College-age Millennials are growing more cost-conscious; mobile forecast to own 48% of ad spend by 2017; digital advertising gains on TV in agency survey; and more
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Young Millennials becoming more cost-conscious
If brands want to resonate with college-age Millennials, they might appeal to their growing sense of frugality. A new back-to-school survey of 1,000 college students by Fluent reports that 79% are more cost-conscious and 53% have less money and more expenses than last year.
The survey also identified the top 5 items they like to splurge on:
- Mobile devices
Here are the three most important influences on their purchasing decisions, says the survey:
- Friends’ recommendations
- Online/mobile coupons
- Test-driving products in stores
And the three least important influences:
- Pinterest and other visual-sharing social channels
- Online product demonstrations
- Magazine articles and editorials
Mobile to represent 48% of total digital ad spend by 2017
Robust growth in the digital display advertising market has caused eMarketer to boost its spending forecasts for mobile ads and real-time bidding (RTB) for 2013 through 2017. Real-time bidding, or programmatic buying, is forecast to grow 73.9% this year as more advertisers get used to the complexities of automated buying and seek to leverage it to reach targeted audiences, says the report.
Here’s the new forecast for mobile:
- $3.81 billion this year; represents 21.7% of forecasted 2013 digital ad spend.
- $14.5 billion by 2017; represents 48.4% of forecasted 2017 digital ad spend.
And for RTB:
- $3.34 billion this year; represents 19% of forecasted 2013 digital ad spend.
- $8.89 billion in 2017; represents 29% of forecasted digital ad spend.
Digital advertising keeps gaining on TV
Agency interest in TV advertising has dipped to a three-year low while their support of digital channels has never been stronger, according to a survey of ad agencies by STRATA. While TV remains the top choice by 44% of agencies, 35% said digital was the most interesting platform, a 16% increase over 2012.
Driven by record growth in social media and online video, digital is grabbing more advertising dollars and gaining on traditional media, said the study.
Agencies reported growing interest across digital channels:
- 28% will spend more on digital advertising than traditional in the next one-to-three years
- 66% are more interested in online video than last year
- 74% use free social media to support client campaigns
Additionally, 78% of agencies said they’d rather leverage display advertising on mobile platforms than build out mobile sites and applications on their own.
CMOs, CIOs aren't collaborating effectively, says survey
Can’t CMOs and CIOs just get along? Not according to a new global survey of 400 marketing and 250 IT executives by Accenture. It found only 10% believe they’re collaborating as they should.
CIOs appear to be more committed to greater collaboration than CMOs, says the report, but the findings show several areas of disconnect:
- 77% of CIOs say IT-marketing alignment is important, versus 57% of CMOs
- CMOs say gaining customer insight is their number-1 reason to collaborate; it’s the number-10 reason for CIOs
- CIOs says improving customer experience is the number-1 reason to collaborate; it’s the number-3 reason for CMOs
"With today's multichannel consumer seeking highly relevant experiences, and with digital and analytics platforms emerging to help companies respond, marketing and IT executives must work more closely together," said Brian Whipple, global managing director of Accenture Interactive.