For the first time, companies will spend more on digital ads than for the ones that are on more antique formats, like TV and print in 2019.
According to E-Marketer novel forecasts, U.S. digital ad spends will compose more than half of the whole U.S. ad spending, summing up to about $129.34 billion in 2019.
Out of that stated amount, two-thirds will be spent uniquely on mobile ads.
Here’s a closer view at where those ads are showing up from — and other recent data surrounding ad spent that could show future trends.
Where the Digital Ads Appear
As E-Marketer reveals in its forecast, digital ad spend widely has what is called the “duopoly” of Facebook and Google: a term that indicates the significant amount of digital ad spend (about 59.3% in 2019) collected by one of the two platforms.
But appearing in the third position is a platform that seems to be entering the duopoly’s territory at a faster pace than anticipated: Amazon.
As early as last September, E-Marketer forecasted that Amazon’s share of digital ad spend would get up to 7% in 2020,
Now, the estimate is no longer the same, with the company’s most recent data already placing Amazon in front of that original estimate, with 8.8% of the U.S. digital ad spend share in 2019.
A company that works with manufacturers to optimize online sales – last fall, Andrea Leigh and Ben Winters of Ideoclick — spoke at Code Commerce 2018 to the rapid growth of Amazon’s advertising platform.
Winters stated, at that time that Amazon advertising had rapidly become the third-largest digital ad platform — where product ads that were sponsored began showing in 2012– behind Facebook and Google.
And while none of the stated forecasts have Amazon leading the Duopoly in the coming year or two years ahead, Winters did mention that Amazon’s ad profit is increasing at 5X the rate as Google’s.
Also worth looking at is the quantity of data in Amazon’s possession on user preferences and buying behavior — because of which, it has the knowledge of where to place those ads to get the most profit.
What’s more: Amazon continually increases its collection methods, in part with its cashier less Go stores. The store’s “walk-out technology” permits customers who have downloaded the Go app to include the items they desire to a bag and leave, with the assistance of sensors.
That sensor not only takes note of what shoppers place in their baskets, but also weigh which products they pick up, observe, and then put back — copying the e-commerce browsing experience, but in real life.
This potent hybrid of on-and offline behavioral user data could enable Amazon’s ad targeting to be even more potent in the future.
Earlier this year, a questionnaire was given to 855 individuals across the U.S., UK, and Canada — “How do you think online advertisements will change in the next five years?” — with a beam on the format of those ads.
Overall, respondents seem aggressively confident on the future of video ads, with an even split number — 31% each –between those who feel that they would increase far more than text-based ads, and those who feel that they will take over text-based ads totally.
That is in agreement with the earlier findings from E-Marketer, which shows that companies are spending excessively on digital video ads.