TV & Audio

Digital to Leapfrog TV Soon in Ad Industry Market Share

By Tinuiti Team

“The digital revolution is far more significant than the invention of writing or even of printing.” This interesting quote was expressed by Douglas Engelbart, a famed computer and internet pioneer.

Whether or not you believe what he said, the impact of digital media is profound. Digital media is so profound that it’s expected to surpass television’s historical dominant share of U.S. ad spending by the end of 2016, according to Media Post.

More specifically, digital media will represent about 36.8 percent of total U.S. media spending, while television will only represent 36.4 percent. As a result, online display advertising is increasing momentum as television ads take the backseat.

Why the ad industry is more devoted to digital media

The growing admiration the ad industry has for digital media is largely based on trending user behavior. Internet users are moving in the direction of mobile activity more than ever. For example, mobile usage represents 65 percent of digital media time. And overall mobile traffic is expected to grow by 50 percent in 2016 alone. Keep in mind that 80 percent of internet users have smartphones.

Growth in mobile usage is urging marketers to put more emphasis on compatible display advertising and other avenues of digital media. Besides, digital media has a lot more to offer than analog media. For example, online display advertising encompasses social media, email, blog posts, and videos.

You have a lot more channels at your fingertips to explore ways to reach consumers. And this means more bang for your buck.

The historical dominance of TV ads

But let’s back up and talk about the historical dominance of television ads. What makes them so captivating to viewers? This largely has to do with tradition. Television marketing offers the most exciting visuals for product and service advertisements.

This began during the mid-1900s as advertisers introduced the creativity and entertainment of television shows to their strategies. As this took flight, viewers increasingly took pleasure in the demonstrative power they possessed.

Seeing demonstrators showcase how to use products and services served as a strong call-to-action. But advertisers are learning from this to make their online display advertising more interactive. Check out these interactive banner ads featuring IKEA, Apple, and MetLife.

Future spending for digital media forms

The sum of ad spending for online and mobile digital media is expected to reach $72.09 billion by the end of this year. This is a little bit higher than television ad spending, which is projected to reach $71.29 billion.

More specifically, mobile and video will dominate other digital media categories. People are transitioning their love for visual display from analog to the digital space. Mobile ad spending will take up a big chunk of total spending: $45.95 billion (45 percent).

Who will capture most of the mobile market? This will be Google without a doubt, at 32 percent. Facebook will be trailing behind closely with about 22 percent. In addition, Facebook might continue to outperform Google in display advertising revenue.

What this means for you

It’s clear you can expect to put more money towards digital media advertising. And it’s highly important to create display advertising that can stand up to increasing mobile usage. In other words, online display advertising needs to be mobile-friendly and load fast to keep up with smartphone users.

Utilize interactive display advertising that’s fun and demonstrative, such as with games and how-to’s. Add more video advertisements to the picture, increasing user engagement. Google and Facebook will be the best platforms for these practices.

Are you surprised by the upcoming transition? Getting back to the quote we mentioned earlier, Engelbart was definitely onto something. Digital media is unstoppable, and we confidently understand this. We specialize in display advertising with a multi-dimensional approach, to efficiently achieve marketing goals. And we understand how to effectively align social media with this process.

Read our case study: Optimized Shopping Feed Steps Up Equine Supplier’s Sales

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