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DIGITAL ADVERTISING - US - AUGUST 2019

Published By :

Mintel

Published Date : Aug 2019

Category :

Media

No. of Pages : N/A

Digital advertising is a $125 billion industry and is estimated to account for more than half of total advertising spending following robust growth across all segments including banner, video and search. Growth is expected to continue, albeit at a slightly slower rate than in years past, indicating that the digital ad market is reaching maturity. Digital media consumption continues to rise as new streaming services enter the market and consumers switch to internet-based media

Table of contents

OVERVIEW
What you need to know
Definition
EXECUTIVE SUMMARY
Overview
Key takeaways
The issues
Consumers routinely come across irrelevant ads
Figure 1: Digital ad results, May 2019
Four in 10 use two or more methods to avoid digital ads
Figure 2: Number of ad-avoidance methods used, May 2019
Privacy and personal information are sensitive areas for consumers
Figure 3: Digital ad behaviors, May 2019
The opportunities
Marketers need to go where the people are, and that’s digital
Figure 4: Total US digital advertising revenue, by segment, 2014-24
Brands looking for a younger audience must have a mobile presence on social media
Figure 5: Daily smartphone activities, October 2017-November 2018
Marketers can be more aggressive in using data to pursue Generation Z
Figure 6: Attitudes toward digital advertising – Personal information, by generation, May 2019
What it means
THE MARKET – WHAT YOU NEED TO KNOW
Digital advertising spending still growing, just not as quickly
Digital video advertising forecast for rapid growth
Regulations could shake up the digital advertising industry
Digital assistants could become the next search engine
MARKET SIZE AND FORECAST
Digital advertising spend could double by 2024
Figure 7: Total US digital advertising spend and fan chart forecast, at current prices, 2014-24
Figure 8: Total US digital advertising spend, at current prices, 2014-24
MARKET BREAKDOWN
Growth in volume, breakouts remain the same
Figure 9: Breakout of US digital ad spend, by segment, at current prices, 2018-19
Paid search the largest, yet slowest, growing segment
Figure 10: Total US digital paid search advertising spend and fan chart forecast, at current prices, 2014-24
Figure 11: Total US retail sales and forecast of paid search advertising spend, at current prices, 2014-24
Digital video shows highest potential growth
Figure 12: Total US digital video advertising spend and fan chart forecast, at current prices, 2014-24
Figure 13: Total US digital video advertising spend, at current prices, 2014-24
Banner ad spend will grow alongside social media
Figure 14: Total US digital banner advertising spend and fan chart forecast, at current prices, 2014-24
Figure 15: Total US digital banner advertising spend, at current prices, 2014-24
MARKET FACTORS
5G should increase connectivity and bandwidth
Digital assistants could be the next search engine
Digital TV increase will lead to spike in digital video ads
New regulations could make it harder for marketers to reach consumers
Levies on large tech companies could impact digital ad market
KEY PLAYERS – WHAT YOU NEED TO KNOW
Facebook revenues continue growth
Shopify brings ecommerce solutions to small businesses
Snapchat’s user growth stalls
5G could enable new wave of geolocation-based advertising
WHAT’S WORKING?
The Trade Desk revenues show consistent growth
Figure 16: The Trade Desk annual revenue, 2014-18
Facebook hits more than $55 billion on revenue
Figure 17: Daily Instagram users, by Generation Z and Millennials, January 2017-May 2019
Figure 18: Facebook yearly revenue, 2014-18
Shopify brings digital solutions for small businesses
Figure 19: SmallBiz Ahead communication email, July 2019
Hulu a growing marketplace for digital video advertisers
Figure 20: Hulu video advertising stats, January 2019-July 2019
WHAT’S STRUGGLING?
Snap Inc. shows revenue growth, but uncertain profitability
Figure 21: Daily snapchat users, by Generation Z and Millennials, January 2017-May 2019
Figure 22: Daily Instagram users, by Generation Z and Millennials, January 2017-May 2019
WHAT’S NEXT?
Digital voice assistants could take over search engines
More geo-location based ads will arrive in a 5G environment
Connected devices could unlock new ways to interact with consumers
Augmented Reality Ads
Figure 23: Facebook CES exhibit, January 2019
THE CONSUMER – WHAT YOU NEED TO KNOW
Marketers need to be on mobile
Irrelevant ads a problem for digital advertising
One in five consumers use three or more methods to avoid ads online
Consumers know they are tracked and privacy is a concern
Companies aren’t trusted custodians of personal data
DIGITAL DEVICES USED
Consumers use a wide variety of digital devices
Figure 24: Devices used in the past seven days, October 2017-November 2018
Figure 25: Mobile phone ownership and type of phone used, 2011-18
Digital video platforms will be key to reaching younger consumers
Figure 26: Devices used in last seven days – TV and streaming media devices, by gender and age, October 2017 – November 2018
Opportunities for cross-platform advertising due to second screening
Figure 27: Activities while watching TV, October 2017-November 2018
Gaming platforms effective at reaching men 18-34
Figure 28: Video game console use in last seven days, by gender and age, October 2017-November 2018
Web browsing and social networking top daily activities on smartphones
Figure 29: Daily smartphone activities, October 2017-November 2018
Figure 30: Time spent on smartphones, by activity, October 2017-November 2018
DIGITAL ADS VIEWED
Email and social media news feed ads get the most recognition
Figure 31: Digital ads viewed in the past seven days, May 2019
Digital strategy necessary to reach younger consumers
Figure 32: Digital ads viewed in the past seven days, by age, part 1, May 2019
