Significant Spending Growth in Native and Video Projected for 2016

In 2016, 47.9% of digital spending worth $32.17 billion will be dedicated to banners and native ads, video, rich media and sponsorships according to eMarketer. Advertisers will concentrate their spending on banners and native ads with video coming in a competitive second.

US Digital Ad Spending in Display by Format 2014 - 2019

Numbers Behind the Growth

Banners and native advertising includes all social advertising. 1 in every 5 dollars spent to be allocated to banner ads and native in 2016.

Overall, video advertising spend will grow from 12.8% in 2015 to 14.3% in 2016. Within the display category, video will command 30% of dollars spent.

[bctt tweet=”Video advertising spend will grow from 12.8% in 2015 to 14.3% in 2016.”]

The growth in video advertising will be driven by increases in premium video ad inventory from publishers. Formats like in-stream video will be in high-demand.

Mobile vs Desktop

Mobile will not take the lion’s share of the digital video ad dollars in 2016. Instead, the majority, 57.9% of the video ad spend will go to desktop. This trend towards desktop is expected to continue through 2019.

[bctt tweet=”Desktop will continue to dominate US digital spend in video advertising in 2016.”]

The banner and native ad category has the opposite trend. Over 77% will be spent on mobile screens in 2016.

3 Years From Now

In 2019, eMarketer projects total US spend on digital advertising to approach $93.70 billion. The display category will continue to dominate ad spends commanding 49.8% of digital ad dollars.

US Digital Ad Spending in Display by Format 2016 vs 2019

Within the display category, there will be slight shift in the proportion of the spends. Native and banner ads will decrease from 42% in 2016 to 38% in 2019. Video ad spend is expected to increase from 30% to 32%.

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