Digital ad spending in the United States is expected to increase 12.9 percent in 2018, totaling $93.75 billion. This will account for over 43 percent of total media ad spending in the United States.1
With the continuing growth in digital advertising, let’s take a look at some key predictions for marketers to keep top of mind in 2018:
Marketers will continue to shift their focus to mobile
As consumers’ digital consumption moves more toward mobile devices, advertisers are following suit. Mobile advertising is predicted to increase 20 percent to over $70 billion in 2018, accounting for almost 75 percent of total digital ad spend.2 The majority of mobile ad spending will go toward mobile display formats including banners, rich media, sponsorships and video, followed by mobile search.
Retailers will continue to enhance their mobile and mcommerce efforts
As more shoppers turn to their smartphones rather than tablets to make purchases, eMarketer estimates that retail mcommerce sales will make up more than one-third of total ecommerce in the United States by the end of the year. In fact, mcommerce sales are expected to experience rapid, double-digit growth through 2020.3 To adapt, many retailers already have some form of mobile technology in place, including sites and apps. According to a July 2017 study, 60 percent of retailers have already implemented a site specifically designed for mobile access and 53 percent have implemented a mobile app. Almost all of the remaining retailers in the study indicated they are planning to implement a mobile site and/or app within two years.4
Digital video will continue to grow in popularity
Growth in consumers’ time spent with digital video is concentrated in two areas – mobile and connected devices. Consumers are starting to spend more time using their portable devices like smartphones to consume video and are utilizing their connected devices on larger screens like TVs. Daily time spent consuming video will (roughly) be split equally between the two in 2018. This viewership trend will encourage advertisers to direct spending towards mobile video and connected TV.4
Gains in online to offline data will lead to more localized mobile advertising
As technology continues to improve, advertisers will have the tools needed to attribute offline sales and store traffic back to online ads. And, more refined online-to-offline data is adding to the evolution of location in advertising. Better online-offline attribution will also encourage advertisers to enhance ads that are dynamically localized to reflect customer behaviors and patterns.4
If these digital predictions come to fruition, 2018 will be another very busy year for many marketers.
- Digital Ad Spending, eMarketer, 2017
- Mobile Marketing and Advertising Trends Roundup, eMarketer, December 2017 (http://hello.emarketer.com/XDp0CmL0M100GC8Ae03FSm0)
- U.S. Mobile StatPack 2017 (http://na2.totalaccess.emarketer.com/reports/viewer.aspx?r=2002052)
- 10 Key Digital Trends for 2018, eMarketer, December 2017