In 2020, the internet will be responsible for more than 50% of all ad spending. Tech giants have been spending their ad dollars online for the better part of the past decade, but new reports show that online advertising is the best bet for all types of businesses. Getting in front of consumer eyeballs can be difficult in the modern age. Consumers have so many different options when it comes to consuming media and many no longer visit physical stores.
However, online advertising does more than place advertisements in front of more eyeballs. With online advertising, brands can get their content in front of specific eyeballs. Customer targeting is more specific online and offers greater opportunity for hitting key demographics. When brands have a strong idea of their online customer, they can easily create ads that target those customers. Online advertising offers demographic choices from age to gender and income level.
Ad Age reported that in 2020, U.S. internet ad spending will increase by 12.4% and hit $135 billion. These numbers will only increase in the future as smaller brands continue to dive into the Internet advertising space. Billboard and print media spending is falling as are radio advertisements. Podcast advertising has increased as another source of hitting targeted consumers. Influencer advertising is also growing on programs such as Instagram and Snapchat. Online advertising opportunities allow brands to spend less money and find new creative ways to reach consumers.
Although many traditional advertising agencies have argued that brands should stick with traditional media ad campaigns, Ad Age offers statistics that say otherwise. For example, did you know that Americans 15+ are spending at least half of their free time watching TV but that those same Americans are spending 46% of their TV watching time browsing their smartphone device? This means that if brands want to target consumers and catch their attention, TV ads are easy to drown out but online advertisements will be seen as consumers browse their smartphone for mobile content. This trend, although perhaps not surprising, is significantly higher than many business executives anticipated. If you are responsible for advertising at your company, consider the role online advertising plays in your ad spend. It may be time for an increase.
