Digital Recap: Local Digital Advertising On the Rise in 2020
We’re collecting a host of links, videos, and assorted analysis on the ever-changing world of digital marketing. We invite you to skim, share, analyze, argue, and refute – just so long as you don’t get embarrassed at the water cooler again. Here are the latest digital marketing news and trends for the week of November 8, 2019.
Digital to Boost U.S. Local Advertising in 2020
Investment in digital media continues to rise with BIA Advisory Services estimating that total U.S. local advertising revenue will reach $161.3 billion in 2020, an increase of more than $8 billion from 2019.
BIA Advisory Services credits political advertising for a large portion of the expected increase, as political campaigns have come to understand the impact of digital advertising on the national elections of 2016 and 2018.
Traditional media revenue, however, is expected to rise only 1% from $93.2 billion in 2019 to $94.4 billion in 2020. Linear television and radio are still the preferred outlets for political advertising, but digital media, specifically mobile and social advertising, are making significant gains. By 2024, BIA Advisory estimates that $44.6 billion will be invested in mobile and social advertising with around 40% tied to social.
Why Advertisers are Investing in Podcasts
Advertiser investment in podcasts are projected to double by 2021, according to a report from the Interactive Advertising Bureau and PricewaterhouseCoopers. Zoe Soon of Mobile Marketer goes as far to say that podcasting might be the “perfect 21st century digital media experience“.
Soon cites the intimacy, engagement, and ad environment as factors in an increased passion for the audio shows and the products they promote. Here are a few other reasons Soon believes podcasts are a perfect match for advertisers and consumers.
New fans and “super listeners” are equally engaged.
Super listeners, people who spend at least five hours a week listening to podcasts, are only increasing their listening habits. But somewhat surprisingly, new podcast fans are just as engaged as super listeners, according to an Edison study.
Podcasts can increase brand loyalty to the companies that support them.
Ads that are placed within podcasts, often delivered by podcast hosts with an emphasis on improvisation, feel more like endorsements than ads.
As podcasts improve in production value, content quality, and thought diversity, we expect to see them continue to rise in popularity and ad investment.
Connected TV Sees Huge Jump in Revenue in 2019
While connected TV advertising makes up just 10% of overall TV ad revenue, its 40% spike in 2019 displays a significant shift. Advertising on Hulu, Roku, and similar platforms is expected to reach almost $7 billion in 2019 and more than $10 billion in 2021, according to eMarketer.
Connected TV offers advertisers the opportunity to more accurately and efficiently target consumers when compared to linear television. Some advertisers, however, have voiced concerns about measuring the impact of connected TV.
But as tracking data becomes more accessible, and brands become more savvy in their digital efforts, we expect connected TV to be an integral part of an overall marketing strategy and an opportunity for brands to connect with consumers at the local level.