Posted October 8, 2014 by fran @ 3:37 pm
Everything’s going digital!
That line has been at the forefront of everyone’s minds in pretty much every field there is. For some, it evokes fear. For others, it is a battlecry and a hope for the future. And still others aren’t on the bandwagon for either side. But no matter where you stand on the issue, it is time to take notice. Online is a vast and profitable market that we are just beginning to reap the advantages and benefits of. We are still a long way from a total digital takeover, but the Internet is a force to be reckoned with.
Especially when it comes to advertising. Online advertising is projected to account for 24% of the the $523 billion that will be spent in total advertising in 2014, according to ZenithOptimedia. And the number of digital ads will only continue to grow. By 2019, spending on online advertising is expected to nearly double from the current price tag of $19.8 billion to a whopping $37.6 billion (a 90% increase). Those figures are still a far cry from the projected $239 billion spent on offline advertising in 2019 (operating at a growth rate of 1% per year), but they’re not a number to shake a stick at.
Online advertising is increasingly becoming a focal point in the industry. It is the main topic of discussion at the upcoming Advertising Week in New York, where new powerhouses such as Buzzfeed and Instagram will take center stage. A trend is developing towards automatic ad buying, which will pull advertising even deeper into the realm of digital. The growth in online advertising is mainly concentrated in video and mobile. Video is expected to grow 21% annually for the next five years. Mobile is expected to account for 40% of all online display ad spending by 2019. All of these facts and figures will loom large at Ad Week as big names converge to discuss the state of the industry.
Offline is not dead yet (and it may never be), but digital is continuing to take an increasingly larger role in advertising.
Time to get your head in the game.
Image by Ruth Flickr on Flickr Creative Commons.