Having looked at the global figures for digital marketing and the share of digital advertising in the total advertising spend, in this section we would study the break-up of global advertising spend by format, as well as digital advertising numbers for the largest spending country, US, along with figures for US digital ad spending share by industry.
In Fig. 10.3, Magna Global (Dec 2014) estimates $ 80 billion to be spent on search advertising around the world in 2015, which makes it the largest ad spend format followed by display marketing at $31 billion. By 2019, a projected $118 billion will be spent on search marketing which would still be the largest category while display is projected to grow only to $35 Bn. In comparison, social and video are two categories which will witness the strongest gains, with video starting from a much smaller base. Online and mobile video are slated to become increasingly popular.
Figure 10.3 Global Digital Ad Spend by Format (Magna Global)
In Fig. 10.4, we move on from global numbers to digital ad spending data specific to the US (since it has the largest digital ad spend of all countries). According to eMarketer, search continues to be the leading digital ad spending format, although its share has dropped in 2016 (compared to 2010) as the shares of rich media, sponsorships, and video increase.
Display ad spending, which includes banner ads, video, rich media, and sponsorships is expected to rise to 45.6 per cent of the total in 2016. Search’s share of total digital ad spending has decreased from 47.1 per cent in 2012 to 44.2 per cent in 2016. Between 2010 and 2016, classifieds and directories category rose a bit, lead generation augmented by around 70 per cent while mobile messaging remained almost stable showing only a slight increase.
In Fig.10.5, we look at the US digital ad spending share based on industry type and, as evident, retail leads the pack with a good stable share (around 22 per cent) which is expected with the global rise of ecommerce industry. By 2017, the US digital retail industry is expected to grow to $ 13.5 billion, representing a 10.5 per cent compound annual growth rate (in comparison to 2013).
eMarketer reports that the retail industry will keep its lead during the four-year forecast period, but lose a small portion of its share of total US digital advertising dollars, dropping from a 22.3 per cent share in 2013 to 22 per cent share in 2017.
Figure 10.4 US Digital Ad Spend by Format (eMarketer)
Sources: eMarketer, September 2012
Note: This includes advertising that appears on desktop and laptop computers as well as mobile phones and tablets on all formats mentioned; data through 2011 is derived from IAR/PWC data.
Figure 10.5 US Digital Ad Spending Share by Industry (eMarketer)
Sources: eMarketer, June 2013; confirmed and republished in August 2013
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