Digital Ad Spending To Overtake Television In 2016

Digital advertising spending is expected to overtake television this year for the first time. Marketing research firm eMarketer’s ad spending forecast points to U.S. digital ad spending to reach $72.09 billion this year, ahead of television’s $71.29 billion.

“Digital advertising is not only pulling dollars from traditional media, but it’s also creating new advertising opportunities at the local and national level,” says eMarketer Forecasting Analyst Martín Utreras.

Digital advertising is expected to account for 36.8 percent of total U.S. media ad spending in 2016, while television will take 36.4 percent. eMarketer’s research has uncovered a number of factors fueling digital’s growth, with mobile and video playing large roles. Mobile ad spending is expected to reach $45.95 billion this year, a 45-percent increase, and is forecast to account for one-third of U.S. ad spending by 2019. Video is predicted to account for $10.3 billion in ad spending in 2016, 14.3 percent of digital ad spending. eMarketer says that video will account for 15.1 percent of digital in 2017.

“Programmatic is making a lot of the inventory more accessible, not just to larger marketers but also to local and smaller advertisers,” said Utreras. “At the same time, the focus of the industry on viewability, native and better measurement is driving more dollars and delivering better results.”

eMarketer expects display to be the top digital advertising format through 2020, with $34.56 billion in display ad spending this year. Search is just behind at $33.28 billion. Facebook will capture the largest share of display spending in 2016, taking in $11.93 billion or 34.5 percent of the category. Google, in second place, will account for $4.79 billion or 13.8 percent.

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