It’s an obvious statement that advertisements we see are mostly in digital format. From web banners to video and pop-up ads on social media – digital is everywhere. What’s not so obvious is how much money brands have budgeted for digital ads; something that is changing this year.
The gradual shift to digital spend.
Since high-tech digital seems to dominate the ad space of today, the general belief was that most marketing dollars were already being poured into their planning, creation, and launch. Not true. Traditional advertising has always received more funding than digital. But that is changing. In a recent article for Forbes, Toni Fitzgerald notes this change has been progressing for a few years. Factors ranging from the Great Recession (which negatively impacted traditional) to continually increasing opportunities in the digital landscape have influenced this slow but sure shift. Where traditional advertising is concerned, out-of-home (OOH) will remain strong, but it should be noted that many billboards and other similar items now incorporate digital technology.
A new chapter in the digital (advertising) revolution.
It has been proclaimed that 2019 will be the first year in the history of advertising where more dollars will be spent on digital over traditional formats of print, television, and radio. Ms. Fitzgerald acknowledges this projection is based on data from market research company eMarketer, which predicts how two-thirds of budgets will be allotted for digital advertising within the next several years. To illustrate this:
- In 2018, nearly $115 billion was spent on traditional advertising, but this figure is expected drop to approximately $104 billion by 2021.
- Conversely – in the same time period – digital advertising, which had been given a little over $108 billion will rise to $172 billion in spend.
A case in point: Amazon.
It was reported last year that Amazon had made great strides in digital advertising, despite being a very distant third place to Google (first place) and Facebook (second place). As digital spend increases, so too will fortunes of this retail giant. According to The Washington Post, Amazon’s advertising business is expected to grow by 50-percent this year, and might well “close the gap.” This begs the question: will 2019, the year when more funds will be allocated to digital also be the year when Amazon won’t be such a distant third place to Facebook and Google?
Digital is dominant. Every brand, from small businesses to mega-giants like Amazon will put the majority of their budgets to digital ad spend this year.
Keep up with the times. Learn more about the digital marketing services EGC can provide for your brand.
