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BizReport : Advertising archives : November 22, 2017

Reports: Digital ad spend up, here's where budget dollars should go

New data out from Advertiser Perceptions has more marketers investing in digital this holiday season, and they're banking on shoppers being there.

by Kristina Knight

Researchers surveyed more than 300 ad agencies and marketers and found that 59% are spending more on digital marketing this holiday season. About half of those are upping the digital spend to find more customers, 44% are investing in digital hoping to tie in to native ad formats, and 40% are pushing for word of mouth and viral take-offs.

And for the results? A full 60% of agencies believe increasing their digital spend will create brand lift, with 50% believing it will increase their sales.

With all those digital campaigns, where should advertisers be putting their budget dollars? In video and around the entire holiday season, finds new research from Strike Social.

Their new report indicates that some budgets are spent on the wrong holiday dates - and on the wrong targets. Strike Social researchers found that YouTube advertisers, especially, may not be spending enough on parent-targeted advertising. Parents begin hitting YouTube and other sites to find holiday gift ideas by Thanksgiving Day, but research shows only about 50% of ad campaign dollars are focused on parents. Comparatively, advertisers push nearly two-thirds (63%) of their budgets to non-parents beginning on Christmas Eve.

"Advertisers are going to miss out on a huge revenue opportunity if they continue to devote less time and money to parents this year. With online shopping becoming increasingly popular for parents and non-parents alike, YouTube advertisers need to make sure they are devoting the right ad dollars to each audience segment," said Jason Nesbitt, VP Media & Agency Operations, Strike Social. "Although this may be the most lucrative time of year, brands shouldn't discount the power of post-Christmas holidays. People are itching to spend their gift cards and exchange gifts for the items they really wanted in that week after Christmas. Advertisers would be smart to save a portion of their holiday budget for this week."

Just how big a deal is the after-Christmas budget? Consider this, New Years Eve and New Years Day shows a 20% higher view rate on YouTube than either Black Friday or Cyber Monday, and yet those advertising on YouTube only put about 5% of their budgets on New Year's spends.

Tags: ad content tips, Advertiser Perceptions, advertising budget, advertising tips, social marketing, Strike Social, video advertising

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