Marketers are Spending More on Online Display than TV

BY Rachel Cagle
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For the first time, according to WARC’s Television in the U.S. report, in 2019, marketers spent the same percentage of their advertising budget (27.6%) on online display as they did on television. The report also estimates that online display ad dollar percentages will significantly overtake TV. In 2020, WARC predicts that online display will reach 29.4% of ad spend while TV ad spend will fall to 26.4%.

This isn’t a sudden occurrence. Since 2014, online display ad spend percentage has been rising steadily, by nearly 20%. Meanwhile over the last six years, TV’s hold on its ad spending percentage has been wobbling and falling from its previous perch of 40%.

WARC also found that video’s part in online display has been steadily on the rise. Since 2012, it has gone from 14.1% to 35.1%.

Why is this change happening? You may think it’s the rising popularity of digital everything in this day and age, and that may contribute to online display’s rise. However, WARC credits online display’s growth to two aspects. The first is its ability to better target and personalize for its intended audience. The second, the fact that the cost for online display is more manageable since its cost per thousand has only risen from $7.46 to $7.95 since 2012.

Where your client’s customers may encounter online display ads and other forms of digital advertising varies greatly. Women’s Clothing Shoppers, for example, according to AudienceSCAN, like to play online games (47.4%) and research health and medical information online (43.1%), while Sporting Goods Shoppers prefer to use the internet to check sports scores (61.6%) and make online food orders (46.9%). What types of websites will your client’s customers be most likely to see online display ads? Look up their audience profile on AudienceSCAN on AdMall by SalesFuel.