Digital Ad Spend Overtakes TV For First Time in USA
For the first time in history, the amount of money spent on digital advertising in the US has surpassed that spent on TV – largely thanks to social media.
In a report prepared by PwC, digital advertising is shown to have risen by 22% in 2016 on the previous year, with a total of $72.5 billion spent. In comparison, TV ad spend for 2016 was at $71.3 billion across the US. Although the figures aren’t too far apart, the surge in digital spend across just 12 months indicates a quickly shifting audience, with more and more people opting to spend their time online instead of tuning in to the telly.
A large contributing factor to digital ad spend last year was social media, where spending went up 49% to a total of $16.3 billion. This could be for a myriad of reasons – the growing number of social media users, the US presidential election, or, from a marketing perspective, the availability of ever-growing targeting options that provide a better return on investment.
Many companies still shy away from advertising on social media, but those who utilise it to its full extent are reaping the benefits, like Boohoo, who nearly doubled their profits thanks to social media advertising.
We love digital advertising because it offers a wider reach at a fraction of the cost of more traditional formats, including print, television and radio – not to mention that it’s much easier to track conversion and interest, and you have powerful targeting options available to you to ensure that your advert reaches the right people.
It’s time to start investing in digital mediums now if you’re serious about growing your profits. If you can start taking advantage of everything digital has to offer, you may end up with a serious edge over your competitors.
Want to get a real return on your adverts? Our digital team can help!
Digital advertising is great – but it needs clever thinking and careful planning to make sure you drive sales effectively. Our digital marketing team will take your ads to the next level, whether you need a hand with display, search, retargeting or social adverts.
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