Ad spending, particularly on mobile, to help push ecommerce sales to record levels this year
Bolstered by growing ecommerce sales and time spent across digital channels, the US retail industry will grow its digital ad spending more rapidly this year than in 2012, according to new figures from eMarketer.
By the end of this year, eMarketer predicts, US retailers will have increased digital ad budgets by 15.7% to $9.50 billion, following growth of 14.5% last year.
Much of that spending can be expected to focus on drawing holiday shoppers, as the last months of the year account for a disproportionate share of retail revenues. eMarketer predicts 23.5% of all US retail ecommerce sales this year, for example, will take place in November and December, amounting to $61.8 billion. eMarketer estimates US retail ecommerce sales will grow 16.4% to $262.3 billion this year.
Retailers already spend more than any other vertical industry on digital advertising, and this year’s increases are expected to give the industry a 22.3% share of total US digital ad spending—identical to last year’s share. This figure is expected to fall slightly in coming years as the overall market grows slightly faster than retail.
Research suggests much of the incremental digital ad growth coming from retailers is going toward mobile advertising, particularly search, as well as select mobile display venues with large audiences and strong targeting, like Facebook and Twitter.
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