If you haven’t been following the digital ad spending predictions for 2016, then you may not be aware of the major shift in focus from television to digital advertising as the preferred media platform for increased ad revenue. More importantly, you may not be aware of the more than ever dire need to improve your mobile campaigns in light of these overwhelming 2016 trends.

Keep following…

Currently, Magna Global projects that in 2016 digital ad spending will surpass television advertising as advertisers are focusing more on social media, video, and search strategies. In fact, the predictions for the future of TV advertising has apparently been dipping since the last quarter of 2014 where Magna Global cites significant decreases in TV ad sales as the cause. [1] These decreases affecting the future of media advertising in 2016 can further be explained by new initiatives across the digital spectrum.

Here are the top three areas where digital advertising beats out television advertising:

Facebook is growing again

facebook growing 2016
Talk of Facebook losing out to other social media platforms in terms of user preference has made nudges in marketing campaigns for awhile but apparently no dents in Facebook’s new initiatives. Launching more auto-play video ads and improving their monetizing of Instagram feeds, earnings are expected to be rolling out higher than ever. [2] They’re pushing to claim territory well suited for the future of mobile video advertising, as claims their VP of Global Marketing Solutions. According to her, mobile video consumption is responsible for 21 percent of total video consumption. And this is right up Facebook’s alley of improving their online video adverting experience. [3]

No surprise, the adoption of mobile devices continues to grow

According to Venturebeat, 2016 will see a whopping $100 billion in spending reached by mobile ad spending that will account for more than 50 percent of all digital ad sales. [4] To put things in perspective, this milestone figure is nearly a 430 percent increase from 2013. The worldwide adoption of mobile devices by consumers is overwhelmingly mobile growth 2016driving up these figures. As eMarketer points out, particularly in emerging and developing markets consumers are surfing the web exclusively on their mobile devices. [5]

Thus, now even more so, the burden of mobile personalizion and improving user experience is placed on advertisers to give the consumer what the consumer wants.

And for that reason, the next trend is a major game changer.

Video Advertising is becoming more optimized and more optimize-able

More and more, ads across social platforms on Facebook and Youtube are being better optimized for campaign budgets with particular reach and targeting in mind. According to Business Insider reports, video ads have an average click-through rate (CTR) of 1.84 percent – the highest click-through rate of all digital advertising formats. They account that this high figure is partly due to the recent reshaping of the entire digital ad market through programmatic ad-buying and selling tools.[6] On another note, where Facebook seems to be leading the pack with their video ads rolling out, Google carries a torch right behind them with embedded videos in search coming soon [7].

Where does all this leave TV advertising in 2016?

Let’s just say 2016’s campaigns – political and social – will give TV advertisers a run for their money. The overwhelming dominance of campaign minded advertisements will suit the TV sets well for the coming year leaving little room for other agendas related to traditional TV advertisement. According to NPR.org, TV ad spending will top $4.4 billion for federal races this year. That’s an increase of $3.8 billion from last year. [8]

Not sweating the small stuff though…

The upward trends of digital surmounting TV advertising should be enough to urge advertisers to get on board with updating their mobile campaigns.

But to be clear, TV advertising is not dying. Sales are merely stagnant.

And to be fair, the 2016 election campaigns will not be the only dominators on TV. Other trends to expect on TV in 2016 include cross-demographic shows, spin-offs, and shows with non-white stars – of which one might say are heartwarming the audiences for an election in the run. [9]

And what does this mean for Hispanic Marketing Campaigns in 2016?

It leaves them in the same place they should have been at the start of 2015.

Digital trends are growing and have been growing. Just as more consumers are adopting mobile devices, more advertisers are adopting digital-focused campaigns in response.

In in the competition for your ad dollars, there’s a clear winner for your 2016 ad budgets and that’s the digital advertising arena.

 

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[1] https://www.wsj.com/articles/digital-ad-spending-in-u-s-to-surpass-television-spending-in-2016-1444937398
[2] https://www.cnbc.com/2014/10/27/facebook-earnings-the-street-bets-against-company-warning.html
[3] https://www.cnbc.com/2014/10/28/heres-how-facebook-will-keep-growing.html
[4] https://venturebeat.com/2015/04/01/mobile-ad-spending-to-hit-100b-in-2016-and-become-the-biggest-digital-ad-market/
[5] https://www.emarketer.com/Article/Mobile-Ad-Spend-Top-100-Billion-Worldwide-2016-51-of-Digital-Market/1012299
[6] https://www.businessinsider.com/digital-video-advertising-growth-trends-2014-5
[7] https://www.forbes.com/sites/jaysondemers/2015/09/25/are-video-ads-coming-to-google-search-results/
[8] https://www.npr.org/sections/itsallpolitics/2015/08/19/432759311/2016-campaign-tv-ad-spending
[9] https://www.adweek.com/news/television/5-tv-trends-should-shape-next-season-164545