Research firm eMarketer has just upgraded some of its industry benchmark predictions for digital advertising spending in 2016. According to the firm, video, social media, but mobile in particular have driven predictions higher across all industry sectors covered in its report.
Digital ad spending driven by mobile and video
For example, US digital ad spend for the automative industry now totals $9.13bn. That’s an increase of 22.4% from 2015. During the second half of 2016, automakers noted slow sales, which ultimately drove advertising expenditure.
Patricia Orsini, Analyst, eMarketer, explains that automakers have been boosting their display ad spending and particularly their video dollars.
“Another sector where TV has traditionally been a large part of ad budgets, automakers are transferring impactful video campaigns to digital. BMW’s 11-minute film, ‘The Escape’, was a branded content effort that racked up millions of views on YouTube. Toyota and Ford employed virtual reality to tell their brand stories. And Facebook is being employed as an influencer channel.”
The financial services industry saw an increase of 19.5% totaling $8.77bn in advertising spend from 2015 to 2016. Financial companies are keen to use digital and mobile ads to boost their apps and online banking tools, which ultimately cut their running costs of branches.
Travel also noted a big jump, up 20.5% from 2015 to $5.96bn in 2016. Hotel chains in particular have been working hard for independence from online travel agents through loyalty programmes as well as discounts. In addition, they’ve begun to utilise Facebook as a good way to target relevant consumers.
“Travel brands are also using virtual reality and 360-degree video to give consumers a taste of what they might experience if they book their travel through their hotel, airline or resort. At the same time, hotel chains are working to reclaim bookings from online travel agencies (OTAs) via stronger loyalty programs and updated hotel properties aimed at millennial travelers. These efforts have increased spending on social media platforms and search.”