There’s been a steady rise in digital ad spending in recent years, and for the first time, digital ad spend is projected to overtake traditional media in 2019. Let that sink in. Companies around the world are now putting more money into online marketing channels than they are into direct mail, television, radio, billboard, and print ads combined.
Between the sharp increase in digital video advertising and the fact that television ad spending has dropped for the second year in a row, it’s evident that the rise of digital media isn’t slowing down any time soon.
In this post, we’ll discuss the current trends and shifts in the advertising market, including the strength of video ads and how small businesses can leverage their media online to generate cost-effective results.
The Steady Rise in Digital Ad Revenues
According to a report published in May 2018 by the Interactive Advertising Bureau (IAB), online advertising revenues have always been on the incline. However, over the last four years, the trend has accelerated significantly.
The IAB annual reports show internet advertising revenues in the United States jumped from $49.5 billion to a record $88.0 billion in 2017. This includes a staggering $49.9 billion in revenues on mobile devices, a 36.2% increase from 2016.
These numbers reflect a range of modern changes in society. With the internet integrating into more facets of our lives and social media becoming a valuable channel for brands to engage customers, companies are steadily trusting the digital sphere to deliver positive results for their advertising budgets.
Breaking Down Digital Advertising Spending in 2018
With the first half of 2018 in the books, marketing professionals are crunching the numbers to get an edge in 2019. Based on the IAB Internet Ad Revenue Half-Year Report, digital revenues topped $49.5 billion in HY 2018, an increase of 23.1%. On mobile devices, revenues totaled $30.9 billion, a 42% increase.
These revenues show the power of mobile ad spending. Not only are online platforms creating a multitude of avenues to reach consumers, but these channels are delivering on their potential, and businesses are seeing real value in their digital spending.
The 5 Biggest Takeaways for Businesses in 2019
The digital advertising industry in the US has sustained double-digit growth for the last eight years. For business owners looking to take advantage of these trends, there is some valuable information you can use to make the most of your digital spending in 2019.
Here are the five biggest takeaways from the IAB 2018 Half-Year Report:
The Key Takeaways for Business Owners
As a business owner looking to make the most of your marketing budget in 2019, there is a lot to learn from the steady increase in digital ad spending.
First, understand that the digital age is only growing, and ignoring online advertising is a surefire way to get left behind. Next, think about your audience’s behaviors, how they are searching for information online, and what you can do to show up when they search. Finally, look for ways to leverage the newest digital platforms for your business to achieve the best ROI for your ad spend.
For more advice on the latest digital trends, you can explore more informative articles here.
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