Telecom and Computing Products, Consumer Electronics Industries Strengthen Relationship - eMarketer
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Telecom and Computing Products, Consumer Electronics Industries Strengthen Relationship

Telecom digital ad spend more than $2 billion that of computing products/consumer electronics

May 22, 2015 | Media Buying | Technology | Telecom

Digital ad spending by the US telecom industry isn’t the highest among all verticals, but it is probably the most mature, according to a new eMarketer report, “The US Telecom and Computing Products and Consumer Electronics Industries 2015: Digital Ad Spending Forecast and Trends,” part of our new report series, “Digital Ad Spending Benchmarks by Industry.” Between 2014 and 2019, digital outlays by telecom advertisers will grow at a compound annual growth rate of 11.4%—lower than any other industry. This year, digital ad investments will reach $6.49 billion, eMarketer estimates.

US Telecom Industry Digital Ad Spending, 2013-2019 (billions, % of total digital ad spending and % change)

That will account for 11.1% of all digital ad spending in the US, making telecom the fourth-largest contributor of any industry. Despite slower-than-average growth throughout the forecast period, telecom will maintain its fourth-place spot, after retail, automotive and financial services, through at least 2019. This year, 56% of that spending is expected to go toward direct-response advertising, as opposed to branding-oriented efforts.

The computing products and consumer electronics industry is slightly more tilted toward direct response, at 58% of digital ad spending this year. But overall spending levels are significantly lower than in the telecom industry: Computing products and consumer electronics advertisers will spend $4.44 billion on digital placements this year, an increase of 15.4% over 2014 spending levels.

US Computing Products & Consumer Electronics Industry Digital Ad Spending, 2013-2019 (billions, % of total digital ad spending and % change)

That’s a comparatively small 7.6% of all digital ad spending in the US this year, a share the industry will maintain throughout eMarketer’s forecast period. Growth in ad spending during this period will be right in line with the average for all industries.

Although telecoms and computing products/consumer electronics remain two distinct portions of the economy, the two industries have always been symbiotic and are becoming even more so, given that telecoms provide the infrastructure and services that computing and other electronic devices need to communicate. The internet of things (IoT) and the rise of connected devices in general will only make this relationship closer. Many companies already treat the industries similarly, combining both for the purposes of advertising and other sales and marketing efforts.

eMarketer expects that both telecom and computing/electronics will see ad spending growth concentrated in mobile, video and native—particularly in-stream and in-feed advertising delivered on mobile devices.

eMarketer’s forecasts and estimates are based on an analysis of quantitative and qualitative data from research firms, government agencies, media firms and public companies, plus interviews with top executives at publishers, ad buyers and agencies. Data is weighted based on methodology and soundness. Each eMarketer forecast fits within the larger matrix of all its forecasts, with the same assumptions and general framework used to project figures in a wide variety of areas. Regular re-evaluation of available data means the forecasts reflect the latest business developments, technology trends and economic changes.

Download the executive summary of the report here.

eMarketer corporate subscription clients can view the full report here.

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