A look at digital advertising spending
As the end of 2018 nears, agencies and marketers are anxious to see which shifts are made and what figures will be revealed in the advertising industry. All eyes are on digital to see how much advertising dollars will shift to non-traditional platforms, what the advances are in new placement opportunity (particularly video and mobile inventory) and most stimulating, where are digital advertising dollars landing and who is playing.
Why is spending on digital advertising going up?
Digital has been stealing ad dollars for some time now. A few major factors:
- Newspaper decline
- The rise in streaming content (and how popular its convenience is)
- The shift in where consumers are spending their time.
The trend is a classic case of follow the eyeballs .
What do the numbers look like?
North America is shaping up to be the top advertising market in 2018 with a 37.0% share of worldwide total media, according to eMarketer, with an estimated $107 billion dollars going to digital advertising alone. That estimate may be a little aggressive, as a survey from a statista.com source reports digital ad spend in the US is projected to amount to $117.53 billion dollars in 2020. Regardless, overall digital ad spend worldwide claims staggering amounts of ad budgets and, revealed just this month, Amazon is projected to bring in $4.61 billion in ad revenue on their platform alone worldwide (which makes up only 4.1% of US digital ad spending).
Where/who are the advertising dollars going to?
The behemoths of digital ad revenue generation are Facebook and Google Amazon has been revealed as the 3rd largest digital ad seller in the US, surpassing Oath and Microsoft. This is a huge shift in industry leaders as Amazon successfully doubled its revenue this year to earn the 3rd position. Amazon plans to extend the huge growth spurt and increase more than 50% per year through at least 2020.
Who are the big-spenders?
Looking comparatively between markets, retail is by far claiming the largest piece of the overall digital ad spending pie. Automotive and Financial Services are revealing themselves as aggressive digital ad spenders.
It is also worth noting that B-to-B marketing is also following the digital ad spending path. Coming in just behind in-person trade shows, conferences and events, digital advertising is finding its place with B-to-B marketers. A few factors play a part in the mind-shift of B-to-B marketers utilizing non-traditional media:
- Ability to measure and understand who their digital audience is
- Ability to measure how they are reaching them
- Ability to execute with often much less costs
- Ability to focus on, and generate qualified leads (through platforms such as paid search on Google and Bing)
- Ability to scale brand awareness
What to watch
OTT platforms , which have a small but growing share of the market, deserve the attention of marketers and offers opportunity for advertisers to dominate the space in its seemingly infant stage. This year, Roku’s U.S. ad revenues will surpass $293 million, up 93% over 2017 and Hulu’s U.S. ad revenues will increase by more than 13% to reach $1.12 billion, according to Forbes.
Facebook is projected to gain the most from digital holiday ad spending. According to Reveal's holiday ad spending report, businesses reported that two-thirds of their ad spending will go to digital channels, and of those companies, 42% will focus on Facebook, and another 18% on Facebook-owned Instagram. With Instagram rolling out Shopping in Stories , e-commerce brands stand to set huge records in online purchases.
To compare: social media spending will be more than one-third (36%) of holiday ad budgets; followed by email marketing at 15%; TV at 15%; print at 14%; search engine marketing at 7%; radio at 3%; and digital display ads also at 3%.

If you've been orbiting the digital marketing world for long, you'll know all about Google's plans to abandon the third-party cookie by 2022. The rules for cookies have already started to change thanks to the California Consumer Privacy Act (CCPA). Visit any website, and you'll get a "do you accept this cookie" pop-up. The fight for privacy and owning your data on the internet is just beginning. But what does it mean for marketers?
First, this only affects third-party cookies. Websites that track abandoned shopping carts or where you have chosen to log in will still be active and working. ( x) Those effective ads that follow you around to remind you to come back and buy? They are here to stay!
Second, even though we're losing access to visitors’ individual data, Google already has a plan in place to target ads effectively. Google created the Federated Learning of Cohorts (FLoC)for this very purpose. The goal of the FLoC is to "provide an effective replacement signal for third-party cookies." ( x) Any Google device or product you use will still file away your internet habits for advertising purposes; it will just be less precise. The idea is to shift people from individuals into broader categories. Those categories are what marketers will be targeting moving forward. If you're looking up how to replace a car battery on YouTube, you'll most likely be shifted into the "repairs vehicles" category and served ads accordingly. If we've learned anything from Facebook's targeting practices, it's that they can get very granular with those categories.
The main takeaway from the loss of the cookie is that marketers everywhere will have to be more strategic about their targeting plans. Utilizing advertising avenues that never relied on cookies is a great place to start. Paid search, emails, and social media are just a few areas of focus that generate clicks and customers while not relying on cookies. Leveraging traditional media alongside digital will also be vital to help grow your audience and brand awareness. As always, you can reach out to our digital marketing team of experts to help you navigate the change.
The cookie might be dead, but personalized digital marketing is still alive and well.

Although 2020 saw the rise in popularity of Tik Tok, there is another platform that marketers should focus on, especially if they are looking to hit a younger demographic. Snapchat remains one of the most popular social media apps for people under the age of 25. Snapchat was the originator of Stories, before Facebook and Instagram picked them up, and pioneered the idea of temporary interactions in the social media world. Before Snapchat, social media platforms were focused on permanence and timelines, and Snapchat decided it was time to freshen things up.
Snapchat statistics
- About 249 million people use Snapchat every day*
- Snapchat reaches 75% of millennials and Gen Z*
- Snapchat estimates the average daily user accesses the Snapchat camera more than 20 times per day**
Building Snapchat ads
If you’ve ever done any Facebook/Instagram advertising, the options are fairly similar. You first choose your campaign goal: brand awareness, web traffic, video views, lead generation, conversions and more. Next you set your budget. Snapchat offers affordable advertising with a $5 per day minimum budget. After you set your location, you can select your demographic targeting. One perk of Snapchat’s demographic options is that you can select an age range from 13-50+.
Also similar to Facebook, Snapchat has a large variety of audience targeting to choose from. But unlike Facebook, Snapchat is very transparent where the data is coming from. Data sources include Comscore, Placed, Experian, Datalogix and more, and are listed right next to the audience selection. Snapchat’s audience include various lifestyles, specific film/tv interests, specific food/beverage consumers, sports preferences, shopping habits, TV network and daypart viewers, and so much more! The opportunities for targeting are endless, and any brand can easily find audiences that fit their target market.
Ad Formats
Snapchat offers many ad formats, but the content that works best on Snapchat is video-driven storytelling. You can easily upload images that will be converted into a video if you do not have a video to use. You can also create filters to represent your brand in a fun way. Finally, a somewhat new offering are collection ads, which allow advertisers to showcase multiple products with thumbnail-sized images at the bottom of the ad.
If your company isn’t utilizing Snapchat, it may be time to give it a try. If you are looking for help creating and managing Snapchat or any other social campaigns, our in-house team of experts is happy to help.
* https://forbusiness.snapchat.com/
** https://www.oberlo.com/blog/snapchat-statistics








