- The rapid growth of digital marketing will continue to push spend higher, while spend on traditional methods declines
Research firm eMarketer predicts that in 2019, U.S. ad dollars spent on digital channels will surpass the total ad spend on non-digital ad channels.
Digital includes desktop, mobile, search, and social media, while non-digital ad channels are television, out-of-home (billboards), radio, newspapers and magazines.
In 2018, eMarketer projects that digital ads were a $108.6B business, shy of the $114.8B spent on traditional channels. This cross between the two will occur in 2019, and by 2021 digital is expected to be a $172.3B business while traditional shrinks to $104.3B.
The conventional methods that have dominated the marketing and entertainment landscape are slowly becoming the alternative option due to the rapid growth in digital marketing. Digital is growing so quickly that it’s slated to surpass revenue from all of the old-school mediums.
This shift is a lift for the large digital advertisers than host most of the consumer traffic online. Facebook (NASDAQ:FB), Google (NASDAQ:GOOG) and Amazon (NASDAQ:AMZN) have continued to post record revenues, even though their dominance is shared amongst other smaller players.
Article by: Mick Ross
Mick is currently a full-time investor and formerly a buy-side analyst (2yrs) covering healthcare companies. Before that, he was a salesperson at a bulge-bracket firm, based in Dallas, Texas. Mick blogs to clarify and synthesize his investment thought process and to elicit feedback; additionally he likes to connect with other investors and swap ideas.