Today, digital advertising has been officially crowned the king.
According to forecasts projected by eMarketer, an international research firm, total U.S. digital ad spend will increase 19.1 percent in 2019, to $129.3 billion. On the flip side, total traditional advertising spend (e.g., print, television, outdoor billboards, etc.) is expected to fall 19 percent, to $109.5 billion. This swings the majority of advertising spending to digital, taking up 54.2 percent of the expected total spending for 2019. And this number is only projected to keep increasing.
Where Will The Money Go For Digital Advertising in 2019?
You could spend your marketing budget on billboard advertisements, but it won’t be effective if your marketing doesn’t make your business visible to your target audience. A billboard could work for a sandwich shop, but only if it’s close in proximity and sets you apart from the competition.
This projection covers the entire spectrum of the U.S. digital advertising industry, so naturally most of the digital ad money is going to the Google and Facebook duopoly. However, their grips on digital advertising have begun to slip as eMarketer predicts Google’s market share will drop from 38.2 percent to 37.2 percent and Facebook’s share will increase slightly from 21.8 percent to 22.1 percent. Together these two tech giants will still maintain roughly 59 percent of the digital advertising market.
Notably, Amazon is set to capitalize the most on digital advertising in 2019. Already the third largest digital advertiser in the United States, Amazon’s advertising business is set to grow by 50 percent in 2019, claiming roughly 9 percent of the digital ad market. Microsoft and Verizon round out the top top five digital spenders, but these two tech companies are expected to lose ground in 2019, giving way to other digital advertisers to step in.
How Will Digital Advertising Impact My Business?
Whether you pay for digital ads or not, you cannot ignore this spending trend. In their forecasting report, eMarketer stated that digital ad spending will continue to increase every year and they predicted that by 2023, digital will account for more than two-thirds of total ad spending in the U.S.
What does this mean for your business? The competition will only get tougher. If all your competitors are buying digital ad space, that gives them the advantage. When done right, traditional advertising can still work and give your business a competitive edge, but it neglects the business opportunities that digital marketing strategies can offer.
Should I Start Buying Digital Advertising Space?
Short-term answer: no. Digital advertising only works when the ads are created, placed, and spread all with the target audience in mind. If you just buy digital ad space without considering how it will reach your target audience, you’re wasting your money. The digital world is not going anywhere any time soon, so take your time to figure out your digital marketing strategy before taking action.
Long-term answer: yes. Paid digital advertising is one of the best ways to effectively drive leads to your business, but it should not be your main channel for digital customers. Digital advertising is just one of the many facets that can lead online consumers to your digital assets. You should utilize digital advertising spaces on occasion in the future, but only as a temporary piece of your digital marketing strategy. Focus on the bigger picture when buying digital advertising.
At FiG Advertising + Marketing, we specialize in all aspects of the digital marketing world. Whether it’s search engine optimization (SEO), social media, or pay-per-click (PPC) advertising, we can develop the perfect digital marketing strategy to fit the needs of your business.
Contact us today to learn how we can meet your marketing needs and improve upon them.