Consumer electronics industry to invest more in digital advertising initiatives
Posted on May 28, 2014 by YuMe
As technology continues to push forward and consumers become more savvy, many brands are coming to the realization that staying ahead in the marketplace means investing more resources into digital advertising. According to a report from eMarketer, the consumer electronics industry will spend $3.8 billion on digital advertising this year, and that number is expected to grow to $6.01 billion by 2018.
Much of the growth taking place within the sector is related to increased consumer usage of tablets and smartphones. As a result, not only are manufacturers racing to create better, more advanced products, but they're also trying to get these items in front of potential buyers as quickly as possible. Video ads are one of the most effective ways to get consumers to latch onto a product and eventually purchase it.
One of the most efficient ways to accomplish this task is to market to consumers where they are. Because so many individuals rely on mobile technology, it only makes sense to advertise on these platforms. The eMarketer report states that in 2014, 33 percent of spending on digital ads within the consumer electronics sector will be devoted to mobile media advertising.
Because of this, video ad publishers are expecting their revenues to increase. According to a separate report from eMarketer, citing a joint study conducted by Editor & Publisher and Cxense, close to 90 percent of publishing executives in the U.S. expect their companies' revenue from digital ads to grow over the next year.
The added revenue is expected to come from video ad publishers being able to prove to brands that they understand their audience and have the ability to effectively target them. This represents an overall change in philosophy as publishers have come to the conclusion that advertising revenue adds more to the bottom line than pay subscriptions for consumers.