Increased investments in digital video, a dominant triopoly, and declines in TV budgets will send US digital ad spending surging by 85% over the next five years
Our friends at eMarketer just released a new report on 2019 Digital Ad Spending packed with interesting facts. Digital marketers will be happy to see that the future looks very bright. Digital spending will hit $129 billion this year, claiming 54% of overall media ad spend. This makes 2019 the first year of digital dominance.
And it gets even better from there.
As you can see from the chart above, digital ad spending will increase over the next five years—up 85% by 2023 to over $200 billion. Meanwhile, traditional media spending will continue its slow decline.
Video is a key driver of strong digital ad spending
In 2019, US digital video ad spending will rise by 20.8% to $36.01 billion. So what’s behind such robust growth? Advertisers are following consumers’ video viewing habits.
- Marketers will spend more than two-thirds of video ad budgets on services like Hulu, Netflix, Amazon and Roku
- Social video is next, with Facebook and Instagram receiving the lion’s share of remaining budgets at 85%
- Twitter is also increasing its share due to recent investments in premium video formats
Digital ad spending is all about display and search
It’s worth noting that social media ad spend is included in display. And Facebook, being the dominant publisher in that fast-growing channel, is chiefly behind the growth.
One thing is clear: digital ad spending is not being driven by some radical new format. Industry stalwarts display and search will get 96% of digital budgets. The remainder is split amongst less popular formats such as lead generation, email, and mobile messaging.