Insights | What the Growth in Digital Ad Spend Means for Agencies & Outsourcing

What the Growth in Digital Ad Spend Means for Agencies & Outsourcing

By Mike McAuliffe | November 17, 2014

It is anticipated spending on digital Advertising will represent 28.3% of total Ad spending Globally by 2016, according to Publicis’ ZenithOptimedia. This increase is driven by a multitude of factors, including more companies interested in digital advertising, and those companies allocating a higher percentage of their total spend in the space.

In order to ensure these dollars are most effectively spent, digital agencies need to stay on top of the evolving technology constantly transforming the industry. This can be difficult to accomplish internally. Better to work with a team dedicated to the digital ad space, that can ensure the work remains cutting edge.

The Rapid Adoption of Mobile Technology

Increases in digital advertising is being driven by a number of unique factors, including the increase in effectiveness of advertising across mobile platforms. It is now common for app developers to create "free" versions of their applications: “free” so long as users watch an Ad or see a visual pop-up advertisement before using the app. Many developers now include this ad spend into the revenue model for their mobile apps.

We have seen how internet advertising expanded rapidly as advertisers saw its effectiveness in reaching the right people at the right time with the right message, at an efficient price. Now, with the spread of ever more sophisticated mobile devices and the increase in time spent on these devices, Global Ad spend will steadily grow in there too for the foreseeable future.

How the Increase in Ad Spending Will Affect Software Outsourcing

With the increase in digital ad spending, digital agencies must be on top of their game when incorporating these advertising channels in their development.

The best way to do this is outsourcing the development to shops dedicated in this space that are constantly monitoring new trends and incorporating these trends in their offerings. Simply, the rapid rate at which technology improves has resulted in knowledge gaps for many in-house teams, and finding this talent in a timely manner can stress an HR department. Outsourcing provides for a more cost-effective approach to acquiring the best talent.

By outsourcing, digital agencies can build a better brand experience for their clients in a shortened timeframe. By finding a team dedicated to the ever-evolving digital sector, digital agencies can improve the impact of digital ad spending. With the right, dedicated team, they can ensure that their work remains cutting edge, by taking advantage of the latest technological advances.

 

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