Display & Search Ad Spend to Grow by 53% from 2014-2017
Overall ad spend across North America is on the rise. Growing at 4.7% in 2014 and 3.6% in 2015, this growth rate is expected to continue throughout 2017. North America showed an overall stronger growth than competing marketing in Western & Central Europe. Rising 11.9% total from 2014 ad spend of $176 Billion in the United States, 2017 ad spend is projected to reach $197 billion.
Digital Display Ads Eclipse Paid Search
2016 marks the first year that display ads are expected to outperform search spending in the United States digital area. Search has risen since 2014 from $23.44 billion and expected $40.6 billion by 2019. Display ads started slower with $21.07 billion in 2014 and are expected to reach $46.69 billion by 2019. Total digital ad spend will rise from $46.69 billion to $93.70 billion over the same 5 years. This growth in display advertising may be driven by an uptick in video advertising, paid social media ads, and the rise of programmatic buying.
While desktops computers (including laptops) have traditionally been the biggest target of digital advertising, the climate is expected to change. Mobile ad spend in 2014 totalled $19.15 billion with $9.65 dedicated to display and $8.72 billion dedicated to search. In 2019 mobile ads will total $65.49 billion with $33.70 billion in display and $28.25 in search. Desktop ads totalled $30.45 billion in 2014 with $14.72 billion in display and $11.42 in search. This is expected to change by 2019 as mobile is projected to take a 70% share of advertising dollars and desktop is projected to drop to $28.21 billion. Of this $28 billion, $12.35 will be dedicated to search, while $12.99 will be allocated to display.
Internet Advertising To Exceed Global Projections
The internet is also expected to overtake TV in global ad spend for 2016. Across key markets, Warc predicts a rapid growth of 12.7% in 2016, rising to $153.1 billion. In contrast, television spend is expected to drop by 0.9% to $149.4 billion.
2016 forecasts show internet ad spend to have the highest price increase by medium globally (globally refers to 12 major markets including Australia, Brazil, Canada, China, France, Germany, India, Italy, Japan, Russia, UK and US). With internet ads expected to show a 12.9% price increase, the next runner up expects only a 3.3% growth in cinema ads. For comparison, radio, newspaper and magazine ad prices are all expected to decrease.