Advertisers’ dollars continue to shift from traditional to digital channels at a fast pace, with mobile leading the charge. In 2018, mobile advertising alone is expected to surpass TV ad spending.
We forecast that US ad spending will grow 6.6% this year, reaching $220.96 billion. That growth rate, while respectable, is lower than the 7.3% increase in 2017.
Here are the key numbers:
TV ad spending will drop 0.5% to $69.87 billion. And it will continue to slip slowly throughout this forecast period (which ends in December 2022) save for a slight bump in 2020, thanks to the Summer Olympics in Tokyo and the US presidential election.
Google’s digital ad revenues will reach $39.92 billion in 2018, a 14.5% increase over last year. Facebook will generate $21.00 billion in ad revenues, up 16.9%. Together, the two giants will grab 27.6% of all ad dollars. Their continuing growth is a major factor in leading us to forecast that digital channels will account for more than 50% of total ad spending next year. And by 2019, Google and Facebook will have combined ad revenues greater than that of TV ad spending.
This year, driven by display ads, mobile will account for 69.9% of all digital advertising. With a 33.9% share of total US ad spend, mobile will pass TV as the leading advertising medium in the world’s largest ad market—and we expect that share will grow to a whopping 47.9% by 2022.
Here’s what’s in the full report
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