This is the year when the money spent on digital advertising will finally overtake spending on traditional ads — at least according to the latest forecast from eMarketer.
The research firm is predicting that U.S. digital ad spend will increase 19.1 percent this year, to $129.3 billion, while traditional advertising will fall 19 percent, to $109.5 billion. That means digital will account for 54.2 percent of the total, while traditional will only represent 45.8 percent.
Not surprisingly, most of the digital ad money is going to Google and Facebook. However, eMarketer says Google’s share of the market will actually decline, from 38.2 percent last year to 37.2 percent this year, and Facebook’s share will only grow slightly, from 21.8 percent to 22.1 percent.
Apparently, Amazon is the main beneficiary here, with its U.S. ad business set to expand by more than 50 percent, accounting for 8.8 percent of total spend.
“The [Amazon] platform is rich with shoppers’ behavioral data for targeting and provides access to purchase data in real-time,” said eMarketer forecasting director Monica Peart in a statement. “This type of access was once only available through the retail partner, to share at their discretion. But with Amazon’s suite of sponsored ads, marketers have unprecedented access to the ‘shelves’ where consumers are shopping.”
The firm also forecasts that by 2023, digital will account for more than two-thirds of total ad spending.