Digital ad spend is growing rapidly, soon surpassing TV for the first time, according to the latest figures from eMarketer. US digital ad spend is projected to reach $77.4bn in 2017, or 38.4% of total ad spend, compared to $72bn or 35.8% for TV ads.
Total media ad spend
eMarketer says it has lowered (2.5%) projections for TV ad spending since its last report (4.5%). It predicts TV ad spend to grow at an average rate of 2% a year, falling to just 32% by 2020.
Martín Utreras, Senior Forecasting Analyst, eMarketer, says:
“We still expect positive growth for TV ad spend, driven by political advertising and the summer Olympics. However, we see more ad dollars flowing to digital as a way of optimizing spending in what may be a challenging economic year.”
Meanwhile, mobile will represent 63.4% of all digital ad spend in the US, or $52.8bn by 2017. Digital video on mobile is increasing at an average rate of $1bn per year to $5.4bn next year.
Mobile ad spend continues rapid growth
“As consumers continue to increase engagement with mobile devices for daily activities and content consumption, marketers will further integrate all marketing activities – including advertising – to the mobile category.”