Increases in video, social and mobile advertising lift outlays across all sectors
eMarketer updated its benchmark estimates for industry-specific digital advertising outlays, noting that broad trends lifted spending across all sectors in 2016. (eMarketer PRO customers can read the full report here.)
Increases in spending on video and social media and especially mobile advertising pushed estimates higher for all the industries covered in the report.
In the automotive industry, US digital ad spending will total $9.13 billion in 2016, up 22.4% from 2015. In the second half of 2016, automakers across the board are dealing with a slowdown in sales, especially of sedans, prompting more spending to advertise sales incentives.
“Automakers are moving more marketing dollars into display as they ramp up digital video efforts,” said eMarketer analyst Patricia Orsini. “Another sector where TV has traditionally been a large part of ad budgets, automakers are transferring impactful video campaigns to digital. BMW’s 11-minute film, “The Escape,” was a branded content effort that racked up millions of views on YouTube. Toyota and Ford employed virtual reality to tell their brand stories. And Facebook is being employed as an influencer channel.”
Meanwhile, US digital ad spending by the financial services industry will total $8.77 billion in 2016, an increase of 19.5% from 2015. Financial services companies are using digital channels to educate consumers on the value of using digital banking tools and apps as these institutions look to cut costs and improve efficiency.
And when it comes to the travel industry, US digital ad spending will total $5.96 billion in 2016, up 20.5% from 2015. Hotel chains are working to reclaim bookings from online travel agencies (OTAs) with a variety of tools, including stronger loyalty programs and discounts. At the same time, OTAs are expanding ad spending beyond search to social media, including Facebook’s targeted ads.
“Travel brands are also using virtual reality and 360-degree video to give consumers a taste of what they might experience if they book their travel through their hotel, airline or resort,” said Orsini. “At the same time, hotel chains are working to reclaim bookings from online travel agencies (OTAs) via stronger loyalty programs and updated hotel properties aimed at millennial travelers. These efforts have increased spending on social media platforms and search.