Marketing is an important aspect of business, especially for small businesses that want to compete locally, regionally, or nationally with more recognizable brands. The reason brands become recognizable is because the budget for marketing is there. Too many small businesses spend way too little on their marketing budget and therefore don’t see the sales results or the competitive edge that they would like to. Marketing is one sector that small businesses should be focusing on with more vigor. Right now there is a lot of new advances coming to the field especially with the meteoric rise of mobile devices and mobile ads. It is a good time to invest time and money into marketing strategies for this new and exciting platform.
To put things into perspective, current data shows that $1.6 trillion dollars is spent annually on marketing media.* How can businesses expect to remain competitive if they do not take the time and spend the money to put together effective marketing campaigns? This figure is expected to rise by 5.1 percent a year over the next five years. By the year 2019 global reports, published by Chief Marketing Officer Council World Wide, suggest that roughly $2.1 trillion dollars will be spent annually on marketing media. As more technologies become commonplace the more important and necessary it will be to try and reach those people.
The most recent data available, from 2014, shows that digital advertising was the fastest growing sector. Digital advertising saw a 16.1 percent increase in spending in the year 2014, and that figure realistically only continued to go up in 2015 as more and more companies began focusing on harnessing the power of mobile advertising. The next two largest sectors in terms of spending growth may surprise you. It was not television or print. Both of those categories are slowly on the way out, and it is important to take note of this and plan accordingly for the future. The next two largest sectors in terms of spending growth were video game advertisements which rose by 14.3 percent and broadband which rose by 9.2 percent.
The rise of these segments is not just a passing fad. Global data forecasts that these three sectors, digital, video games, and broadband will all continue to grow in terms of spending. They are expected to continue to grow at rates of 12.7, 8.1, and 7.8 percent respectively every year.
One of the more interesting statistics that illustrates just how big digital advertising is becoming and will be in the future, is that nearly one-third of all Chief Marketing Officers that were surveyed said that digital advertising would account for 75 percent or more of their marketing spending within the next five years.
A clear trend that has been observed is that more and more consumers are running local searches on mobile devices. Such as where is the nearest coffee shop for example. As a result, mobile ad spending on local, location targeted advertisements has gone up 56 percent in total. Location targeted advertisements now account for 37 percent of all dollars spent on mobile ads. In total, $6.7 billion dollars a year are being spent on location targeted mobile ads.
The future of marketing is clearly digital and it is moving to mobile platforms at a rapid rate. Small businesses should take clear note of the trends and focus the majority of their marketing budget and energies there. This will have the largest impact on their future business endeavors. However, small businesses need to spend more money on their marketing efforts, and they need to spend their money wisely. Local mobile ads are the most effective way to reach consumers right now since seemingly everyone has a mobile device.
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*All statistics provided by Chief Marketing Officer Council World Wide