Dig­i­tal to Gar­ner 55% of Ad Spend­ing

WWD Digital Daily - - In Focus: Business Insights - 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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