

 

 

However; The Mirror-owner, Reach PLC, claims most combined readers at 45.4m a month across its 212 brands (inc 60 websites) with plans to further expand regionally.  Regardless of who leads the market, the key takeaways here are the opportunities for advertisers to reach audiences across some of the most visited sites on the web.

UK’s unique audience opportunities

Some interesting figures have been reported recently, uncovering some potential audience opportunities.  Firstly; the latest ONS figures older shoppers are turning to online convenience e.g. 65+ shopping online 16% (2008) to 48% (2018), with the dominant spending areas including household goods, clothes/sporting goods and holidays. Combined with the rising pension withdrawals could fuel big purchases e.g. holidays, cars, second homes. £2.3bn was withdrawn from UK pensions in Q2’18 (35% up QoQ/17% YoY).

 

 

Other potentially interesting audiences include “Household Enthusiasts” (i.e. responsible parents/spouses) who will spend 51% more over 6 months than impulsive shoppers; whilst ethnic minorities make up 14% of UK population including the 3m UK muslims that celebrate events such as Eid.

Other key reads

  • Highlights of Ofcom’s latest Comms Market Report 2018 includes the UK’s growing dependence on mobile – e.g. 40% of adults look at their phone within 5mins of waking up, and some even check their phone every 12mins – whilst 20% of adults spend 40+hrs online per week.
  • Snap PMP (private marketplace) was launched to enable Snapchat Discover partners such as BuzzFeed, Vice, and Conde Nast to monetise their content on Snapchat, and make more revenue for the platform as a result. Meanwhile Snap’s 44% YoY revenue growth in Q2 was dampened only by a 2% QoQ drop in DAUs, with neglecting international user growth a potential reason for its $250m investment from a Saudi prince.
  • Podcasting continues to grow and so could audio advertising opportunities in general with, for example, Pandora launching new audio ads including dynamically assembled ads, sequentially targeted ads and shorter length ads.