IAB/PwC data shows that brand advertisers doubled their spending on podcasts in 2018 and an Advertiser Perceptions survey commissioned by Westwood One in May showed 39% of advertisers and ad agencies plan to spend more on podcasting. It’s why some have labeled 2019 as “the year of the brands” for podcasters. Now there’s new data on which ad categories may be the ripest targets for digital spending.
Retail is the largest category and new data from eMarketer projects its digital ad spend will increase 19% in 2019. In fact, digital spending at retail is set to double between 2016 and 2020: from $15.78 billion to $33.12 billion.
While U.S. financial services’ share of overall ad spending will remain flat for the next two years, the vertical is set to surpass automotive to become the second-largest ad spending category, because of a slowdown in overall automotive ad growth.
Finance firms are increasing their digital budgets, particularly for mobile, to target Millennials, eMarketer explains, while at the same time, automotive ad budgets are constrained by “macroeconomic conditions like tariffs, climate regulations and emission standards and changing consumer behaviors driven by technological change.” Overall, digital ad spending in the U.S. is forecast to reach $129.34 billion in 2019, up a hefty 19% year over year.
In 2020, travel will overtake consumer packaged goods as the fifth-largest U.S. digital ad spending vertical. Shifting consumer tastes are leading to more mergers in CPG, which are flattening ad budgets. Meanwhile, increased competition and a strong economy are causing travel companies to increase their marketing budgets.
U.S. healthcare and pharma ad spend is growing at a similar pace to other categories, but overall budgets remain small due to federal regulations and strict privacy laws. The category, in fact, will remain the smallest ad spending vertical through 2020. “We anticipate that healthcare and pharma will account for just 2.8% of total U.S. digital ad spend in 2019 and 2020,” eMarketer says.
Telecom advertising will account for 10% of total U.S. digital ad spending in 2019 and remain steady in 2020. Based on the firm’s analysis, mobile will account for 70% of total telecom digital spending this year and 74% in 2020—making telecom the most mobile-driven vertical among all categories represented: “Since telecom firms provide mobile plans and hardware, mobile ads are a practical and relevant way to reach their consumers,” the report says.
U.S. media and entertainment companies are increasing their digital ad spending at a greater rate than other categories because of competition among digital video and gaming platforms as well as healthy revenues in the music and film industries. Media digital video ad spend will increase 23% this year and entertainment video ad spend will increase 24%. Nearly four in 10 media and entertainment ad spend dollars will go toward video in 2019.