The Growth Of Digital Advertising

Otherwise known as “Internet Marketing” or “Online Marketing,” digital advertising is the preferred form of advertising of most businesses since technology is basically ingrained in our daily lives these days. Various technologies are put to good use so that people gain more brand recognition. Social media marketing is the thing these days. Meanwhile, digital advertising pertains to any promotional materials sent through a person’s mail, email, on search engines and even in the form of banner ads.

Traditional advertising has become so expensive these days that not all start-up can afford to pay for their services. After all, most people are glued to the screens of their smartphones or smart gadget so they won’t really notice those billboards plastered on either sides of the road or watch repetitive commercials on TV when they can choose to watch only the shows that they like online or even live stream for it.

Last year marked a couple of firsts for the media industry. In 2016, digital advertising became a larger business than television advertising and mobile accounted for more than half of all digital spend in the United States, according to a new report from PricewaterhouseCoopers in partnership with the Interactive Advertising Bureau.

Digital advertising revenue jumped nearly 22 percent to $72.5 billion in 2016, marking eight consecutive years of record-breaking gains. According to eMarketer, TV ads brought in $71.3 billion in U.S. revenues last year. And the trend is likely to continue, with eMarketer estimating that the digital ad market will grow by 15.9 percent to $83 billion in 2017.

The sustained growth in digital ad spending is also empowering Google and Facebook to deepen their duopoly over the market. Google is on track to end 2017 with 40.7 percent of the digital ad market in the U.S., while Facebook grows to 19.7 percent.


The habits of the people are changing. Even retail therapy isn’t what it used to be. Many outlet stores and malls are closing since fewer and fewer people go to them to actually shop. Online shopping is the growing trend these days and most people now do their shopping from the comforts of their mobile phones. No need to go to an actual shop and spend hours looking for specific clothes, shoes or knick knacks. And this isn’t just a US trend but the same issues are faced in other parts of the world too.

Immediate post-Brexit concerns don’t appear to have impacted UK ad spend, according to new figures from the Advertising Association and Warc.

UK ad spend grew to £5.8bn, a 3.9{f62df8dbced57732e07aba3c4e84a5f8001876212f3a79bb2bbde2fc8d62e0bd} year-on-year rise, in Q4, and this marks the highest grossing quarter since the Expenditure Report started in 1982. It also marks an upward trend following flat growth in Q3 in the immediate wake of June’s Brexit referendum.

Meanwhile, for 2016 as a whole, ad spend grew 3.7{f62df8dbced57732e07aba3c4e84a5f8001876212f3a79bb2bbde2fc8d62e0bd}, reaching £21.4bn and marking the seventh consecutive year of market growth.

Digital formats continued to dominate, with internet ad spend up 13.4{f62df8dbced57732e07aba3c4e84a5f8001876212f3a79bb2bbde2fc8d62e0bd} to £10.3bn for the year. Mobile accounted for 99{f62df8dbced57732e07aba3c4e84a5f8001876212f3a79bb2bbde2fc8d62e0bd} of that growth, with ad spend for mobile platforms up a whopping 45.4{f62df8dbced57732e07aba3c4e84a5f8001876212f3a79bb2bbde2fc8d62e0bd} to £3.9bn. The report predicts mobile advertising spend will slow over the coming years (2017: +30.4{f62df8dbced57732e07aba3c4e84a5f8001876212f3a79bb2bbde2fc8d62e0bd} and 2018: +20.8{f62df8dbced57732e07aba3c4e84a5f8001876212f3a79bb2bbde2fc8d62e0bd}) as the current boom dies down.


While conventional retail shops suffer, it has completely opened up a new opportunity for others and it is more likely going to stay than just a passing fad. With the continued advancements in technology, it is safe to assume that digital advertising will continue to dominate the world and change the economic landscape. And as more people use smart gadgets, we can likewise expect to witness more growth in mobile digital advertising to reach this growing market without breaking the bank.

While most of us only have good things to say about advertising on the web, it also has its drawbacks. Plagiarizing is a common issue and businesses suffer a lot as others may copy their ads. Ads are also everywhere online. You may have a hard time tracking where your ads show up. Some even complain that their ads are appearing on dubious sites without them knowing and it can actually hurt their image.

Well, I guess it is just true what they say that everything has a good and bad side to it. You can’t have it all. Its only edge is that this is the most powerful medium now and the preferred by many, so I guess we’ll just stick with it and accept its pros and cons because it works most of the time.

Start a Conversation

Your email address will not be published. Required fields are marked *