Display Ad Spending Expected to Overcome Search Ad Spending This Year


2016 is the year for digital display advertising, according to the latest research from eMarketer. For the first time, display ad spending is expected to overtake search ad spending, as display spending will grow by 47.9% this year.

display advertising

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Display ads, according to this report, include the following types: banners, video, sponsorships, rich media, native and social. eMarketer’s report implies that this shift indicates where consumers focus most of their time — on mobile devices and engaging with video marketing. While users have not altogether abandoned search (search spending is still expected to see a 10% growth in 2016), they are simply utilizing resources other than search for their needs, making search ads slightly less effective. For example, someone looking for a specific product may first go to Amazon instead of searching Google.

Marketers will take note of this trend and begin to funnel their resources toward more specific targets in 2016. Video marketing will see an influx of spending as marketers capitalize on the popularity of in-feed video on sites like Twitter and Facebook. Spending is projected to increase from 12.8% in 2015 to 14.3% this year. According to eMarketer, this means one in five dollars of digital ad spending will be channeled toward banners and “other digital display ad types,” including video.

Users are going mobile, and the eMarketer report shows that. 77.5% of the more than $22.5 billion spent on digital display ads this year will go towards reaching consumers on mobile devices. Marketers are gearing resources toward more specific channels in response to this — video will see a spending growth of 28.5% in 2016.

In the same vein, the report predicts that digital ad spending for mobile will increase to $33.7 billion by 2019, while digital ad spending on desktop will reach $12.35 billion in the same year.

This overall bend toward increased digital ad spending is anticipated to persevere through 2019, with the expectation that marketers will be spending approximately $46.69 billion at that time. On the other hand, search spending is projected to be $40.6 billion by 2019.

What steps is your company taking this year to increase its digital presence?

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Filed Under: Business Tips