Advertisers Spend More on Digital Ads than TV Ads

Advertisers Spend More on Digital Ads than TV Ads

This year marks the first year that spending on digital advertising will surpass spending on TV advertising.  TV ads or commercials have been the main medium for both major and local companies to reach their target audience.  However, less people are watching traditional TV and turning to online streaming services such as Hulu and Netflix while at the same time, more people are browsing the internet on mobile devices such as tablets and smartphones.  More people can be reached through these online avenues than on cable TV, therefore, companies and advertisers are spending more money on digital ads. It is more important than ever to make sure your company is investing in digital marketing to reach your customers through these online avenues or you could lose out to your competitors.  The following statistics and infographic show the increase in digital ad spending and its projected growth. Total Amount of Ad Spending Digital advertising edged past TV advertising in terms of spending in 2016 as digital ads account for 36.8% of the total media ad spending to 36.4% for TV ads.  In 2017, this difference is projected to increase with digital marketing taking up 40% of all media spending and TV advertising dropping to 35.1%.  Mobile marketing spending is growing as well as it accounts for 23.5% of all ad spending and is projected to increase to 27.7% in 2017.  Mobile use is one of the biggest factors in the increase in digital ad spending because more people are shopping and browsing on their mobile devices.  Your company’s digital marketing strategy must include mobile marketing to help reach this growing...
Pay Per Click Advertising

Pay Per Click Advertising

If your business goals are: getting instant local and targeted traffic; increasing sales or leads; promoting seasonal products; branding; high ROI then Pay Per Click Advertising is right for you! After organic search engine optimization, pay-per-click or PPC is the most popular Internet marketing program. Each of the major search engines offers a PPC program. Google’s PPC program is called AdWords, Yahoo’s is called Yahoo! Marketing Solutions, and MSN has Microsoft AdCenter. There are also some secondary search engines offering PPC programs. Examples are Business.com and TripAdvisor.com. PPC is a program where ads or links to the advertiser’s website are displayed in the SERPs when visitors enter specific keywords. The advertiser pays only when a visitor clicks on the link. The cost per click (CPC) is set up by the advertiser via an interface the search engine provides. Typically monthly and daily budgets are used to help businesses control their costs. The actual CPC varies but has a minimum for each search engine. An example of how to calculate the ROI of a PPC campaign: Your budget per month is $5,000 with a $2 maximum CPC. Because you only pay for ad clicks and you set the maximum CPC, the website will receive at least 2,500 clicks. Your website may receive substantially more clicks at a lower CPC. If your website conversion rate is 10%, your business will make 250 sales as a result of the clicks. If the average sale amount is one hundred dollars, your business will have returned $25,000 in sales. Four steps to a successful PPC campaign: Identify your advertising goals, and then create relevant...