Each year, the Internet industry goes abuzz when Mary Meeker of Kleiner Perkins presents her annual Internet Trends report. As she always does, Meeker packs a lot of details in the 355 slides(!). Particularly noteworthy (at least to us here at Origami Logic) is that one of her initial sections, Online Advertising (+ Commerce). Since we are a measurement-focused company, we especially took interest in this initial section because of the “Increasingly Measureable + Actionable” theme. Here are our top 5 highlights from the online advertising trends section:
Ad Growth Driven by Mobile
Ad growth is being primarily driven by mobile advertising. In 2016, there was 22% growth in Internet advertising, and mobile advertising dollars exceeded desktop advertising dollars for the first time ever.
Room for Growth in Mobile Advertising
As the slide below indicates, unlike other channels, there is a significant gap between the percentage of time spent on mobile and the percentage of spend for that channel. If the mobile channel ends up behaving like other channels, this portends a significant increase in mobile advertising spend over the foreseeable future, as the percentage of spend catches up with the percentage of consumption time.
Internet Ad Spend Will Exceed TV
Dollars spent on Internet advertising will exceed TV advertising for the first time in 2017. This is a significant milestone that the industry has been waiting for.
Google and Facebook Still Dominate
The two giants account for 85% of the growth in Internet advertising!
Measuring ROI Still a Challenge
Advertisers like to measure social engagement but find it challenging to measure ROI. The slide below is no surprise to us, since we work with some of the world’s largest advertisers to improve their ability to measure the performance of their marketing activities. Measuring social engagement is pretty easy, but it’s not so easy to measure things like conversion and ROI since it typically requires different types of data to be brought together and analyzed.
That’s just some of the highlights from online advertising trends. You can look at the entire slide deck here.