Retailers Drive Growth in Digital Advertising

Retailers Drive Growth in Digital Advertising

Retailers are driving growth in digital advertising more than any other industry, according to new estimates by eMarketer.

The research company predicted digital ad spending in the U.S. will reach $58.61 billion this year, of which retailers’ ad outlays will comprise 22%. Retailers’ expenditures will be up 17% from a year ago to $12.91 billion.

The next biggest spenders in digital advertising in 2015 are estimated to be automotive and financial services advertisers at 12.5% and 12.3% shares, respectively.

Two areas retailers are investing more aggressively in than other industries include mobile and programmatic display ads.

Specifically in mobile advertising, retailers will spend almost twice as much as any other industry. The sector’s $6.65 billion will represent 23.2% of the $28.72 billion that advertisers in the U.S. will spend to reach consumers on mobile devices this year, eMarketer said.

It’s a similar story with programmatic ad buying. In 2015, the U.S. retail industry is forecast to spend $3.71 billion to purchase display ads programmatically, accounting for about 25% of the $14.88 billion that U.S. advertisers will spend on programmatic buys this year, eMarketer estimated.

In video, eMarketer said the retail industry will account for 19.9% of the $7.77 billion to be spent on digital video ads in the U.S. this year. The auto industry is the second-largest spender on the marketing format, allocating $1.1 billion this year, or 14.6% of all digital video ads outlays.


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$0.45 USD - $4.00 USD

Note: The accepted formula that Auxiliary Mode Inc. uses to calculate the CPM range is $0.45 USD - $25.00 USD.

The range fluctuates this much because many factors come into play when calculating a CPM. Quality of traffic, source country, niche type of video, price of specific ads, adblock, the actual click rate, watch time and etc.

Cost per thousand (CPM) is a marketing term used to denote the price of 1,000 advertisement impressions on one webpage. If a website publisher charges $2.00CPM, that means an advertiser must pay $2.00 for every 1,000 impressions of its ad. The "M" in CPM represents the Roman numeral for 1,000.

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