US retail digital ad spend on the rise, driven by mobile

Anne Freier

In Mobile Advertising. May 16, 2016

New research from eMarketer finds that the US retail industry is set to spend $15.1bn in paid online and mobile media ads this year. That spend is set to grow at a CAGR of almost 12% to reach $23bn by 2020. Retail, which includes brick and mortar shops, catalouge order as well as online merchants, will be the biggest advertising spender in the US through to 2020 at least. eMarketer previously forecast that mobile ad spend is set to increase 52% in 2016.
The US retail industry leads digital ad spend
According to Duke University research, digital marketing such as paid ads and digital tactics are increasingly more important. The survey found that US retail marketers expect their spend to increase 20.3% compared to 12% for traditional ad budgets.
Marketing spend changes
eMarketer attributes this increase in investment to retailers experiencing positive results in ROI.
Digital couponing marketplace RetailMeNot adds that over 75% of respondents in a recent study confirmed that their digital ad spend yielded a higher ROI than traditional offline marketing campaigns. Another 75%+ are happy to increase their digital ad budgets across all channels but with a particular focus on mobile and social.
Unsurprisingly, eCommerce retailers are spending the most within digital ads, Amazon ranks right at the top, followed by Netflix and Etsy.
Retailers by digital marketing spend
eCommerce now drives over half of total growth within retail, according to 2015 US Department of Commerce stats. Whilst competition is increasing, retailers continue to grow their digital ad budgets. For example, Amazon increased digital advertising expenditure by almost 25% in 2015.