Digital Advertising Set to Outpace TV Advertising in 2017
Digital media has been rapidly growing year over year. This year in fact will mark a milestone for digital advertising as it is expected to overtake TV for the first time. According to eMarketer, “In 2017, TV ad spending will total $72.01 billion, or 35.8% of total media ad spending in the US. Meanwhile, total digital ad spending in 2017 will equal $77.37 billion, or 38.4% of total ad spending.”
Another report by the website Visual Capitalist also projected digital advertising to outpace TV advertising in the next few years. As consumers are becoming more digital and mobile, sites such as YouTube, Twitter, Netflix, Hulu, and Amazon Prime Video are replacing traditional television news, programs, and entertainment.
With this massive shift in how people now consume media, advertisers must find other ways to reach and influence today’s consumers. According to Visual Capitalist, Google and Facebook are the media sites of choice, both dominating the digital advertising space with a combined share of 57.6%. According to the research, “Nearly .60¢ of every dollar spent in the space goes to Google and Facebook. While these are the top two companies who have the most share of online advertising, it is Google that dominates everyone with 41%.”
Digital Advertising Stats & Figures
- Native ads are viewed 53% more than banner ads. (HubSpot)
- 32% of consumers said they would share a native ad with friends and family, versus 19% for banner ads. (Source: ShareThrough)
- Native ads that include rich media boost conversion rates by up to 60%. (Source: Social Times)
- Users who are retargeted to are 70% more likely to convert. (HubSpot)
- Programmatic advertising currently represents nearly two-thirds (62%) of the digital display advertising marketplace (online, social and mobile) and will grow to 82% by 2018. The size of the programmatic marketing is expected to more than double over the next three years. (MediaPost)
- A series of studies by Nielsen discovered that brands can experience a return of almost three dollars in incremental sales for every dollar spent in online advertising that has been delivered using purchase-based information. This was based on more than 800 studies over the past seven years in which Nielsen collaborated with more than 300 CPG brands and 80 companies to measure the correlation between online advertising and offline consumer purchases.
The History of Digital Advertising
Digital advertising has come a long way since the first banner ads that were introduced to the web in 1994. According to Wired Magazine, the company HotWired launched banner ads from 14 companies. Each banner ad was 468 pixels wide by 60 pixels deep. And legend has it that the very first one of these ads was from AT&T. The ad asked, “Have you ever clicked your mouse right HERE? You will”. And digital advertising was born.
Check out this great timeline on the history of digital advertising
(image source: adweek)
Digital advertising today is now more sophisticated, personalized, and relevant. Consumers spend more time online than ever before and digital advertising offers an ideal way to reach multi-device, multi-channel consumers. Marketers are also able to target consumers with laser-focused precision as never before. Brands are no longer limited to just demographics and firmographics but can target the exact audience most likely to purchase based on thousands of lifestyle, personality, behaviors, and purchase intent segmentation variables.