Tag Archives: ad spend

Almost Two Thirds of Ad Spending Is Digital

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Source: Statista

In 2023, digital advertising in the United States will for the first time make up more than two thirds of total advertising industry spending. According to Statista Advertising & Media Outlook, the share of digital ad spend is expected to reach 61 percent this year.

The paradigm shift from analog to digital runs through most aspects of modern society and advertisement has been on the forefront of the change. Losses in circulation and the reach of print media, as well as relevant age groups turning away from broadcast TV, is making advertising through traditional avenues increasingly unattractive. At the same time, digital ad formats are diversifying.

According to Statista estimates, total ad spending will reach almost $590 billion in 2020. Compared to the previous year, spending is expected to be down around $10 billion because of the coronavirus pandemic.

Infographic: Almost Two Thirds of Ad Spending Is Digital | Statista

25 Percent of Global Ad Spend Goes to Google or Facebook

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Source: Statista

Over the past two decades, advertisers have gradually shifted their budgets away from traditional media (e.g. TV, newspapers and magazines) towards online ads. The rise of the smartphone has only accelerated this shift, as smartphones have fundamentally changed the way that people consume content. Ad dollars have always followed eyeballs and thus it doesn’t come as a surprise that mobile ad spending is currently growing a breathtaking rate.

One consequence of the shift towards online advertising is the fact that fewer companies command a larger share of advertising dollars spent. In fact, two companies, you may know them by the names of Google and Facebook, are so dominant in the online world that they account for more than 60 percent of global online ad revenues. According to advertising research company WARC that means the market leaders in search and social media will pocket 1 in 4 dollars spent on media advertising worldwide this year.

Ad Spend Infographic