Digital Advertising – Retail Outspend Other Industries
Which includes paid advertising and unpaid strategies, lately we have seen exponential rise in spending in these promotional mix. US retail will invest $15 billion in paid online and mobile media advertising in 2016. Which will grow more than 11.9% compound annual growth rate ( CAGR) between 2015 and 2020 as per eMarketer report.
Retail includes brick and mortar, online catalog merchants of apparels, home furnishings and textiles, pet supplies, cosmetic, drugs, restaurants, appliances, jewelry and food to name a few.
As per Duke University digital marketing spending will increase to 20% and traditional ad budgets will fall 12.1%, forecast by US retailers.
Reasons for this shift:
- Bigger returns from digital marketing spends when compared to traditional offline marketing.
Social Media and Mobile marketing front leaders in the Digital marketing and Digital advertising space.
E-commerce sites are amongst the heaviest spenders in digital media, AMAZON spent $96.8 million in online channels – desktop display and paid search, but not video and mobile. Its digital marketing and ad spending from Jan to October 2015 increased 2406% compared with the same period a year earlier (Source InternetRetailer.com)