Consumers more willing to put up with ads than pay for content.
Though digital consumers sometimes bristle at the presence of advertisements, they are much more willing to accept those ads than pay for content. A study by the Yankee Group found that only 31% of smartphone owners and 46% of tablet owners would be willing to pay for even a moderately priced ($0.99 to $2.99) upgrade to an app, while 67% of smartphone owners and 73% of tablet owners would be willing to engage with advertising to view the same content for free.
Despite questions, growth expected for native ads on social media.
BIA/Kelsey expects native advertising on social media to grow more quickly than display advertising over the next few years, becoming a $4.57 billion market by 2017. Despite this optimism, some doubts remain for both agencies and consumers. Roughly a third of agencies believe it is too early to tell whether native advertising is more effective than conventional ads, and many Internet users think native advertising -- with its integration into web content -- can be misleading.
Facebook reportedly set to launch autoplay video ads.
The Financial Times has reported that Facebook is preparing to launch video ads that play automatically on user feeds. These ads may prove controversial with users and advertisers alike. Facebook reportedly plans to charge advertisers whether or not the user has activated the audio for the ads.
Mobile helps drive strong advertising growth for Facebook.
Facebook's first quarter earnings report showed advertising revenue climbing by 43% year-over-year. Since advertising represents 85% of Facebook's total sales, this was instrumental to the firm's 39% increase in total revenue. Of particular note was the rise in mobile ad revenue, which is now about 30% of advertising sales. Mobile represented just 23% of ad revenue in the fourth quarter of 2012.
Strong mobile commerce growth could grab 25% of total U.S. e-commerce by 2017.
Mobile commerce is expected to grow by 56.5% this year and post double-digit growth rates in each of the subsequent four years to reach a U.S. total of $108.56 billion, according to eMarketer. This growth would drive U.S. mobile commerce from 11% of total digital sales last year to 25% in 2017.
The FTC clarifies consumer consent for automated text messages.
The FTC has ruled that automated text messages from businesses to consumers fall into the same category as auto-dialed telemarketing calls, and thus are subject to the same restrictions. The FTC outlines what constitutes consent, and how consent may be requested -- note that an existing business relationship does not count. The new guidelines are slated to go into effect on October 16, 2013.
Female customers may prefer to browse online rather than in-store.
A March 2013 survey of 2,000 female Internet users in the U.S. found that only 6% primarily research products by visiting stores. SheSpeaks and Lippe Taylor found that 71% search the web on a PC or laptop as their primary means of product information, another 18% consult the web via smartphones and tablets, and the remaining 5% mainly ask for recommendations.