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According to eMarketer, spending on digital advertising in the United States will, for the first time, exceed traditional advertising spending, a decisive reversal in the way advertisers budget for their resources and highlight the rise in popularity of advertising. digital media. attract the attention of consumers.
EMarketer expects companies to spend nearly $ 130 billion on digital ads, compared to about $ 110 billion in traditional ads, or about 54.2 percent of the advertising market, compared to 46.8 percent. respectively. According to the firm's forecasts, spending on digital advertising will continue to exceed that of traditional advertising. According to estimates, digital ads will capture more than two-thirds of all ad spend by 2023.
The increase in digital advertising dollars will come in part from the sharp drop in major print ad formats, including directories such as the Yellow Pages, whose ad spending will fall by 19%, and print versions of newspapers. and magazines where these expenses are expected. eMarketer said the number of its customers would decrease by about 18%. Advertising spending for television will drop by 2.2% this year, to about $ 71 billion, said eMarketer, mainly due to the absence of elections and major sporting events, such as the Olympic Games or world Cup.
"The constant attention of consumers for digital platforms has reached a point of inflection among advertisers, forcing them to go digital to look for the extra earnings in terms of reach and revenue that disappear in the advertising in traditional media, "said Monica Peart, Director of eMarketer's Visual Forecasts, a statement.
The two leading digital advertisers in the US – Google and Facebook – are expected to retain their dominant advertising capital, with the technology giants' combined advertising revenue expected to hold about 59% of the market, according to forecasts. EMarketer predicts that Google's share will decrease slightly from 38.2% to 37.2%; Facebook's share is expected to remain "virtually unchanged" and increase by less than half a percentage point, from 21.8% to 22.1% this year.
While Facebook has been shaken by scandals and is negotiating with the Federal Trade Commission about a multi-billion dollar fine related to its privacy practices, the increase in the share The company's market will be driven by Instagram, said eMarketer. "There is a high demand for ads in Instagram Stories, and Instagram still enjoys the perception that it is less affected by the challenges Facebook faces," said Debra Aho Williamson, an analyst at eMarketer, in a statement. communicated.
Amazon, Microsoft and Verizon complete the top 5 digital advertisers. These last two should lose ground in terms of advertising expenses.
The Amazon advertising sector, the third largest in the United States, is expected to grow by more than 50% in 2019, representing a total of almost 9% of the digital advertising market.
"The platform is rich in buyers' behavioral data for targeting and allows access to real-time purchase data," Peart said. "This type of access was previously available only through the distribution partner, to be shared at its discretion." But with the Amazon's sponsored ad, the Marketers have unprecedented access to "shelves" where consumers shop. "
(Jeff Bezos, chief executive of Amazon, owns the Washington Post.)
Last week, Amazon canceled its plans to build a second headquarters in New York after the company encountered resistance from local politicians, unions, and community activists who had criticized the project as a unfair agreement. Opponents of the plan have expressed concern over the rising cost of living, deteriorating infrastructure and preferential treatment of companies such as Amazon valued at $ 800 billion and benefiting from close to $ 3 billion. billions of tax subsidies for the planned expansion.
EMarketer said it has adjusted its guidance upward for Amazon following the company's latest earnings report, "putting it on track to reduce the gap with the number 2 Facebook" in the market for digital advertising.
According to eMarketer, more than two-thirds of digital advertising spending this year will be spent on mobile ads, for a total of more than $ 87 billion.
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