NA/US digital advertising breakout

Part
01
of one
Part
01

Digital Advertisement Market Spending

In the U. S. the total advertising spend by companies and other entities in 2016 is estimated to be between $70 billion and $72.5 billion. The following is a comparison of digital advertising spending as reported and presented by Interactive Advertiising Bureau (IAB) and eMarketer.

Interactive Advertising bureau (iab) breakdown

According to an industry survey conducted in April 2017 by Price Waterhouse Cooper sponsored by Interactive Advertising Bureau (IAB), the following is the digital advertisement spending breakdown for year 2016:

The total advertising spend in 2016 amounted to US $72.5 billion.

i. Mobile adverts spend was $36.98 billion, which represents 51 % of total digital ad spending.
ii. Search engine adverts spend was $17.4 billion, which is 24% of total digital ad spending.
iii. Banner adverts spend was $8.7 billion, which is 12% of total digital ad spending.
iv. Video adverts spend was $5.075 billion, which is 7% of total digital ad spending.
v. Other digital adverts spend was $4.35 billion, which is 6% of total digital ad spending.

Therefore, the sum total of the digital advertising spending by IAB in 2016 amounted to:
$(36.98+17.4+8.7+5.075+4.35)= $72.505 Billion

Additionally, social media advertising revenue total was $16.3 billion while the audio advertising revenue accumulated to $1.1 billion.

e-MARKETer BREAKDOWN

According to Magna Global's Global Advertising Revenue Forecasts report, as of December 2016, eMarketer projected the total digital advertisement spend in the U. S. was approximately $70 Billion for 2016. The $70 Billion includes rounding of advertising spend in several categories, such as spending on tablets and smart phones that accommodate various formats such as display, video, search and social ads.

The total amount spent in digital advertising amounted to $70 billion.

Desktop adverts generated $37 Billion,
Mobile adverts generated $33 Billion,
Search adverts generated to $35 Billion,
Social adverts generated to $16 Billion,
therefore, the figure amounts to $(37+33+35+16)= $121 Billion

observed Differences

The difference, $(121-70)= $51 billion, consists of duplicate amounts spent on mobile adverts which integrate into other digital adverts. The dynamism of the mobile adverts and its availability in different formats, mirror other digital advert forms such as SEO, social, video and display adverts and also envelope desktop and mobile advertising which are accessed through tablets and smart phones. Hence, IAB and eMarketer have a comparable sum total of $70 Billion generate from the common digital channels which include mobile ads, SEO ads, video ads, social ads, desktop ads and banner ads.

Conclusion

The advertising industry in the U. S. is very profitable and attracts great investments. The uniqueness of the various brands acts as the driver of the industry as it encourages healthy competition. The potential of the industry remains to be exploited as it is continually growing given the dynamism of digital advertising.
Sources
Sources