Digital Advertising Today
Recent data shows social ad spend is accelerating at an even more rapid pace than forecasted this April. According to eMarketer, global ad spend will reach $25B in 2015, as opposed to the expected $23B. One industry in particular is responsible for over one-fifth of total digital ad spend, and looks to hold the number one position in paid digital media through 2019.
One Industry Takes the Lead
Retail ad spend will reach $13B in 2015, and $20B by 2019. That’s a compound annual growth rate (CAGR) of over 12% from 2014 to 2019. Where will the majority of retail spend be directed? Retail mobile ad spend will reach over 51% of total ad spend in 2015, second highest mobile spend to the entertainment industry at 54% of total spend. This is no surprise given the mobile revolution happening today, especially when you consider how large of a role mobile devices play in the shopping purchase cycle. This year mobile spending in retail will reach $75B, and estimated to grow to $150B by 2019.
All Eyes on Mobile
Today, there are over 2.6B mobile users globally. According to Social Times, 82% of smartphone users will shop on their mobile device this year, and 81% are at least researching before making a purchase decision. For example, in India, Internet users (Age 18-54) prefer digital devices to store associates when comparing prices, checking product information, and availability, eMarketer. In addition, 97% of urban users in India researched and browsed products and 96% compared purchases. Twitter aligns to this mobile movement because nearly 90% of Twitter usage occurs on mobile.
The explosion of mCommerce is huge, but the growth in digital video spend in retail is also on its way up, accounting for 20% of total ad spend in 2015. Retail advertisers will spend $1.6B on digital video this year, the highest of any industry, accounting for over one-fifth of all US digital video ad dollars.
Twitter Influences Online Buyers During the Purchase Lifecycle
Twitter has long been an online shopper’s go-to for insight, assistance, and inspiration during the purchase cycle. In a recent study by Twitter, users were likely to spend 22% more online shopping than non-users from March to September this year. On average, users made online purchases 6.9 times/month, as opposed to 4.3 like non-users. Almost half (49%) of female Twitter shoppers say Twitter has influenced their purchase decisions.
Not only are Twitter shoppers influenced and given inspiration within the channel, but they’re also engaged. According to Twitter, shoppers are 160% more likely to be updated on brand news and promotions, 120% more likely to search the channel for deals, and 240% more likely to converse with a brand over other social channels. For example, Bombfell is a brand with a unique product offering and early on advertised on Twitter using images that focused on their product to drive awareness and give users more information about the brand. This resulted in more qualified clicks because customers were clicking through to their site because they already like what they see.
Retail Advertising Tips for Success
As an advertiser in the retail industry, the good news is your consumers are spending vast amounts of time online and therefore are ready for you to reach out and engage with them. However, how you advertise to reach the most valuable audience for your brand is crucial. Here’s a few tips for retail advertising success:
1. Online consumers like two things, deals and steals: Use Twitter Promoted Tweets to notify consumers of an upcoming promotion or sale. Drive traffic to your online store, maybe through offering a 20% discount.
2. Get visual: We all know that visual content performs better, on average, than non-visual content and this extends to advertising. Use highly visual or digital video content to your ads to grab consumer attention and encourage them to click on your ad. For example, this Fall, apparel brands can add imagery of their newest cold weather inventory with a 15% discount for signing up with their email. Instagram, the newest social platform to join the ad space, is a great channel to attract shoppers with creative content.
3. Make use of your own data: Use your own CRM data to better advertise across Facebook, Twitter, Instagram, and Display. Retailers can advertise to their customers in a safe and all new way, and target lookalikes to find valuable prospects. For example, recommend future purchases based off customers past purchases. Show your customer that you paid attention to them and are interested in finding them the right product for them the next time they are ready to purchase.