Note that these numbers are rounded, sometimes seriously so. Any marketer could memorize them. For more info see Gartner’s “The State of U.S. Advertising: 2017-2018,” by Haixia Wang (subscription required).


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Big Picture

  • Global ad spending: $500B
  • U.S. ad spending: $200B
  • Yearly growth rate: +4%
  • Brand spend vs direct response: 50 / 50%
  • Digital – brand vs DR: 30 / 70%
  • Global ad + promo* spend: $1Tr
  • U.S. ad + promo* spend: $440B

U.S. Ad Spend – Breakdown

  • TV ad spend: $70B
  • Percent of TV spend on cable: 30%
  • Radio, newspaper, mag ads: each about $17B
  • Out-of-home ads: $10B
  • Digital ad spend: $70B (yes, same as TV)
  • Percent of digital on search: 50%
  • Percent on banner: 30%
  • Percent on video: 13% aka $17B

U.S. Mobile/Vid Digital

  • Time spent on mobile by people: 2.5 hrs / day
  • Yearly growth rate: +20%
  • Time spent watching TV: 2.6 hrs
  • Yearly growth rate: none
  • Video ad spend mobile vs desktop: 2 to 1
  • Video ad spend brand vs DR: 2 to 1
  • Percent of Facebook ad spend from mobile: 80%

Ad Spend Concentration

  • Google + Facebook share of digital spend: 72%
  • Google + Facebook share of new ad spend: all
  • Top 25 sellers share of digital spend: 85%

Programmatic Advertising

  • Programmatic share of digital display: 80%
  • Direct/private deals vs open RTB: 70 / 30%
  • Share of all ad spend in programmatic: 10%
  • Share of all ad spend in open RTB: 3%
  • Percent of ads not viewable: 50%
  • Percent of ads fraud: 7%+

Consumer Trends

  • Cord cutters in the U.S.: 10%
  • Percent of video/TV time NOT on linear TV: 25%^
  • Ad blocking consumers: 10-20% by content type
  • Most common content types using blockers: gaming, adult
  • Percent product searches started on Amazon: 50%

* Promo includes direct mail, trade promos, co-op and telesales.

^ Non-linear includes OTT (e.g., AppleTV, Roku), DVR and SmartTV

Sources:
Advertising Age 2017 Edition Marketing Fact Pack

IAB Internet Advertising Revenue Report (2016)

BMO Capital Markets “Digital Marketing Hub 4.0” (3/17)

*This article is reprinted from the Gartner Blog Network with permission. 

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