“For the CPG and travel industries, we are seeing contrasting market dynamics leading to a contradictory trend in digital ad budgets in 2019,” eMarketer forecasting analyst Oscar Orozco said. “While consolidation in the CPG sector is leading to a squeeze in ad budgets, increased competition in the travel industry is spurring digital ad spending, as brands fight for market share and consumers’ attention.”
Mobile is a key driver of online ad spending among hotels, airlines and other travel industry services. In fact, the travel sector spends more of its digital budget on mobile than any other industry: 70.1% in 2019.
Financial Services Surpasses Auto Spending
Next year, the auto sector will fall behind financial services in digital outlays. In 2020, the auto industry will spend $18.15 billion on digital ads, while financial services will spend $18.25 billion.
“We expect weakness in the automotive market to hurt digital ad spending into the coming years,” Orozco said. “While dealers have seen subdued advertising budgets recently, automakers are also busy grappling with new technologies, shifts in consumer behaviors and stricter emission standards. All of this is being prioritized, leading brands to pivot their focus from ad spending to research and development.”
Mobile is driving digital ad spending within the financial sector, as firms look to target millennials specifically. In fact, 69.4% of all financial sector digital spending is on mobile, making it the No. 2 industry for mobile outlays.