Online ad spending to hit $77 billion by 2016

By 2016, online ad spending in U.S. will total $77 billion, which comprises 35 percent of overall ad spending, according to a new study by research firm Forrester.

Mobile ads will surpass social ads and email marketing this year, and hit $8.2 billion in revenues by 2016, as advertisers will want to reach consumers while they’re on the go, either on mobile or tablets, not just searching at their desk, Forbes reported.

Search ads will lose its market share from 55 percent to 44 percent. No wonder Google is stepping aggressively into display and mobile advertising, as well as social media.

Display ads will rise to nearly $28 billion, or 37 percent of total online ads by 2016 as brand ad spending hikes online. Display ads provide more image-oriented messaging, compared to other direct-response search advertising. Also, advertisers will like to reach people in particular on social media sites, instead of just while searching on Google.

In addition, daily deals will drop, said the study author Shar VanBoskirk. “Consumers will grow so conditioned to micro-impulse offers that they’ll lose practice at considered decisions — in all walks of life, not just when buying spa treatments. Facing a cultural descent into maladroit judgment, employers (and spouses) will blacklist impulse deals to keep people intentional,” Forbes reported.

Image: Forrester

This entry was posted in Display advertising, mobile advertising, online advertising, Search, Social media. Bookmark the permalink.

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