What will the digital ad market look like in 5 years?
First, let’s define digital advertising: Digital advertising refers to marketing media that is digitally displayed. Digital advertising technology exists on the Internet, on smart phone and hand-held media devices, and even on automobiles and billboards. Businesses and product manufacturers use digital advertising to build or maintain a brand image and market products and services to consumers, according to Small Business.
Traditional door-to-door marketing has evolved and is now moving online every single day because well, everyone they want to sell to is most likely online, specifically on social media platforms like Facebook. Google is also earning much revenue from its web ads, being the most often used search engine by people all over the world. TV, radio, billboard and print advertising still exist, but a digital ad is much more far reaching these days.
The chart above was compiled by Statista’s analysts who say:
‘According to data from Statista’s Digital Market Outlook, search advertising is the largest piece of the digital advertising pie with global revenues amounting to $91 billion this year. Banner advertising ranks second with $43.5 billion in estimated revenue.’
The analysts also said they expect digital ad revenue to grow by 10.9% in the next 5 years, as you can see in the chart. social media with its video capabilities has been the driving force of much digital ad placement, and is much cheaper and more effective as the marketer can set the target audience they want to reach i.e on Facebook.
Why digital ads though? Marketing Land gives some reasons:
- it drives sales and returns on investment (ROI)
- it enhances the effectiveness of non-digital media channels
- it’s effective across the entire customer journey
- it drives word-of-mouth at scale
- digital creative drives interaction and lifts brands
- is more efficient than traditional media
- is essential to reaching an audience
You can read more on these reasons here.
