We already know that digital ad spending is set to reach record numbers in 2016, but it’s surprising how much it’s going to take over traditional means, like search ad spending.
A new report from eMarketer suggests that, across the categories of video, sponsorships, rich media and “banners and other” will make up for nearly 50 percent of digital ad spending, to the tune of $32.17 billion. Out of all those categories, “banners and other” appears to be the big one, thanks to various native ad types and social media-related programs.
The report, titled US Digital Display Advertising Trends: Eight Developments To Watch For In 2016, also points out that one in five dollars for digital in 2016 will go towards that specific category, while video will have its own significant number, to the tune of 14.3 percent – up from 12.8 percent the previous year.
Rich media will also play a part, though it really depends on growing adoption of “out-stream” and in-feed video ad formats, according to the report. Video will see an increase with publishers looking for more high-value in-stream video ad inventory, with outlets such as Twitch being looked at with their abundant audience counts.
Desktop appears to be the biggest receiver of these video ad dollars for the year, accounting for 57.5 percent of an overall $9.59 billion in spending. However, there will also be a good amount going towards tablets and smartphones. 77.5 percent of the overall $22.58 billion going towards banners, rich media and other formats will be directed towards such devices. That’s $17.5 billion.
What’s more, spending will continue to rise over the next few years. Display-based ads will show the highest growth, increasing from $21.07 billion in 2014 all the way to $46.69 billion. Meanwhile, Search will be close behind, and other formats are showing positive signs as well – though mobile messaging, it seems, will see a decrease in spending, based on the chart below.
Mobile will see the biggest growth in numbers over the next few years, getting as high as $65.49 billion by 2019 – over three times its $19.15 billion back in 2014. Display will increase over four times its $9.65 billion in 2014, going to $33.70 million in five years’ time. One noticeable item, however, is how little Desktop will improve. In fact, by 2019, it’ll show a drop-off, down to $28.21 billion – a drop of over $2 billion.
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