Stats of the week: consumers say no to online advertising

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Marketers have their work cut out for them as consumers globally continue to employ ad blockers in their defence against online advertising, a report from HubSpot shows.

1. 50%: of global audiences are installing ad blocking tools

Research this week from HubSpot shows 50% of global audiences are installing ad blockers to avoid online advertisements.

In the Asia Pacific region, it found 33% of respondents have already installed ad blocking software, while a further 16% plan to add an ad blocker within the next six months.

Hubspot_APAC Adblocker Adoption Plans_600

The report does not paint a happy picture for advertisers. It found 80% of consumers in Australia, New Zealand and South East Asia leave websites because of interruptive online ads.

Globally, the types of advertising that create a “low opinion” of a company include: telemarketing sales (75%); popup online advertisements (64%), direct mail such as junk mail (47%) and autoplaying video advertisements (45%).

Hubspot_Reactions to different types of advertising_600

2. 96%: the number of consumers who unsubscribe from email lists

The HubSpot report also found 96% of global consumers have unsubscribed from receiving emails.

In the Asia Pacific region,  77% of respondents said they unsubscribed from an email list because they were being sent too many emails, 65% because the email topics didn’t align with the user’s interests and 46% unsubscribed because they didn’t sign up to the mailing list in the first place.

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“Today, brand control is absolutely in the hands of the consumer – they are unsubscribing from emails, skipping commercials, screening telemarketing calls, and most troubling to the ad industry, blocking online ads,” says Ryan Bonnici, director of marketing, Asia Pacific, HubSpot.

Bonnici says marketers who want to connect with potential customers, or maintain existing relationships with loyal customers, need to be smart about digital ad spend. They should do this by supplementing and enhancing the online experience, rather than interrupting it.  Read the full report here.

3. 63%: the percentage of mobile display ads that will be native by 2020

All of this ad blocking business means marketers are looking for more subtle ways to engage the consumer. It could be one reason behind the rise in native advertising.

Research from IHS Technology (commissioned by Facebook’s Audience Network) finds almost two thirds (63.2%) of all mobile display ads will be native by 2020, worth $53 billion in advertiser spend.

This is primarily being driven by in-app native advertising, which recorded revenues of $13.6bn in 2015.

Facebook is the dominant player for mobile display advertising share. This graph shows other key players including companies with native in-app advertising circled in red. Tencent is the owner of messaging apps QQ and WeChat in China.

Stats_IHS_Native advertising display share_600

Two patterns emerge from these results according to the report:

1) Companies which focus on mobile in-app advertising command the majority of the mobile advertising market.

2) Companies which focus on native advertising as a primary revenue stream are the most successful at monetising through mobile.

4. $8.9 billion: the value of third-party in-app native advertising in 2020

First-party native ads (such as Facebook in-stream ads or promoted tweets on Twitter) will continue to dominate mobile native advertising.

However third party in-app native advertising will experience the biggest growth over the next five years, the IHS report finds. It predicts third party in-app ads will be worth $8.9 billion and account for 10.6 per cent of mobile display advertising by 2020.

What is a third-party native ad? It is advertising operated and served by an external partner onto a publisher’s or app developer’s inventory (such Facebook’s Audience Network). This form of advertising is expected to generate $8.9 billion in revenue by 2020, accounting for 10.6% of all mobile display advertising.

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5. 76%: mobile percentage of all online display advertising revenue by 2020

The IHS report finds global mobile advertising is growing faster than any other medium – 71% in the last year, accounting for 44.6% of all online advertising. By 2020, more than three quarters (75.9%) of all online display advertising revenue will come from mobile, worth $84.5 billion.

stats_Global Mobile share of online advertising_IHS_600

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