Email and display ads better at reaching older consumers
Figure 33: Digital ads viewed in the past seven days, by age, part 2, May 2019
Social, audio and video ads should prioritize mobile
Figure 34: Devices used to view digital ads, May 2019
DIGITAL AD RESULTS
Nearly half of consumers served irrelevant ads
Figure 35: Digital ad results, May 2019
Display ads less likely to target the right audience
Figure 36: Digital ad results, by digital ads viewed, May 2019
Digital ads most effective among younger men
Figure 37: Digital ad success, by gender and age, May 2019
Audio streamers more engaged with digital advertising
Figure 38: Digital ad success, by digital ads viewed in the past seven days, May 2019
AD-AVOIDANCE METHODS
Marketers play cat and mouse with consumers online
Figure 39: Ad-avoidance methods, May 2019
Age and gender have minimal impact on ad-blocking usage
Figure 40: Ad-avoidance methods – Ad-blocking software, by gender and age, May 2019
Millennials most likely to provide fake email information
Figure 41: Ad-avoidance methods – Fake email information, May 2019
Audio streamers more likely to pay for ad-free access
Figure 42: Ad-avoidance methods – Pay for ad-free experience, by digital ads viewed in the past seven days, May 2019
Figure 43: Apple music display ads, July 2019
Nearly a third of consumers don’t take measures to avoid online ads
Figure 44: Number of ad-avoidance methods used, May 2019
Figure 45: Ad-avoidance methods, by number of ad-avoidance methods used, May 2019
Voracious social media users look to avoid ads
Figure 46: Social media sites visited daily, by number of ad-avoidance methods used, May 2019
Figure 47: Attitudes toward digital advertising – Social media and local notifications, by number of ad-avoidance methods used, May 2019
Figure 48: Digital ad results, by number of ad-avoidance methods used, May 2019
Privacy concerns a factor behind ad-avoidance behaviors
Figure 49: Attitudes toward digital advertising – Personal information, by number of ad-avoidance methods used, May 2019
Figure 50: Online ad behaviors, by number of ad-avoidance methods used, May 2019
Figure 51: Privacy on iPhone – Private Side, commercial, March 2019
Figure 52: Privacy on iPhone – The Answer, March 2019
DIGITAL AD BEHAVIORS
Consumers are aware advertisers are tracking them
Figure 53: Digital ad behaviors, May 2019
Video streaming services need variety in ads
Figure 54: Digital ad behaviors – Repeating video ads, by generation, May 2019
Figure 55: Digital ad behaviors – Repeated digital video ads, May 2019
Inroads can be made with younger Millennials via social networks
Figure 56: Digital ad behaviors, by generation, May 2019
CONSUMER ATTITUDES TOWARD DIGITAL PRIVACY
Consumers as a whole concerned with the information marketers have
Figure 57: Consumer attitudes toward digital advertising – Personal information concern, by age, May 2019
Younger women more comfortable when it comes to online personal information
Figure 58: Attitudes toward privacy, part 1, by gender and age, October 2017-November 2018
Privacy assurance and tangible benefits will get consumers to provide personal information
Figure 59: Attitudes toward privacy, part 2, by gender and age, October 2017-November 2018
Generation Z men are most ambivalent when it comes to personal info
Figure 60: Attitudes toward privacy, part 3, by gender and age, October 2017-November 2018
Figure 61: Attitudes toward privacy, part 4, by gender and age, October 2017-November 2018
CONSUMER ATTITUDES TOWARD DIGITAL ADVERTISING
Consumers skeptical of paid online advertising
Figure 62: Attitudes toward digital advertising, May 2019
Ads in general are a nuisance to online consumers
Figure 63: Attitudes toward digital advertising, May 2019
Millennials most comfortable with video ads in the middle of content
Figure 64: Attitudes toward digital advertising – Video ad placement, by generation, May 2019
Figure 65: Attitudes toward digital advertising – Bothersome, by generations, May 2019
CONSUMER SEGMENTATION
Three consumer segments based on attitudes toward digital advertising
Figure 66: Consumer segmentation – Attitudes toward digital advertising, May 2019
Ad Neutralists
Characteristics
Figure 67: Profile of Ad Neutralists, May 2019
Figure 68: Attitudes toward digital advertising – Personal information concern, by consumer segmentation, May 2019
Opportunities
Figure 69: Breakdown of number of ad-avoidance methods used, by consumer segmentation, May 2019
Figure 70: Ad-avoidance methods, by consumer segmentation, May 2019
Ad Rejectors
Characteristics
Figure 71: Profile of Ad Rejectors, May 2019
Figure 72: Devices used to view digital ads – Smartphone, by consumer segmentation, May 2019
Opportunities
Figure 73: Digital ad behaviors – Ad clicking, by consumer segmentation, May 2019
Ad Realists
Characteristics
Figure 74: Profile of Ad Realists, May 2019
Opportunities
Figure 75: Attitudes toward digital advertising, by consumer segmentation, May 2019
APPENDIX – DATA SOURCES AND ABBREVIATIONS
Data sources
Sales data
Fan chart forecast
Consumer survey data
Consumer behavioral data
Direct marketing creative
Abbreviations and terms
Abbreviations
Terms
APPENDIX – THE MARKET
Figure 76: Total US digital advertising spend – “Other” and fan chart forecast, at current prices, 2014-24
Figure 77: Total US digital advertising spend – “Other,” at current prices, 2014-24
Figure 78: Total US retail sales and forecast of 0, at inflation-adjusted prices, 2014-24
Figure 79: Total US retail sales and forecast of banner , at inflation-adjusted prices, 2014-24
Figure 80: Total US retail sales and forecast of video , at inflation-adjusted prices, 2014-24
Figure 81: Total US retail sales and forecast of search, at inflation-adjusted prices, 2014-24
Figure 82: Total US retail sales and forecast of other, at inflation-adjusted prices, 2014-24

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