Lime is one of the fastest growing startups ever. You see scooters everywhere. But companies like Fashion Nova use digital ads to garner over $200M in revenue. In our research report last month, we noted that digital ads surpassed traditional ads for the first time ever. Over 50% of people who see a social media e-commerce ad will end up buying a product or service. Unbelievable!
The global digital ad industry reached $283B in 2018, with $108B coming from the USA. Digital ads account for 45.9% of all types of ads globally, and that is expected to increase to 50.1% in 2019, according to eMarketer. Given the increase in the nominal and percentage forecasted digital ad spending, the industry is not projected to be affected by slowing economic global growth. The industry provides an appealing growth opportunity that is not affected by economic fluctuations and instability. Digital ad spending as total of ad spending has greater rates in developed countries compared to developing countries.
In 2019, the digital ad spending in the USA is expected to surpass the traditional ad industry. Traditional advertisement continues to dominate in developing areas. In 2018, digital ad spending exceeded traditional ads in 9 countries, and 3 countries are expected to join the list. Although digital ad spending is expected to increase across the world, the increase in the developing areas is not expected to surpass traditional advertisement in the near future.
The global ad spending industry is dominated by Google and FB with over 50% of market share. The market is dominated by a handful of companies, but these companies are losing market share, which can be attributed to the increasing popularity of social media apps like Pinterest and Snapchat. The biggest sector in the industry is search Advertisement which accounts for over 40% of the total industry. Social media ad spending comes in third place with $48B and 17% market share. The social media sector is the fastest growing sector in the industry, and is expected to grow faster than other sectors with search engine accounting for the biggest chunk in the near future.
What are the major keys to advertising online? Who does it best?