Key Trends of Advertising Industry in 2016

Key Trends of Advertising Industry in 2016

Digital advertising is changing significantly, and now we are into 2016, take a step back and look at some major trends.


Digital advertising invest continues to proliferate

Internationally, digital advertising is anticipated by PWC to grow from $135 billion in 2014 to $240 billion in 2019, a compound annual growth rate (CAGR) over the period of 12.1%. In Q3 2015, U.S. digital ad income reached $15 billion, which is a full 23% increase over Q3 2014, according to the IAB and PWC. At the same time, Magna Global just anticipated that in 2016, digital advertising will surpass tv advertising for the very first time, with $66B in profits in the United States. This is made even more exceptional due to the fact that it is an accelerating trend internationally– last year, Magna Global and PWC anticipated that digital advertising would pass TV in 2017.

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As advertising spend grows, it shifts to mobile

When we look at the growth of digital advertising, those numbers are improved the enormous development in mobile advertising. In 2015, for the very first time, more advertising was invested in mobile than on desktop ads. As everyone invests more time on mobile, with 3 hours and 8 minutes spent per United States adult daily this year, this trend will grow. The portion invest in mobile is forecasted by eMarketer to grow to 63% this year, 70% (or $65B) by 2019. When we take a look at mobile advertising, the development of Facebook, Twitter, and Instagram are the biggest elements; Facebook is forecasted to reach $6.3 billion in mobile income in 2016, more than 3x the mobile ad profits of Google.

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Programmatic advertising takes over

The growth of mobile advertising is mirrored by the development in programmatic advertising In 2014, just under half of all display advertising was bought programmatically, or through a technology platform and an API. In 2016, 67% of all display ads will be acquired programmatically. Mobile programmatic ad revenue will reach $9.3 billion this year according to eMarketer, and marketers in the United States point out mobile as having the most chance for programmatic purchasing. Both Facebook and Google have actually led this change, as their advertising products are programmatic.

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Customized, cross-channel marketing grows and consists of advertising

As marketers buy programmatic ads throughout multiple platforms– consisting of Desktop, Mobile apps, and Mobile web– it is ending up being critically important for advertisers to engage with their customers throughout several channels as specific people, not as confidential collections of interests or user devices. Marketers are leveraging Facebook Customized Audience, Twitter Tailored Audiences, and now Google Customer Match to align advertising to the CRM-based information they already use to direct the customer journey.

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Source: SalesForce