WWD Digital Daily

Digital to Garner 55% of Ad Spending

- BY ARTHUR ZACZKIEWIC­Z

Emarketer is projecting total digital ad spending to grow 19.1 percent this year to $132.32 billion — which represents 55 percent of all U.S. ad spending. And while the top companies holding market share will maintain large leads, Amazon is seeing significan­t year-over-year growth.

Overall, mobile digital ads will drive a lot of the growth, increasing by more than 22 percent this year to $93.3 billion, which is 71 percent all U.S. digital ad expenditur­es. The growth comes as TV ad spending will see a 1 percent decline this year to around $69 billion — reflecting market share of 28.7 percent. With social media ads, this segment will grow 19.4 percent to $32.2 billion.

And while Google will take the lion's share of the digital ad spending, it is projected to be slightly less this year than in 2018. Google's U.S. digital ad revenue share will drop to

36.2 percent this year from 37.1 percent last year. And its mobile ad share will fall to 29.8 percent from 30.6 percent last year. Number two Facebook is projected to be flat in mobile sales at about 28 percent while is total digital share will rise 20 basis points to 20.8 percent from 20.6 percent last year.

Amazon is poised to see its total digital ad share rise to 5.5 percent this year from 4.1 percent last year. And its mobile share will climb this year to 3.1 percent from 2.1 percent.

Emarketer also sees more consumers using smart speakers this year. The firm estimates that 74.2 million people will use a smart speaker this year in the U.S., which is up 15 percent over last year. And this year, 63.3 percent will use an Amazon Echo as 31 percent will use a Google Home.

Regarding wearable devices, the firm said 56.7 million U.S. adults “will use a wearable device at least once a month, up more than 9 percent over last year.” And nearly 29 million will be using a smartwatch, which reflects a year-overyear gain of 17 percent.

With consumers who engaged in augmented reality, 58.8 million people are expected to experience AR content at least once a month this year — a 15 percent year-over-year gain. With virtual reality, “there will be 49.7 million Americans who will engage with VR content at least once a month this year (via any device), an increase of nearly 35 percent over last year.”

Emarketer sees digital ad spending growing 19.1 percent this year.

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