Online Advertising (US Market)

Main article: US Economy

2021: U.S. Digital Signage Market Soars 35% - PwC

In 2021, the American Digital Signage market soared 35% over 2020 and reached $189 billion. Such data analysts PwC released in mid-April 2022. According to their calculations, all the main channels for the distribution of Digital Signage showed significant growth, especially digital video (including CTV/OTT), digital audio, social media and search.

Streaming media is far ahead of the entire industry in terms of growth, although the industry still faces uncertainty related to privacy regulation, the rejection of the use of third-party cookies and identifiers. In the sphere, there are also problems of measuring and transparency of the supply chain, and large brands invest in digital technologies.

US Digital Signage market soars 35% - PwC

Streaming media figures for 2021:

• Digital video remains one of the fastest growing channels, increasing by 50.8% compared to 2020, with a total revenue of $39.5 billion.
• Digital audio showed the highest growth compared to 2020, increasing by 57.9% to $4.9 billion.
• The volume of advertising on social networks increased by 39.3% to $57.7 billion, as consumers continue to use the platforms Meta, Snapchat, TikTok and Twitter.
• Despite a significant increase in income from the search for 32.8% in 2021, profit did not grow as much as other areas, which led to a slight decrease in the total share of income by a decrease of -0.8%.

The main volume of revenue from Digital Signage in 2021 was 78.6%, brought by 10 digital publishers and platforms, the names of which are not specified in the report - IAB Internet Advertising Revenue Report: Full Year 2021. The report includes data reflecting Internet advertising revenue for computers and mobile devices from websites, commercial online services, advertising networks and exchanges, mobile devices and email providers, as well as other companies selling advertising on the Internet. In 2020, Digital Signage accounted for 78.1%.^[1]

2019: Share of programmatic advertising 82%

The share of programmatic advertising in the US Digital Signage market in 2017-2019 with a forecast for 2020-2021

2018: Top 20 Internet giants by size of Internet audience

Internet companies by audience size

2017: Online advertising volume in the United States grew by 21% and overtook TV revenues

Online advertising in the United States reached a record high of $88 billion, according to an IAB and PwC report. This is 21% higher compared to $72.5 billion last year. For the first time, Digital Signage revenues overtook television revenues.

The mobile segment accounted for more than half (57%) of all online advertising, or $49.9 billion, which is 36% more than a year ago. The volume of advertising in the video segment amounted to a record $11.9 billion in 2017, an increase of 33% compared to $8.9 billion in 2016. At the same time, revenues from mobile video advertising amounted to 54% of all revenues in this segment, or $6.2 billion.

2015

Google and Facebook occupy 52% of the US mobile advertising market

The volume of the entire American mobile advertising market in 2015 eMarketer estimated at $30.5 billion^[2].

At the end of 2015, Google and Facebook occupied 52.3% of the total US mobile advertising market.

• Google's share was 32.9%, or $10.02 billion,
• Facebook share - 19.4%, or $5.9 billion.
• In third place is Twitter with a share of 3.8%,
• on the fourth - Yahoo! with a share of 2.9%,
• in fifth - Apple (iAd) with a share of 2.6%.

In 2016, media advertising by budget will be ahead of contextual

In January 2016, eMarketer analysts predict that in 2016, media advertising (display advertising) will be ahead in terms of contextual advertising (search advertising) in the United States.

Media advertising costs will amount to $32.17 billion, contextual - $29.24 billion. In the future, the cost gap, according to eMarketer estimates, will only grow.

The combined share of media advertising (including videos, sponsorship ads, banners and other advertising formats, as well as the so-called rich media segment - banners/advertising blocks with interactive content) is expected to reach 47.9% of the entire US Internet advertising market in 2016.

Expenditures on banners and other formats will grow from $11.57 billion in 2015 to $13.39 billion in 2016. Costs for the video segment in online advertising will increase from $7.46 billion in 2015 to $9.59 billion in 2016.

The main share of video advertising expenses on the Internet will be spent on desktop advertising (desktop, stationary computers) - 57.5%^[3]

At the same time, the main share of expenses for banners, advertisements rich media, sponsored publications and other media formats will be concentrated on mobile devices - 77.5%.

