Retailers Dominate Digital Ad Spending

US Retail Industry Digital Ad Spending, 2011-2017

eMarketer projects retailers to continue dominating the digital ad spending category with total spend to increase to $9.4 billion in 2013. This represents a 14% increase over 2012 spending. In 2014, retailer spending is expected to top $10.4 billion and is expected to reach $13.3 billion by 2017.

Retailers already lead the digital ad spending category with 22.3% market share. The bulk of their spending, approximately 66%, goes to direct response ads; those ads designed to generate sales as opposed to ads dedicated to branding. Typical direct response formats include search, mobile messaging and classified ads.

Other industries forecasted by eMarketer to increase their digital ad spending over the next five years include financial services, travel and CPG (consumer package goods). Financial services and travel are heavily investing in direct response ads, while consumer package goods are more tightly focused on branding including banner ads and rich media.

On the flip side, consumer electronics (12.5%), telecom (11.1%), health care (6.4%), and pharmaceuticals (6.4%) are all growing their digital ad spending at a much slower rate. The US national average for digital ad spending growth is 14%.

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