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Digital Advertising Spending Will Reach New Heights In 2020

January 10, 2020 Sarah Cavill

The recent release of the AdAge Marketing Fact Pack 2020 revealed “the internet in 2020 will account for more than half of both U.S. and worldwide ad spending.”

Digital Advertising Will Account For 53% Of Total Ad Spend

Photo from Shutterstock_93841948 Hand pushing dollar button on touch screen.

A growth of 6.5% in overall U.S. ad spend is anticipated in 2020 with a 12.4% jump in digital advertising to $135 billion, making up more than 53% of total ad spend. Worldwide, digital advertising will likely hit $336 billion, more than half of the predicted $656 billion globally across all media. Overall ad spend growth in 2020 could be twice as fast as in 2019, with financial services leading the way, anticipated to spend more than $53 billion in advertising.

The Olympics And Politics Are Big Players In 2020 Digital Advertising

The overall ad spend is likely to get a big bump from advertising during the Olympics and the upcoming presidential election, and digital advertising will play a significant part.

  • The Olympics are already on track to best the record-breaking 2016 ad revenue haul of $12 billion, with programmatic ad buying on the rise for advertisers looking to target consumers, and partnerships with social media platforms like Twitter likely to boost the digital advertising strategies for brands during the Games.
  • Politico estimates 29% of the more than $2.7 billion likely to be spent in the presidential election will be on digital videos.

Many Brands Are Still Spending Heavily With Digital While Also Diversifying

The digital ad spend in 2019 didn’t quite meet expectations, despite an overall rise of more than 2.5%. Brands are looking to shift tactics with predictions that 2020 will be a very strong year for digital and traditional advertising. For example, Booking Holdings recently increased spending by $175 million on TV, online video and online display ads, diversifying from their singular-focus advertising on Google. The forecast for ad spending by World Advertising and Research Center (WARC) predicts that most advertisers will continue to invest heavily in digital advertising, as consumers dependence on mobile and social increases.

Google, Facebook And Amazon Dominate Digital Advertising

The newly dubbed “triopoly” of Google, Facebook and Amazon will account for nearly 40% of global ad spending in 2020. According to CNBC, “Advertisers are set to spend 29.9% of their [advertising] dollars on TV, with 23.1% going to Alphabet-owned Google and YouTube, while Facebook is set to take 12.9% of total ad spend. Amazon, which has a growing ad business, is projected to take 2.5% of all ad dollars in 2020.”

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About the Author

Sarah Cavill

With more than 20 years of writing, editing and reporting experience, Sarah Cavill brings to Digital Media Solutions (DMS) a fine-tuned and diverse set of skills. Her work has been featured in notable publications including The Daily Muse, CBS Local, Techlicious and Glamour magazine. Sarah has a passion for current events and the deep-dive research that goes into the content development and brand identity of DMS Insights. In her role as Senior Marketing Communications Writer, Sarah contributes to the pitching, researching and writing of multiple stories published each week surrounding digital and performance marketing innovations in pop culture, news, social media, branding and advertising.

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