2014: The US online advertising market grew to $49.5 billion in 2014

Revenue in the Internet advertising market USA in 2014 increased to a record $49.5 billion, which is 16% more than last year's figures ($42.8 billion), according to a study conducted by Interactive Advertising Bureau (IAB).

According to the study, revenue in the Digital Signage segment in the States in the fourth quarter of 2014 reached $14.2 billion, which is 17% more than in the same period of 2013.

Online media advertising grew by 5% over the year, from $12.8 billion to $13.5 billion. It accounted for 27% of the market - the largest share.

Digital video advertising as a type of media advertising earned $3.3 billion in 2014, 17% more than a year earlier ($2.8 billion). The volume of revenue from advertising on social networks increased over the year by 57%, from $4.5 billion to $7 billion.

The mobile advertising market in the United States reached $12.5 billion in 2014, which is 76% more than in 2013 (then this segment amounted to $7.1 billion). Thus, mobile advertising became the second largest industry in the American Internet advertising market and took 25% on it, while in 2013 it accounted for 17%.

The most money spent in the United States on online advertising is still invested in retail advertising - it accounts for 21% of investments. It is followed by financial services (13%) and automotive advertising (12%).

2013

Adobe Research

• By data [1] issledovaniyaadobe, the carriers of advertizing which are least loved in the USA are social media, digital magazines and applications while preferable - printing editions and TV.
• According to the same Adobe study, none of the respondents would like to see ads in applications and only 2 and 3%, respectively, would prefer social media and news sites to other advertising sites.
• In an Adobe study, 54% of respondents said banner ads do not work. According to another study, the average CTR of advertising on the site is 0.1%, the standard banner is 0.04%.
• In 2013, 41.4% growth in video advertising on the Internet is expected compared to 2012.
• It became known that by Christmas Facebook will begin to sell video ads. Earlier, Twitter, on the eve of its release on the IPO, announced its intention to collect user data for selling ads on sites and mobile applications.

The creators of Adblock Plus, a browser extension to block annoying online advertising, published in December 2013 a forecast for the development of the advertising industry for 2014. Adblock Plus predicts three trends in the new year:

• Growing intolerance of obsessive advertising. Users will strike back online advertising, which follows from the annual increase in the number of downloads of blockers. 2014 will be the year when people try to regain the Internet.
• Market response. It is time for the advertising industry to draw conclusions from the simultaneous growth of investments in online advertising and the number of downloads of blockers. In the interests of the industry, compromise with "protesters" users, making advertising less intrusive.
• Increasing user awareness. In 2014, users will be able to get an idea of ​ ​ the content of the "black boxes" of online advertising. For many years, Internet surfers have not known how advertisers experiment with new advertising formats, invisibly tracking their activity. However, solutions such as the Lightbeam plugin for Firefox and blockers gave users the opportunity to regain control of the network.

In the USA, the volume of online advertising for the first time exceeded the volume of television advertising

In the United States, the Internet advertising market at the end of 2013 amounted to $42.8 billion in volume, reaching an absolute record (this is 17% higher than the characteristics of 2012 year: then the volume of this market amounted to $36.6 billion), according to a new report by consulting company PricewaterhouseCoopers, made for Interactive Advertising Bureau. The increase in the Internet advertising segment was 17%, and mobile advertising showed a three-digit one of 110%.

Time spent by people on different types of media and shares of advertising costs on different types of media in the USA in 2013^[4]

It is noted that for the first time, the budgets of American advertisers online exceeded the expenses of advertisers on TV (in 2013, the revenue from television advertising amounted to $40.2 billion). IAB President Randall Rotenberg believes that digital devices have long proved their effectiveness in attracting and reaching audiences.

Video advertising on the Internet increased by 19%, budgets increased from $2.3 to $2.8 billion. And the media advertising segment added 7% ($12.8 billion), search - 9% ($18.4 billion). Over the year, investments in mobile advertising increased from $3.4 to $7.1 billion, and its share almost doubled - from 9% to 17%.

If we talk about quarterly revenues, then according to the results of the 4th quarter of 2013, the volume of the South American Digital Signage market grew by 17% compared to the same period in 2012 - from $10.3 billion to $12.1 billion.

Also, during the study, it was possible to establish that the largest investments in online advertising are provided by retail representatives. The volume of their investments in Digital Signage in 2013 amounted to about 21% of the total number of investments.

