Retailers to Account for 22% of Digital Ad Spending This Year
Earlier this month, PwC predicted that the U.S. digital ad market will be worth $99.8B in 2018. eMarketer’s most recent forecast is even more bullish and put the digital ad market at $107.3B this year. That’s an 18.7% increase over 2017.
If you’re selling digital, you need to know which sectors are buying the most advertising in this format. Here are the numbers from eMarketer:
- Retail $23.5B
- Automotive $13.57B
- Financial services $13.05B
- Telecom $11.43B
- CPG/consumer products $9.4B
With retail accounting for over 22% of digital ad spending, this sector holds promise for media sellers. eMarketer analysts dove even deeper into the numbers and found that mobile advertising will account for $16.3B of the retail digital ad spend. That’s nearly 70% of the total. With so much competition in the sector, your clients and prospects will need a way to stand out. You can help them explore their options in mobile and digital by running a Digital Audit on AdMall from SalesFuel and sharing the results with them.
It’s also worth checking out the fast-growing categories in digital ad spending. If you’re selling to entertainment accounts, you’re in luck. Between 2016 and 2019, digital ad spending will experience a compound annual growth rate of 17.7 percent. And this year’s total of $5.45B will be trumped by next year’s $6.64B in digital ad spending as concert producers, circuses, and local theater groups try to attract new fans.
Advertisers of computing products and consumer electronics are also ramping up their digital ad spending. Analysts foresee a CAGR of about 16.6% between 2016 and 2019. The total value of the digital ad market in this sector will rise from $8.33B this year to $10.12B next year.
Talk with your accounts about their digital strategy. With spending growing so quickly, businesses need to plan how and where to allocate their digital funds.