Discovering A Valuable Digital Audience Segment
According to Turn, Inc., as brands and agencies work with technology providers to drive cross-channel marketing initiatives, global digital advertising spend continues to grow, and is projected to reach $113 billion this year. And much of that spend will go to automated and data-driven advertising, for maximum scale and ROI to marketers. A recent IDC report estimates that by 2016, worldwide real-time-bidding (RTB) spend will increase to $13.9 billion and the “big data” market will grow to $23.8 billion.
The report highlights insights gained from the January to March 2013, discovering the “Digital Elite,” a population segment that today’s marketers seek for their online habits and spending power. Key insights in this report include:
- The Digital Elite see 24 times more ads than the average consumer, putting them in such demand that marketers are willing to pay an eCPM (Total Earnings ÷ Impressions x1000) that’s 85% higher than average in order to reach them
- Mobile ad impressions remain inexpensive due to concerns about a reliable ecosystem and standards for anonymous data tracking
- Social advertising is cost-effective and immensely popular
- Display advertising and online video advertising continue to dominate, with advertisers paying a premium to reach consumers through familiar, big-canvas formats
The Digital Elite are young, white collar professionals, aged 21–34, live in cities, and love foreign travel, says the report. Earning more than $76,000 a year, they have diverse media tastes, enjoying public radio, Family Guy, Elle, and GQ. They’re found at concerts and bars. 85% of the Digital Elite live in the U.S..
The Digital Elite command an average eCPM of $1.15, reflecting an 85% premium over the $0.62 paid for other audiences.
- Mobile 56% premium
- Display 106% premium
- Social 100% premium
- Video 21% premium
According to the report, the ad format trends seen by this unique audience across Online channels are:
- Facebook and Facebook Exchange represent the vast majority of social advertising
- Display trends and mobile banner size reflect the growing popularity of the standard unit sizes
- In-stream 15- and 30-second formats are overwhelmingly popular for marketers looking to reach digital audiences
- 15-second pre-roll has long dominated the video category due to its ease of implementation
Considering costs to reach the Digital Elite, the report shows that:
- Advertisers are paying a premium for video and other rich media formats because they are more engaging. Global average video eCPM (Total Earnings ÷ Impressions x1000 = eCPM) grew from $9.41 in January to $9.99 in March, an increase of 6.16%.
- Display eCPM rose from $0.92 to $1.06 in Q1 2013—an increase of 15.2%.
- More inventory has moved into mobile, keeping prices down. Mobile eCPM dropped from $1.31 in January to $0.72 in March, a decrease of 45%.
And, the report notes that social advertising remains low-cost and efficient for brands:
Social (Facebook/FBX) eCPM dropped 20%, from a global average of $0.30 in January to $0.24 in March. Global eCPM trends, according to the report, show:
- Display: 53.21% of impressions are in the $0.10–$0.80 range
- Mobile: 52.03% of impressions are in the $0.10–$1.00 range
- Social: 61.33% of impressions are in the $0.10–$0.50 range
- Video: 71.16% of impressions are in the $8–$12 range
Finally, Turn suggests that additional examples from their wealth of data can inform smarter marketing strategies. Examples include
- People who interact with display ads for a tax preparation service are more likely to have a PhD or a master’s degree, while those who interact with that service’s ads on Facebook are less likely to have an advanced degree
- Consumers who make less than $40,000 are more likely to interact with a consumer electronics brand’s display ads, while those who make more than $100,000 are more likely to interact with the brand’s ads on Facebook
- Consumers who interact with display ads for a mobile phone brand are more likely to work in education or training, the military, or government. Consumers who interact with the same brand’s Facebook campaign are more likely to be employed in research, science, biotech, legal services, or arts and entertainment
For more information from Turn, Inc., please visit here.