Primarily in the past, marketers have used online advertising for direct response purposes. Now companies are moving to expand their online presence by incorporating branding efforts to even out their marketing mix. According to a report from the CMO Council and Vizu, 63% of marketers will increase brand advertisement investments, 51% will increase direct response spending and 64% plan on employing an even mix of the two. To facilitate this increase, many marketers are shifting direct response dollars to brand advertising initiatives.
When it comes to branding online, advertisers will focus on three key mediums: social media, mobile and video. Around 70% of respondents plan to increase spending on social media and mobile advertisements. Social media is the #1 activity on the web—users continue to flock to social media sites where native advertisements are generating brand awareness and attracting new customers.
Mobile provides boundless marketing potential. This year, the time U.S. users spend on mobile devices will surpass the time spent online on desktop and laptop computers. Social sharing via mobile devices has also exceeded desktop/laptop sharing. By increasing mobile advertising spending, marketers are finally starting to cater to their consumers’ digital behavior.
Another area that will see a larger investment is online video—64% of marketers plan to increase spending here. Forty-eight percent of brand marketers will shift dollars from television into online video. This is already apparent: from Q1 to Q2 2013, the number of online video ad impressions rose 40%. Additionally, mobile saw a 73% increase in the number of video ads in the second quarter.
Though marketers plan to expand into these outlets, the expansion is limited. Social media, mobile, and online video hold great marketing potential—but advertisers want a better means of quantifying their return on investment, using consistent metrics across platforms and offline and online media. Determining the ROI of a campaign is essential; marketers are demanding clarity and veriﬁable results.
Advertisers are focused on branding efforts and have moved online to execute the appropriate marketing strategies. Social media, mobile and online video advertising are seeing ever-increasing growth, but lack concrete measurability. This may be a roadblock for additional spending increases as marketers seek out clear, detailed results.