It might seem like every digital ad you see is coming from a telecommunications enterprise, but other industries spend significantly more on this form of marketing. Retailers, financial services companies and auto makers are the digital advertising leaders. Emarketer research also shows that that businesses in these industries spend most heavily on direct response campaigns.
Media companies that are selling digital formats should be promoting their inventory to retailers. These businesses account for 22.3% of all digital ad spending or a total of $9.5 billion annually. Over 64% of retailer digital promotions, amounting to $6.13 billion, are in the direct response format. The next closest category in online spending is the financial services sector which accounts for 12.4% of all digital advertising. These vendors allocate 62% of their promotional effort to direct response.
It’s fascinating to see the differences in other verticals. For example, nearly 64% of entertainment marketer spending, a total of $1.96 billion, goes to branding. Similarly, CPG vendors spend 63% of their annual $3.53 billion digital efforts on branding. The sector with the highest direct response effort is travel at 73%. Other industries, such as telecommunications and healthcare and pharmaceutical, split their budgets more evenly between branding and direct response campaigns.
Emarketer analysts note that they expect marketer investment in online and mobile paid media to rise to $62.83 billion by 2017. Not every industry will move from traditional to digital marketing at the same pace but most marketers are increasing their digital outlay. This year, the digital portion of marketer spending will be 25% of the total. What level of digital allocation are you recommending to your clients?
To learn more about consumers who look at online advertising, such as Digital Display Advertising Responders, check out the AudienceSCAN report available on the Research Store at ad-ology.com.