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Mobile spend due to overtake TV: What does this mean for advertisers?

The news that mobile advertising spending is on track to overtake television spending in the United Kingdom is massive. Since the beginning of the advertising industry, TV has been the central strand to launch all new products and reach core audiences.

Budgeting for TV advertising is a big deal for publishers and media owners. Google recommended that 24% of a 16-34 TV budget should be spent on YouTube at its Brandcast event, which shows the move is ever closer.

Ad spend is moving away from more traditional channels such as print and TV and into “newer” channels such as mobile. Recent research from eMarketer found that mobile will account for 20% of UK total media ad spending, and the study predicts that by 2016, TV’s share of total UK media ad spend will drop to 24.8% (£4.27 billion) while mobile advertising will rise to 25.5% (£4.4 billion).

This trend is reflective of consumer behaviour. UK adults are expected to spend an extra 30 minutes a day browsing Web sites and using apps on smartphones and tablets this year compared to 2014, according to the Guardian.

Where consumers’ eyeballs go, ad spend tends to follow.

Although mobile is growing at a huge pace and is due to overtake TV, TV is still a hugely important channel and it’s important to ensure advertising works as one campaign rather than split into channels.

Utilising other media elements to work alongside and with mobile means that it will be a stronger message to consumers. They do not see their media consumption as separate channels.

With the increase in spend in the channel, the industry is beginning to close the gap with desktop, and mobile is now starting to be more lucrative for publishers. With improved consumer experiences, the mobile channel is set to grow further.

With these trends it’s important to consider the role of the channel and how the whole mix works together. Mobile is totally engrained in consumer behaviour; with every technological advance it will continue to do so. Social media and gaming are core uses for mobile (Facebook is adding more mobile ad features to keep up with usage).

Advertising spend generally follows where consumers’ eyeballs are. For a long time this has been the trend – time spent on mobile devices far outweighs the ad spend.

This is now beginning to shift, but rather than making the immediate move into mobile, advertisers need to carefully consider the role it plays as a channel in the whole media landscape and campaign. Brands still need to consider the context of the environment and the experience that the advertising is aiming to deliver.

Overall, this is great news for mobile as an advertising channel. More investment will mean improved developments and opportunities to push the industry!

About Lorna White

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