US CPG Digital Ad Spending 2019

Executive Summary

US consumer packaged goods (CPG) advertisers will increase their digital ad spending by 17.3% to $11.12 billion in 2019. Meanwhile, total US digital ad spend will grow by 19.1% this year. CPG advertising is growing at a slower rate than most other ad spending verticals due to private-label competition and mergers and acquisitions (M&A) in the CPG space, which squeeze ad budgets.

What is CPG’s share of total US digital ad spend?

CPG will account for 8.6% of total US digital ad spend in 2019. Its share will fall to 8.5% in 2020.

What are the challenges facing CPG advertisers?

CPG must contend with industry consolidation, working with external parties (like retailers and vendors) when leveraging consumer data, and making sense of the rise of interactive shoppable ads.

Which digital ad format is growing fastest?

Search ad spend will increase 27.6% in the CPG sector this year. CPGs are spending more on search as consumers increasingly shop for CPG products online.

How much will CPG advertisers spend on mobile?

CPG advertisers will spend $7.54 billion on mobile ads in 2019, up 22.8% over the previous year.

WHAT’S IN THIS REPORT? This report includes our annual breakdown of US CPG industry digital ad spending. It includes a comprehensive overview of total digital ad spending, as well as estimates by channel, device and format.

KEY STAT: The US CPG industry will increase its digital ad spending by 17.3% to $11.12 billion in 2019.