Monday, 10 June 2013

Retailers' Digital Ad Spending Nears $10 Billion


U.S. retailers, already the heaviest spenders in digital advertising by category, are forecast to increase their spending by another 14% to $9.4 billion this year. By next year, that figure will surpass $10.4 billion, reaching $13.3 billion by 2017.
According to estimates from eMarketer, retailers already account for 22.3% of all digital ad spending, the most of any industry. About two-thirds of their investments are in direct response ads (i.e., those designed to lead to a sale, rather than promote a brand). Direct response formats include search, mobile messaging and classifieds.
Other industries, including financial services, consumer packaged goods and travel, are also forecast to increase their investments in digital advertising over the next five years. Like retailers, firms in the financial services and travel industries are investing the majority of their digital ad dollars in direct-response formats. Consumer packaged good companies, however, are dedicating over half of their digital ad dollars to branding opportunities, such as banner ads and rich media.
Not all industries are increasing their digital ad spend as quickly, however: The healthcare and pharmaceutical industry are only expected to increase their spending by 6.4% this year, less than half the U.S. average of 14%. Consumer electronics and telecom companies are also investing at a slower pace, at 12.5% and 11.1% growth, respectively.


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