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May 18, 2016

Ad Spending by Format

Digital advertising has been very common these days than those other kinds of advertising. Though there are still many businessmen who use traditional advertising but there would be no denying the fact that the most successful companies in today’s world have used digital marketing strategies.

Digital Advertisement vs. TV Advertisement

According to an online report, the Digital Media will surpass the TV advertisements starting next year, 2017. As it was shown in the graph, the estimated and predicted percent of the following media have been prepared. It can be seen that truly the digital media is expanding and growing as the time goes by. Some marketers have been keeping their minds on what is the best kind of advertisement for their products. They must have realized that going to advertise digitally is more than effective that just advertising on televisions.

das1 300x230 - Ad Spending by Format

If those percentages were converted to dollars, this would be something like this:

das2 289x300 - Ad Spending by Format

During the years 2014, 2015 and 2016, there is somehow a small difference between the TV ad spending and the Digital ad spending. There is an approximated amount of $18.85, $9.27 and $1.78 billion difference between those two media respectively. But if one will observe, the TV ad is decreasing and the digital ad spending is increasing.  Hence, it can really be concluded that digital advertising will be even more famous for the years to come.

Digital Ad Spending by Format

Many may wonder why so suddenly the television advertisements have been surpassed by digital ads? There is an explanation to that. According to a statement, as the world today will engage more on the mobile devices and other digital devices for their daily activities then entrepreneurs will make sure that their advertisement will be done through digital technologies as well. It is because many potential customers will most likely use digital devices for their transactions because it is easy and convenient to use.

Digital advertisements come in many formats and these are the Search ad format, Display format, Classified and directories, Lead Generation, Email format and Mobile Messaging.

das3 300x286 - Ad Spending by Format

The table above shows the total amount spent by US to Digital Ad Spending by Format from the year 2014 to year 2019. One can have a hypothesis from the following results. It is possible that most marketers will invest their advertisements on Display format which includes banners, video, rich media and sponsorships than investing on the popular search advertisements and other formats as the year pass by. However, in the display category, investors will most probably invest on “banners and others”. This is a category that includes those native ads as well as ads on the popular networking sites. Video format are also considered to be one of the rising advertisement in the upcoming years. Because of the expanding adaptation of “out-stream” and in-feed video, the amount spent on rich media will also be increasing.

Moreover, some investors still invest in other formats of digital advertising since the total amount it spent and will spend each year have been increasing.

Every entrepreneur should know that in the business world, competition is not a rare case. That is why choosing the right thing to invest is one essential thing in achieving a company’s success.

Sources:

http://www.emarketer.com/Article/US-Digital-Display-Ad-Spending-Surpass-Search-Ad-Spending-2016/1013442

http://www.emarketer.com/Article/Digital-Ad-Spending-Surpass-TV-Next-Year/1013671

 

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