The Shifting Landscape of Digital Ad Spend in B2B Marketing

Understanding where consumers spend their time is crucial for effective marketing. This is particularly important in the B2B sector, where targeted advertising can significantly impact lead generation and sales. As mobile devices and connected TVs (CTV) become more prevalent, marketers must adapt their strategies to align with these trends. This blog post explores the current trends in digital ad spend and provides insights on optimizing marketing efforts in the B2B space.

ONGOING TRENDS IN MOBILE DEVICE USAGE

Mobile devices dominate digital consumption, with consumers spending a significant portion of their time on smartphones and tablets. According to recent data, over 90% of time spent on mobile devices is in-app, and consumers typically use about 20 apps regularly. This highlights the importance of in-app advertising for B2B marketers.

Key Facts:

• US adults spend an average of 3 hours and 6 minutes per day on mobile phones.
• Mobile ad spending accounts for $0.51 of the US digital ad spend per hour spent with digital per adult.
• In-app advertising is crucial, as it captures the majority of mobile usage time.

For B2B marketers, identifying the key apps where their target audience spends time and concentrating ad dollars there can yield significant returns. Mobile advertising offers high engagement rates and the ability to deliver personalized content, making it a powerful tool for reaching potential clients.

Connected TV (CTV) and Its Growing Influence

Connected TV (CTV) usage is on the rise, with US adults spending an average of 2 hours and 15 minutes per day on CTV, an 8.3% increase year-over-year. Despite this growth, CTV is currently under-indexed in terms of advertiser spend due to a shortage of inventory and high costs. However, this is expected to change as streaming platforms like Netflix and Disney+ expand their ad inventory and free ad-supported TV (FAST) channels such as Tubi and Pluto TV gain popularity.

Key Facts:

• CTV accounts for $0.13 of the US digital ad spend per hour spent with digital per adult.
• The increase in CTV usage presents a unique opportunity for targeted advertising in a less cluttered environment.

For B2B marketers, CTV offers the chance to reach a highly engaged audience with targeted messages, enhancing brand awareness and driving conversions.

Digital Audio: An Underutilized Channel

Digital audio is another channel with significant potential for B2B marketers. US adults spend an average of 1 hour and 24 minutes per day with digital audio, yet it has the lowest annual ad spend per user of any medium, at $36.05. This under-indexing represents an opportunity for advertisers to tap into a relatively untapped market.

Key Facts:

• Digital audio ad spend is significantly lower than digital video, which is over $500 per user.
• Hours spent listening to digital audio on phones and in cars represent a valuable opportunity for advertisers.

Digital audio advertising can effectively reach professionals during their commutes or while multitasking. By creating engaging audio content and strategically placing ads on popular podcasts and streaming services, B2B marketers can capture the attention of their target audience in a non-intrusive manner.

The Role of Apps in Mobile Advertising

With over 90% of time spent on mobile devices being in-app, understanding which apps your target audience uses is crucial for effective advertising. Consumers typically use about 20 apps regularly, making it essential for B2B marketers to identify and focus on these key apps.

Key Facts:

• In-app advertising captures the majority of mobile usage time.
• Identifying key apps for your target audience can maximize the effectiveness of ad spend.

By concentrating ad dollars on the apps where their audience spends the most time, B2B marketers can achieve a higher return on investment and better engagement rates.

Tablets: A Niche but Valuable Device

Tablet usage among US adults is expected to peak this year at 54 minutes per day before slipping in 2025. Although this is only a quarter of the time spent on mobile phones, tablets should not be disregarded as an advertising platform.

Key Facts:

• Tablet usage is expected to peak at 54 minutes per day in 2024.
• Tablets offer a unique opportunity for targeted advertising, especially in specific industries.

For B2B marketers, integrating tablet advertising into a broader strategy can help reach a niche but valuable audience, particularly in industries where tablets are commonly used.

Exploring Untapped Channels

Emerging advertising channels, such as automotive consoles, present new opportunities for B2B marketers. While the advertising ecosystem surrounding these channels is still underdeveloped, there is active work to make them more programmatic and usable for advertisers.

Key Facts:

• Automotive consoles and other emerging channels are still in early development stages.
• Advertisers should keep an eye on developments in these channels and consider early adoption.

By exploring and experimenting with untapped channels, B2B marketers can stay ahead of the curve and reach new audiences in innovative ways.

Conclusion

As the digital landscape continues to evolve, B2B marketers must stay informed about where their target audience spends their time and how to effectively allocate their ad spend. By focusing on mobile devices, CTV, digital audio, and emerging channels, marketers can optimize their strategies and achieve better results. The key is to follow your audience and adapt to their changing behaviors, ensuring that your marketing efforts are always aligned with their preferences and habits.