US retail digital ad spending will increase by 3.1% this year, to $28.23 billion. This is slightly faster growth than US digital ad spending overall, which will shrink to just 1.7% amid the coronavirus disruption. Retail will remain the largest digital ad spending vertical.
How does retail compare with other industries?
The retail industry will spend $8.61 billion more on digital ads this year than the next-closest vertical, financial services, and nearly $25 billion more than the lowest-spending industry, travel. Overall, retail will account for 21.0% of total US digital ad spend.
Which digital ad format will see the most spending?
The retail industry is extremely balanced in its approach to digital advertising. Retailers will spend 47.9% of their budgets on display ads and 47.5% on search ads. Within display, retailers will spend 48.4% on video ads.
Which platforms are favored for digital retail ads?
Mobile is king, but retail still overindexes on desktop/laptop ad spending compared with other industries. Retail ad spending on mobile will surpass $18 billion this year, and desktop/laptop spending will reach nearly $10 billion. Both of these figures far and away lead their respective packs, and for desktop/laptop spending, retail nearly doubles the next-closest industry.
How has the coronavirus changed our outlook?
Prior to the outbreak of the pandemic and subsequent decline in economic activity, we had forecast another strong year for digital retail ad spending, with 16.9% expected growth and spending above $33 billion. Our new numbers suggest roughly $5 billion less in spending than previously anticipated.
WHAT’S IN THIS REPORT? This report includes our annual breakdown of US retail digital ad spending. It includes a comprehensive overview of total digital ad spending, as well as estimates by channel, device and format, and how the coronavirus pandemic has affected these figures.
KEY STAT: US retail digital ad spending will increase by just 3.1% this year, for a total of $28.23 billion. Next year’s growth will rebound to 25.7%.
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