20161026-Advertising_Demand_Report_2016__North_America_27页_5mb

Advertising Demand Report 2016: North America Summary

Core Content Overview

This report analyzes aggregated and anonymous data from 800 billion visits to 800 North American websites between January 2013 and June 2016, alongside survey data from over 1,000 U.S. consumers. It explores trends in website traffic growth, ad-blocking behavior, and the effectiveness of different advertising channels.

Key Insights

• Internet Saturation: North American internet penetration has reached 77%, with minimal growth in website traffic (0.1% CAGR) over 42 months. Organic traffic growth is slowing, suggesting the need for cross-channel advertising to maintain engagement.
• Traffic Growth Segments:
  • 62% of websites grew in visits, with an average increase of 51%.
  • 38% of websites declined, with an average decrease of 31%.
• Ad-Driven Traffic:
  • Growing websites rely more on Social and Email channels for traffic.
  • Shrinking websites depend more on Affiliate/Partner and Natural Search.
• Smartphone Traffic:
  • Smartphone ad-driven traffic increased by 40% over the past three years.
  • 7 out of 10 smartphone visits come from ad channels in Q2 2016 (vs. 1 of 2 in 2013).
  • Social and Email channels significantly outperform others in smartphone traffic.
• Revenue Per Visit (RPV):
  • Growing retailers generated an average of $0.17 more per visit than shrinking ones.
  • Retail showed the largest RPV gap (72% vs. 63%), while Finance had the lowest ad-driven traffic (50% average).
  • Media & Entertainment had the highest ad-driven traffic (72% average).
• Consumer Perception of Ads:
  • 68% of consumers believe ads have improved or stayed the same.
  • 57% find marketers effective at providing interesting ads, with higher satisfaction among those aged 25-34.
  • 78% prefer personalized ads, but only 28% feel they are correctly tailored.
  • 41% rate Facebook as the best platform for relevant and interesting ads.
• Ad Blocking Behavior:
  • 19% of desktop users and 21% of smartphone users use ad blockers due to frequency issues.
  • 44% of ad blockers find desktop ads annoying, with 89% planning to continue using them.
  • 57% of consumers find non-skippable video ads most annoying.
  • 48% of consumers would stop watching video if they cannot skip the ad.
  • 71% of consumers try to skip ads, with only 37% willing to pay to avoid them.

Ad Blocking and Consumer Behavior

• Ad Blocking Penetration:
  • Globally, desktop ad blockers increased 4x since 2013, reaching 220 million monthly active users.
  • In the U.S., desktop ad blocking penetration is 18%, lower than in Europe but with a large user base, meaning a 44% potential increase if it matched European levels.
• Ad Blocking Triggers:
  • 51% of users block ads due to over-targeting and abuse of personal data.
  • 41% block ads due to too many ads being shown.
• Recommendations:
  • Marketers should reduce targeting intensity and implement frequency caps.
  • Advertisers should focus on attention-grabbing, non-intrusive content.

Channel Performance and Traffic Sources

• Ad Channels:
  • Social and Email channels are more effective in driving traffic, especially on smartphones.
  • Display ads have seen a significant decline in traffic share, dropping by -32% over three years.
• Traffic Sources:
  • 34% of website traffic is ad-driven.
  • 15% of U.S. site visits come from other countries.
  • Great Britain and Spain have higher cross-border traffic than France and Nordic countries.

Conclusion

The report highlights that while ad blocking is on the rise, particularly on desktops, the effectiveness of personalized, consistent, and non-intrusive ad strategies remains crucial. Marketers must adapt by leveraging social and email channels, improving targeting and frequency management, and focusing on engaging, relevant content to counter ad blocking trends and maintain consumer interest.