2011: Up 22% to $31.7 billion

According to a joint report by IAB and PriceWaterhouseCoopers, the Internet advertising market in the United States grew by 22% in 2011 compared to 2010 and reached a record $31.7 billion.

2010: Internet media bypassed print by advertising income

For the first time, the Internet media overtook print publications in terms of audience size and advertising revenue in the United States in 2010. This is stated in the next annual State of the News Media report published by Pew Research Center.

According to the study, 46% of Americans surveyed read news in the Internet media at least three times a week, while only 40% of respondents regularly view materials in print newspapers and on their sites.

Press advertising revenues in 2010 fell by 46% compared to four years earlier and by 6.4% compared to 2009 - to $22.8 billion. Online press revenues at the same time increased over the year by 13.9% (or $3 billion) to $25.8 billion, according to the authors of the report, citing data from the research company eMarketer.

"We see that the transition of the media to the Internet is accelerating. This is facilitated by the rapid growth in the popularity of tablet computers and an increase in the distribution of smartphones, "said Tom Rosenstiel, head of the Project for Excellence in Journalism at the Pew Research Center.

Analysts note that for the Internet media, not everything is smooth, despite the steady growth of advertising revenues. A significant share of finance in this area settles in the pockets of search engines, not reaching the creators of the content. The difficulty for online news publications is that a large share of advertising spending, 48%, falls on search ads, while the publications themselves get only a small part of them. News aggregators that earn on the provision of other people's content to users also significantly reduce the possible revenues of online publications.

In addition, experts say that large online media began to make significant efforts to search for new sources of income on the Web, while earlier they tried primarily to increase the volume of content produced.

Another important factor in the development of the general media market in the United States, the authors of the report call mobile Internet. Almost half of Americans surveyed (47%) said they periodically read local news using their mobile devices. Most often, this way you get access to local news or information about nearby establishments, such as restaurants, shops, etc.

2001-2009

US Online Advertising Market Dynamics

Internet advertising spending in the first quarter of 2009 was $5.5 billion, 5% lower than in the fourth quarter of 2008 ($6.1 billion), according to a study by Interactive Advertising Bureau and PricewaterhouseCoopers.

Traditional media on the Internet

2009

The Internet (advertising and subscription) in 2009 brought US publishers $902 million (estimated PwC)), which is only 6% of their total revenues. As Morgan Stanley analysts point out, publishers who have been implementing a clear Internet strategy for several years and, moreover, receive noticeable online income not only from advertisers, but also from loyal readers who are ready to pay for access to content and additional services have been able to improve financial performance amid the overall fall in print advertising in the crisis.

As follows from the reports of the Pearson group (owns the Financial Times newspaper and the Economist magazine) and the New York Times Company (NYT, publishes the newspaper of the same name), the revenues of these publications on the Internet have increased markedly in recent years. If NYT's total revenue growth in the second quarter of 2010 year compared to the same period of 2009 year amounted to 1.2% (up to $586 million), then revenues from online advertising grew immediately by 20.5% (up to $94.3 million). Thus, in the network, the newspaper earns 16% of revenue, and this is the main source of growth in its operating profit, which increased in the II quarter by 40%.

FT Group, thanks to "digital services" (primarily on paid subscriptions to sites), received 36% of revenue in the first half of 2010. Most of the Financial Times and Economist materials on the network require paid access. On traditional advertising, the FT Group earned only 45% of revenue in the II quarter.

Advertising in print versions of newspapers and magazines has always brought most of the revenue to publishing houses. Therefore, in a crisis when advertisers reduced budgets in the print media, such dependence did not affect their financial situation in the best way. Some large publications were forced to sell shares. The last example is French Le Monde. According to the forecast PricewaterhouseCoopers (PwC), only in 2013 can we expect an increase in paper press revenues by 0.6%. Until that time, publishers' income from traditional advertising will fall.

2010

The decline in revenue forces newspapers, especially large ones, to actively reduce their staff, firing reporters and editors.

Today, news departments in the United States average 30% fewer employees than in 2000, the report says. In addition, the fall in income forces newspapers to more actively promote their online versions and take money from users for access to materials on their sites. So, in the near future, The New York Times plans to launch a paid model of access to content.

See also

• Online Advertising (Global Market)
• Online advertising (Russian market)
• Video advertising on the Internet (Russian market)
• Online advertising (European market)

Notes