Digital ad spending will surpass traditional ad spending in 2019 and make up two-thirds of all ad spending by 2023, according to a new report by eMarketer.
According to the market-research company, US digital ad spending will grow 19.1% this year to $129.34 billion, which is nearly $20 billion more than traditional ad spending. That means that digital now accounts for 54.2% of total US ad spend.Mobile advertising will make up the bulk of this digital spending (two-thirds), totaling $87.06 billion in 2019.
On the other hand, traditional ad spending's share of the ad pie will decline to 45.8% in 2019 from 51.4% in 2018. TV, in particular, will decline 2.2% to $70.83 billion, largely because there are no elections or big events, such as the Olympics or World Cup. TV is expected to come back in 2020, owing to the presidential election.
"The steady shift of consumer attention to digital platforms has hit an inflection point with advertisers, forcing them to now turn to digital to seek the incremental gains in reach and revenues which are disappearing in traditional media advertising," said eMarketer forecasting director Monica Peart.