In a recent interview with NPR, media analyst John Carroll of the Campaign Outsider Blog shared his insights and projections about the growth of digital ad spending. Citing a report from eMarketer, Carroll explained that this year, for the first time ever, digital ad spending will surpass traditional ad spending by an estimated $20 billion. In fact, digital ad spending is projected to grow to $130 billion (a 19% increase) by the end of 2019, while traditional ad spending is projected to see an 11% decrease, reaching just $110 billion.
When it comes to digital ads, Carroll points out that two thirds of the ads covered in the projected 2019 spend will appear on mobile devices. With users spending an average of four hours per day on their cell phones, it’s clear why.
This projection isn’t unique to 2019: eCommerce anticipates that digital ad spending will continue to rise over the next few years, reaching as high as $172 billion by 2021, whereas traditional ad spending will continue to decline as low as $104 billion by the end of that same year. Based on this trajectory, it’s estimated that digital will represent two-thirds of all ad spending by 2023.
So, why is this important for marketers? Well to start, it proves that digital advertising is the real deal. With digital ads, each campaign can be highly targeted and delivered to a specific audience exactly where and when they are consuming their content.
Despite the infinite landscape the internet affords us, 68% of all digital ad spend is condensed to just three sites: Google (37%), Facebook (22%), and Amazon (9%). With so many ads being placed on these three platforms, marketers must be strategic in order to make budgets work in the most efficient ways possible.
Depending on your marketing goals, there are different ways you can structure your digital ad campaigns to help achieve those goals and, in some cases, even automatically optimize your campaign in real-time. Having a dedicated team member to monitor your various campaigns is a great way to make sure everything runs per plan and delivers results as intended. Most importantly, this person is able to identify when—if ever—a drastic change needs to be made to your campaign, and can quickly address it rather than creating an issue at the end of a campaign.
Since digital ad platforms can be crowded, having the right creative is essential for reaching your desired goals. Clear, concise messaging, short video ads and .gif display banners are just a few ways brands are successfully standing out in the digital space.
Recently, the industry has seen a rise in native advertising, an ad form that is attractive to many brands because it doesn’t necessarily look like paid advertising . An alternative to display banners and screen-takeovers, native advertising looks like an article or piece of editorial that is organic to the site it’s placed on. The goal of a native ad is to appear like another interesting part of the website or platform that your target is visiting.
No matter which tactics you employ or the advertising budget you may have, having a digital marketing strategy—and someone to carefully implement that strategy—is key. With this trend undoubtedly on the rise, it’s time to take digital seriously if you want to successfully reach your target audiences.
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