Online Ad Spending Growth Slows for Entertainment Companies

Most ad industry professionals understand that digital is taking a larger piece of the advertising budget. But what they might not get is how the projected spending increases over the next 5 years vary from one industry to another. Emarketer analysts have developed their own estimates by industry and their projections may surprise some people.

The top spenders in online for this year will likely be the same four years out. The following list shows the online ad spending for this year (and 2016) for the top 4 industries:

  •  Retail $9.48 billion ($13.54 billion)
  • Telcom $6.51 billion ($9.92 billion)
  • Financial services $4.74 billion ($6.82 billion)
  • Automotive $4.35 billion ($7.44 billion)

Other industries also spend significant sums on online advertising. In a recent post, eMarketer analysts argue that the line between the entertainment and media sectors is blurring. Taken together, enterprises in this sector will count for 7% of all online ad spending or $3.26 billion in 2013. Advertisers in this sector are clearly using online marketing but their growth rates over the next several years diverge. Media company digital ad spending will rise by 14% which is about average over the 5‑year period studied by eMarketer. On the other hand, entertainment companies will only increase their digital ad spending rate by 7.7%. This lower than average rate is attributed to the difficult time entertainment companies face as they continue to transition to digital delivery methods. Once entertainment marketers solve the challenges of distributing content digitally and roll out a business model to support their costs, their rates of increase in digital ad spending should improve.

[Source: Marketers Seek New Models to Grow Media and Entertainment. Emarketer​.com. 9 Jul. 2012. Web. 15 Jul. 2012] 
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.