This is a three part article that explains my personal reasons why people should advertise with digital from the shoe of investors, consumers and ethics! Hope you like it!
Reason 1: Growth & Results – We should advertise with digital, because it is a method that is growing in demand and producing strong results.
– Growth –
According to eMarketer, the global ad spending is projected to increase faster than previously expected, with a 7.2% growth in 2016 which sums to $550.51 billion. The source additionally credits the rise largely due to increased digital advertising activity, as well as greater spending related to the US presidential election and Summer Olympics in Rio.
- eMarketer projected growth rate between 5 – 9% each year with total spending forecast to $724.06 billion in 2020 – this rise is mainly derived from the strong demand in digital advertising (heavily mobile).
- The top five advertising market countries are…
- US
- China
- Japan
- UK
- Germany
- The above 5 will continue to remain dominant in the forecast years, with US covering $196 billion in total media ad spending this year (36% of the global total).
According to Forbes‘ results pulled from eMarketer, U.S. digital ad spending will reach $83 billion in 2017, representing an increase of 16% from 2016 ($71.55 billion), according to consultancy eMarketer’s latest forecast
- Digital ad spending (includes mobile) will increase 20.3% and reach $194.60 billion in 2016 – summing to 35.3% of total media spending.
- By 2020, digital spending will pass $335 billion, representing over 46% of total media ad investment.
- For the year 2016, mobile ads will account for more than half of the digital ad investment, and almost 20% of total ad spending.
– Results –
According to IAB’s annual and HY (half-year) reports conducted by PwC, below are few interesting points that depict the results of digital advertising. (IAB PwC 2015 Report)
In FY 2015, revenue from internet advertising increased 20.4% in the US, totaling $17.4 billion in fourth quarter of 2015 – 18..3% increase from third quarter of $14.7 billion and an increase of 22.8% from the previous year (2014) fourth quarter revenue which was at $14.2 billion.
The total internet advertising revenue summed to 59.6 billion , up 20.4% from the 49.5 billion in 2014.
Additionally, according to the 2016 HY IAB report from PwC, the HY revenue for 2016 was $32.74 billion from $27.48 billion in HY 2015 (19.1% increase).
Thus, growth in the demand and it’s unparalleled results are undoubtedly a reason why people should advertise with digital.
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