As the digital landscape continues to expand, more companies are beginning to increase their online advertising spend. This can be seen across the board, from retail and consumer products to automotive and travel. Looking for a deeper analysis on the subject, eMarketer did some research, which revealed some interesting information.
Among all the industries increasing ad spend, the media and entertainment industries have continually proven to be one of the fastest growth markets. In fact, ad spend is expected to grow 24.3% in 2018 and another 21.5% in 2019. Currently, ad spend in these areas accounts for $11.97 billion and it’s on track to reaching $14.53 billion next year. So is this growth notable? Notable is a bit of an understatement, because media and entertainment will soon outpace all other industries when it comes to year-over-year growth.
But who are the largest spenders currently? Retail, automotive, and financial services – in that order – account for the current largest spenders. Media and entertainment together represent the fourth on the list. While they’re winning on growth, there’s still some catching up to be made for media and entertainment to reach the top of the ad spend ladder.
It’s no surprise that digital ad spend is increasing, but what formats are companies choosing to invest in? Display, search, and video advertising rank supreme, at least in media and entertainment. These formats are expected to grow dramatically in the coming year. Even with the threat of unsafe environments for brands, companies are setting stricter guidelines, keeping a harsher eye on progress, and pushing hard to deliver their content in these formats. The spend on video advertising specifically will increase at 24.2%, which is an above-average rate. In fact, video accounts for at least one-third of display ad spend this year, and will be primarily purchased via programmatic channels.
Looking at mobile, ad spend here will increase by at least 30% for each and every industry, just in 2018! Mobile ad spend in media accounts for 71.8%, compared to desktop which holds a 28.2% share. Mobile ad spend in entertainment accounts for 73%, with desktop accounting for 27.1%.
No matter your industry, digital advertising has become an essential to tell your story, reflect your brand, and ultimately grow your business. But it’s important to stay on top of what consumers are looking for in terms of ad format so you can ensure better engagement and better business results.
About the Report
eMarketer’s U.S. digital ad spending by industry estimates are updated twice a year. This report is a culmination of 60 interviews and over 160 metrics from 16 sources, including macro-level economic conditions, historical trends of the advertising market, revenues from major ad publishers, consumer device usage trends, and more.
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