Marketers often complain that one of the challenges of digital advertising is measuring their return on investment. It turns out that accurately measuring how much is being spent on various digital formats is also a challenge. This difficulty is linked to agreeing on the definitions of which types of ads belong in which formats. Given all that, eMarketer has just announced that spending on digital sponsorships is growing.
eMarketer analysts point out that digital sponsorships can take many forms. Marketers are paying for pre-roll video ads, banners, and logo placements under the category called sponsorship. Last year, advertisers spent $1.54 billion on sponsorships and will bump that spending up to $1.88 billion this year. That is a significant 22.1% increase. By 2017, marketers could be spending as much as $3.08 billion on sponsorships. Note that these numbers include mobile platforms. Many other research concerns show mobile sponsorship as a separate category for measuring and forecasting purposes.
The format is especially attractive for digital newspapers and magazines, say eMarketer analysts. These sponsorships, in the form of native ads, do well on tablets, which consumers turn to when they want to read their favorite newspaper or magazine.
Currently, sponsorships make up less than 5% of digital advertising. Analysts believe the spending will fall as more targeted forms of marketing gain favor. But, for now, marketers and media companies are finding sponsorship works for at least some of the ad budget.
Do you agree? Are you allocating any of your digital marketing budget to sponsorships?