US digital display ad spending to surpass search ad spending in 2016

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Within the display umbrella, advertisers will invest the most on “banners and other,” a category that includes many types of native ads and ads on popular social sites like Facebook and Twitter, as explored in a new eMarketer report “US Digital Display Advertising Trends: Eight Developments to Watch for in 2016.” Overall, one in five dollars devoted to digital in 2016 will go to “banners and other” digital display ad types. Video will also command a large portion of ad spending allocated to digital in 2016: 14.3 per cent, up from 12.8 per cent in 2015.

Spending growth in the categories of rich media and video will both be significant: 36.4 per cent and 28.5 per cent, respectively. Rich media’s growth will be driven by growing adoption of “out-stream” and in-feed video ad formats, while video will grow due to publishers looking to capitalize on high-demand, high-value in-stream video ad inventory.

While desktop will remain the biggest beneficiary of US digital video ad dollars in 2016, garnering 57.5 per cent of an expected $9.59 billion in spending, the same cannot be said for the remaining display ad formats. Of the $22.58 billion that will go to banners, rich media, sponsorships and other display-based formats in the US this year, 77.5 per cent, or $17.5 billion, will be spent to reach individuals on mobile devices like smartphones and tablets.

Read the full article here

Source: eMarketer

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