Digital Ad Spend in 2019 and Plans for 2020: What You Need to Know

Digital Ad Spend in 2019 and Plans for 2020: What You Need to Know

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2019 was a big year for digital advertising. Despite rumblings of a global recession, and subsequent talk of a dip in global ad spend, the industry is thriving.


As we enter a new year, industry experts project a continued rise in digital ad spending across the globe. In the first half of 2019, global ad spending reached $57.9 billion as brands across sectors evolved their digital strategies. And, recent reports suggest that in the US alone, digital advertising has now surpassed traditional media in terms of investment.

Here we glance at digital ad spend in 2019 and what this means for the industry in 2020, and beyond. 

Let’s start by looking at some global digital spending insights.

 

Global digital ad spending insights for 2019

As more businesses migrate towards a digital existence and technology continues to progress, online ad spending is on the rise.

On a global scale, digital advertising investment across sectors reached the $562 billion mark compared to $399 billion in 2010.

It’s clear that the digital advertising space has seen a sure and steady growth over the past decade. The widened scope of digital advertising mediums coupled with a rise in digitally native consumers have without a doubt, served to catalyze this striking global trend.


To put the power of the digital ad into perspective, here are essential insights you should know:

•  In the US, the retail sector ($28.33 billion) was responsible for the lion's share of digital ad spend, closely followed by the automotive ($15.91 billion) and financial services ($15.69 billion) industries.

•  Digital advertising accounted for around 50.1% of global ad investment in 2019.

•  In 2019, Google, Facebook and Amazon ads accounted for 70% of global digital advertising revenue.

•  With exponential growth in 2019, experts predict that the native advertising sector will be worth $400 billion by 2025.

Consumer paying with credit card for his online order

What this means for digital advertising in 2020, and beyond

The digital advertising sector is strong. Definitive stats and insights from 2019 demonstrate the rising value of digital advertising across continents and industries—which means that we can expect things in 2020.

Digital advertising

In 2020, global digital ad spend across mediums is expected to increase, particularly in the retail, telecoms, financial services, and consumer electronics industries.

While spending slowed slightly during the second half of 2019, particularly in the US, the industry remained healthy in terms of development as well as maturation.

Mobile consumption, social media, and new innovations within the digital advertising industry mean that marketing spend broadened in 2019—a trend that is likely to continue it course trajectory in 2020, and beyond.

As consumers crave more value from the content they consume and the brands they interact with, native advertising saw a significant boost in 2019. And, in 2020, this innovative marketing medium will go from strength to strength.

Native advertising

During 2019, advertisers in the US spent nearly $44 billion on native advertising. Plus, mobile ad placement made up around 85% of all spend in the US.

The seamless, value-driven nature of native ads are integral to offering today’s digital natives an distraction-free user experience while showcasing direct solutions to specific problems or pain points.

Native ads earn 53% more views than traditional display ads. Moreover, native advertising boosts purchase intent by 18%. In 2019, native ads accounted for almost two-thirds of global display ad spending—a stat that is difficult to ignore.

In 2020, native ad spending will continue to flourish and as new innovations emerge, we expect to see:

• An increase in native advertising investment across mobile and social media channels.

• Native advertising to become more prevalent in video streaming across platforms and mediums.

• New innovations will emerge within the industry as native ad spending rises and more brands enter the arena.

“The best marketing doesn’t feel like marketing.” – Tom Fishburne

Native advertising is one of the world’s fastest-growing digital marketing mediums. As a performance-driven content recommendation and discovery platform, AdStyle works directly with editorial, content-based publishers, including news platforms, using innovative technology to display sponsored content that will speak to your audience on a personal level.

To find out more about us and what we do, contact us. And for more invaluable native advertising insights, read our guide to appealing to the Millenial reader base.