Consumer Tech Purchases Fuel More Ad Campaigns

U.S. consumers may be holding back when they’re spending on branded grocery items or vacations, but they are showing a tablettvhuge appetite for technology products, especially ones that give them mobile freedom. This demand for the latest, coolest products is driving big increases in marketer advertising. It’s likely this spending will continue through the end of this year.

Earlier this year, Gartner reported that early adopters are driving the trend to invest in mobile devices. Mobile phones have a 94% household penetration rate with consumers spending an average of $289 on the handsets. Tablets have made their way into 17% of households with an average ticket price of $503. Dedicated e‑book readers and netbooks aren’t far behind with a 14% penetration rate. Consumers spend about $185 on e‑book readers and $462 on netbooks.

The consumer interest in tech products has increased competition between marketers who have rolled out their own versions of hot devices and services like smartphones, operating systems and apps. Nielsen noted that the tech sector spent $723 million on first quarter advertising in 2013. This was a 30% increase over the same period in the previous year. In addition, the increases took place when marketers in many other industries were cutting back.

While Microsoft was a big marketer in the first quarter, it’s likely Google will be a big spender as the year winds down. The company has rolled out its Moto X smartphone and will be supporting the launch with a significant ad campaign. Big sums will also be spent by videogame console marketers who will be introducing upgraded models by year end.

To learn more about specific consumer groups that are buying tech products, such as e‑reader shoppers, check out the Audience Interests & Intent Report available at the Research Store on ad​-ology​.com.

[Sources: Gartner Says Mobility is Reshaping Consumer Gadget Spending and Behavior. Gartner​.com. 14 Mar. 2013. Web. 14 Aug. 2013; Tech turns ad aggressive. Brand‑e.biz. 5 Aug. 2013. Web. 14 Aug. 2013] 
Kathy Crosett
Kathy is the Vice President of Research for SalesFuel. She holds a Masters in Business Administration from the University of Vermont and oversees a staff of researchers, writers and content providers for SalesFuel. Previously, she was co-​owner of several small businesses in the health care services sector.