The U.S. ad market is projected to reach an all-time high in 2018

Companies are set to spend $135 billion on online video in 2017, per research released  by Magisto. This amount is almost 2x the $71 billion companies will spend on TV spots and 1.5x the $83 billion what will be spent on digital ads. The U.S. ad market is projected to reach an all-time high in 2018, with media owners collecting $197 billion in net ad revenues, a 5.5% growth from 2017, according to Magna’s new advertising forecast. This is a 2.7% acceleration on last year’s growth, and stronger than Magna’s earlier forecast of 5%.  Smart or stupid?

Among women over 18, traditional live TV remains the largest component of their media consumption , with an average of 4 hours a day spent watching this medium. From 2015 to present, this demographic has consistently spent an average of around 30-plus minutes per day with time-shifted TV. (Source: Nielsen). So why are advertisers shifting so much money to digital?  Here are so more troubling stats..

[inlinetweet prefix=”” tweeter=”” suffix=””]Over one-third (35%) of programmatically-traded desktop ad impressions in the United States were fraudulent in Q1 2017.[/inlinetweet] If your company is spending money on online advertising, you are almost certainly being robbed.Google reported that 56% of online display ads that are paid for by advertisers are never seen by a live human being. (And remember, Google is one of the world’s largest sellers of online display ads.) Recently The New York Times ran a story claiming that 57% of online video ads are never seen. CNET reported on a study by research firm Incapsula that found only 38% of traffic on the web is human.  Kraft announced that it was rejecting 75-85% of the online ad impressions it was being offered because they were “fraudulent , unsafe, non-viewable or unknown.”

10 facts, direct from the real world:

1ne: E-commerce in 2014 accounted for 6.5 percent of total retail sales.

2wo: 96% of video viewing is currently done on a television. 4% is done on a web device.

3hree: In Europe and the US, people would not care if 92% of brands disappeared.

4our: The rate of engagement among a brand’s fans with a Facebook post is 7 in 10,000. For Twitter it is 3 in 10,000.

5ive: [inlinetweet prefix=”” tweeter=”” suffix=””]Fewer than one standard banner ad in a thousand is clicked on.[/inlinetweet]

6ix: Over half the display ads paid for by marketers are unviewable.

7even:[inlinetweet prefix=”” tweeter=”” suffix=””] Less than 1% of retail buying is done on a mobile device.[/inlinetweet]

8ight: [inlinetweet prefix=”” tweeter=”” suffix=””]Only 44% of traffic on the web is human.[/inlinetweet]

9ine: One bot-net can generate 1 billion fraudulent digital ad impressions a day.

10en: Half of all U.S online advertising – $10 billion a year – may be lost to fraud.

If anyone tells you that you have to have video on your site or within social media let them know thatfacebook users only watch 3-5 seconds of video and 85% without sound.  Once again “the experts” are trying to lead marketers, and brands, down a path that wastes money.

Marketers, for the most part, are just sheep following the herd over the edge. [inlinetweet prefix=”” tweeter=”” suffix=””]Consumers want to be left alone online, but marketers are just hell bent on interrupting them.[/inlinetweet]

About richmeyer

Rich is a passionate marketer who is able to quickly understand what turns a prospect into a customer. He challenges the status quo and always asks "what can we do better"? He knows how to take analytics and turn them into opportunities and he is a great communicator.

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