What better way to start the year than by looking at where digital ad spends are going in the next five years. Here at BHIVE we are always building innovative ways to build traffic and leads for our clients. We will be annoucing the launch of our unique digital content distribution system shortly. If you are a digital publisher, this is our invitiation for you to contact us.
Happy New Year everyone! Rod Ponce, Chief Bee
Dollars are increasingly flowing from traditional ads to digital, as strong growth in mobile, video, and social spending continue to change the face of the US media market.
Over the next five years, marketers will especially embrace mobile. Mobile will drive up spending on video, search, display, and social, and propel the migration of ad dollars away from traditional media, including newspapers and magazines.
In this new report, BI Intelligence forecasts spending trends for the major digital ad formats — including search, display, and video — and mobile versus desktop. We also examine trajectories for social ad spending and programmatic ad buying, which cut across digital formats. Finally, we look at how spending on traditional media formats will grow or contract over the next five years, as digital, and particularly mobile, rises.
Here are 7 of the key takeaways from the report:
- Mobile will be the fastest-growing advertising channel and buoy spending on each of the digital formats. US mobile ad revenue will rise by a 26.5% CAGR (Compound Annual Growth Rate) through of 2020.
- Digital-video ad spending is rising faster than search and display. US digital-video ad revenue will rise by a CAGR of 21.9% through 2020.
- Mobile search will overtake desktop-search ad revenue by 2019. Mobile-search ad spend will rise by a 25.2% CAGR, while desktop-search ad revenue will decline during the same period.
- Mobile display ads, including banners, rich media, and sponsorships, will overtake desktop display-related spending even earlier, in 2017.
- Social-media ads, which cut across display and video, are seeing fast adoption. US social-media ad revenue, which includes video and display ads, will grow by a CAGR of 14.9% through 2020.
- The rapid embrace of programmatic ad-buying tools is fueling a dramatic uptick in the share of digital ad spending coming through programmatic channels. Programmatic transactions will be a majority of total US digital ad spend this year.
- Unlike digital, traditional ad revenue will remain flat overall through 2020. Total traditional ad revenue will rise by a CAGR of just 0.4% between 2015 and 2020.