The Retail industry currently accounts for more digital video and digital display advertising dollars than any other industry, but it isn’t set to increase its investment despite record e-commerce sales, according to new figures from eMarketer. Here’s a look at how a range of industries are handling their ad investments right now.
The data from August 2020 identifies the Retail industry as the key player in digital video ad spend, with the industry estimated to account for the largest share (18.5%) of digital video ad spending this year. CPG follows behind with a 15.6% share, followed by Financial Services (13.1%), Telecom (10.6%) and Automotive (9.9%). The Travel industry comes in at the bottom, constituting just 1.7% of spending.
Digital Display Ad Spend
As far as digital display ad spend is concerned, the picture is very similar, with Retail also accounting for the highest share (18.1%) of ad spending in this area. Again, CPG accounts for the next-highest share (15.6%), followed by Financial Services (13.3%), Telecom (11.9%) and Consumer Electronics (9.7%).
Some industries appear to favor one platform slightly more than the other. For example, Telecom accounts for a higher share of digital display (11.9%) than digital video (10.6%) dollars. By contrast, Entertainment plays a bigger role in video (8.5% share) than display (7.3%).
The report highlights a missed opportunity for the US Retail industry, based on eMarketer estimates that US retail sales will fall by 10.5% this year. The current pandemic-related shift to e-commerce and resultant accelerated digital sales has evidently not been enough to encourage Retail advertisers to increase investment in digital display advertising. In fact, the industry is growing its incremental US digital display ad spending by what the report calls a “sluggish” 2.3%.
Understandably, the Travel industry has seen the biggest drop-off in digital display ad spending (-43.4%). By contrast, industries such as CPG, which is seeing increased digital grocery shopping as a result of the pandemic, and Consumer Electronics, which is supplying consumers with additional home-working technology, have increased their digital display ad spending this year (by 12.8% and 20.8% respectively).
Mobile Ad Forecast
eMarketer has also released new data on mobile ad spending for Q3 2020, finding that while mobile platforms’ share of US digital ad dollars is at an all-time high at more than two-thirds (68%), the fallout of the pandemic has shrunk growth.
As a result, mobile ad spending this year is set to increase by 4.8%, which is a significant departure from both last year’s growth of 23% as well as eMarketer’s estimated growth of 22.5% for 2021.
It’s worth noting that some parts of mobile advertising have fared better than others, with performance channels doing well compared to branding channels, while ads on social media, gaming and streaming video apps have managed to hold up better than location-based advertising.
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About the Data: Findings are based on data from all formats of ads on all internet-connected devices.