In advertising, you go where the people are. At one time that was radio, which had a huge national audience. Then along came TV, which reached an even larger audience and became the top advertising medium. Now we’re in the middle of another major advertising shift.
According to the new ad spending forecast from eMarketer, digital advertising is on the cusp on taking the advertising crown from TV. Next year, for the first time ever, advertisers will spend more on digital ads than they will on TV ads. This is without a doubt a notable milestone all organizations should be paying attention to.
In today’s post we’ll provide some key stats from the eMarketer forecast, as well as some of the key advantages of digital advertising for organizations.
8 Stats Showing the Advertising Shift from TV to Digital
The transition from TV advertising to digital advertising as the top area of expenditure by advertisers will see a major milestone in 2017 when the two switch positions for the first time.
Here are some key stats from eMarketer’s U.S. ad spending forecast:
- $72.01 billion will be spent on TV advertising in 2017 (or 35.8% of all U.S. media ad spending)
- $77.37 billion will be spent on digital advertising in 2017 (or 38.4% of all U.S. media ad spending)
- In 2014: TV accounted for 39.1% of all U.S. ad spending vs. 28.3% for digital advertising
- In 2020: Digital will account for 44.9% of all U.S. ad spending vs. 32.9% for TV advertising
- 15.4% increase in digital ad spending in 2016 over the previous year (to $68.82 billion)
- 38% increase in U.S. mobile ad spending this year (a monetary increase of $43.6 billion)
- 63.4% of total digital ad spending in the U.S. will come from mobile this year
- By 2020, TV ad spending’s share will drop below one-third of total media ad spending for the first time in the U.S.
Why Are More Dollars Going to Digital Advertising?
While TV has lost the huge viewership numbers it once had with the rise of the Internet and streaming entertainment, advertisers have also come to better understand the unique advantages of digital advertising. Here are four of them:
With digital advertising you can have a campaign up and running in 24 hours. You can tweak or change ads just as quickly. The flexibility and agility of digital advertising is a huge advantage when it comes to maximizing ROI.
Digital advertising offers in-depth audience targeting that TV simply can’t touch. With search engine and social media advertising, you can target ads by geographic location, demographics, interests, and much, much more.
As noted above, mobile advertising is exploding. Why? Because more people are using mobile devices to access the Internet—and take ad-inspired actions. Digital advertising enables you to reach people wherever, whenever, via mobile. (View some eye-opening mobile advertising stats)
Along with advanced targeting, digital advertising offers a ton of analytics to see who specifically your ads are reaching and who is responding to them. These enable advertisers to quickly make adjustments to increase effectiveness.