AdRevenueGrowth(US)BI Intelligence

KEY POINTS

  • Digital advertising will fuel strong growth in the US media market over the next five years as ad dollars migrate away from traditional advertising channels. Digital ad revenue will increase from $57.2 billion this year to $96.4 billion in 2020, for a compound annual growth rate (CAGR) of 11%, according to BI Intelligence estimates. Meanwhile, traditional media ad revenue will rise by a meager 0.4% CAGR.
  • Mobile will be the fastest-growing advertising channel and buoy spending on each of the digital formats. US mobile ad revenue will rise by a 26.5% CAGR, from $17.4 billion this year to $56.4 billion by the end of 2020.
  • Digital video ad spending is rising faster than search and display, as marketers embrace the format because of its stronger impact compared with traditional display ads. US digital video ad revenue will rise by a CAGR of 21.9%, to reach $13.3 billion by year-end 2020. Mobile's share of digital video revenue will reach nearly 50% in 2020, almost doubling from a 25% share this year.
  • Mobile search will overtake desktop search ad revenue by 2019. Total US search ad revenue will grow by a CAGR of 8.1% from 2015 through 2020, to $42.1 billion, with mobile driving the entirety of this growth. Mobile search ad spend will rise by a 25.2% CAGR, while desktop search ad revenue will decline by a CAGR of 2.8% during the same period.
  • Mobile display ads, including banners, rich media, and sponsorships, will overtake desktop display-related spending even earlier, in 2017. Total display spending will rise by a 12.7% CAGR to $33.2 billion in 2020. Mobile display spending will account for more than twice as much as desktop display spending at the end of the forecast period.
  • Social media ads, which cut across display and video, are seeing fast adoption due to social's massive audience, advanced targeting capabilities, and the availability of high-performing ad formats like autoplay video and mobile-app install ads. US social media ad revenue, which includes video and display ads, will grow by a CAGR of 14.9%, to reach $19.4 billion by the end of [...]