This week, we show how your peers are extremely excited to get started advertising on Instagram, how you can reach more Millennials and Hispanics on Facebook than with TV, and how the growth of digital advertising is accelerating much faster than the growth of TV ads.
Advertising Age just asked US Marketers which new digital channels they are interested in allocating their budgets, and 72% said that they are interested in Instagram. That’s dramatically higher than the second-place channel, Pinterest, at only 41%, and bodes extremely well for the growth of Instagram advertising in 2016, especially now that Instagram has opened up its advertising opportunities to all advertisers. At Social.com, we are proud to be a launch partner of the Instagram advertising API and to support our clients as they get started with this new opportunity.
Facebook just published a new study in partnership with Nielsen which shows how to reach Millennials and Hispanics in the United States, two coveted demographics. As this chart by AdAge shows, more Millennials and more Hispanics can be reached using just Facebook advertising than traditional TV advertising (14% vs 12% of Millennials and 18% vs 16% of Hispanics). One reason for this, as the study points out, is that 77% of Millennials and 72% Hispanics always have their phones on them, and Facebook has become a mobile-first channel. In contrast, these audiences are mainly “Light TV Viewers,” making it harder to engage them with this traditional channel.
Our third insight this week shows that advertisers globally are taking note of this growth in the power of digital ad channels versus TV, and are adjusting their spend accordingly. Since 2012, and projecting through 2016, a new study by Carat shows that TV advertising will grow between 3% and 4% each year, while digital advertising will grow between 14% and 16%. In 2012, TV advertising was 43% of all digital advertising spend versus just 17% for digital. By next year, that will be down to 41% for TV and up to 27% for digital.