The US Telecom and Computing Products and Consumer Electronics Industries H2 2016 Update: Digital Ad Spending Forecast and Trends - eMarketer
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The US Telecom and Computing Products and Consumer Electronics Industries H2 2016 Update: Digital Ad Spending Forecast and Trends

eMarketer Report

By: eMarketer

Published: December 21, 2016

Jump to: Executive Summary | Table of Contents | List of Charts

Executive Summary

US telecom, computing products and consumer electronics advertisers will spend $13.37 billion on digital advertising in 2016, a 19.9% gain from 2015. Together, these sectors will account for 18.5% of this year’s total US digital ad spending.

  • AT&T, as part of an attempt to boost viewership on its DirecTV service, unveiled a subscription online streaming service, DirecTV Now, in November. Competing with Netflix, Hulu, Amazon and other video streaming services, AT&T will market its services to cord-cutters looking for lower-price alternatives to cable TV setups.
  • Google spent heavily on traditional TV ads for the introduction of its two Pixel smartphones in early October, but digital also played a role in the huge marketing effort, including a brand takeover of Snapchat’s Discover feature. Verizon, which is selling the device, also committed a significant amount of marketing dollars to TV, digital and social media, according to Jeff Dietel, Verizon’s vice president of device marketing, who spoke to Reuters.
  • Sony, Nintendo and Microsoft released new gaming consoles between August and November. Given the head-to-head competition among the gaming companies, the marketing for all of these was expected to be fierce. Looking past the 2016 holiday season, Nintendo is already beginning to promote its new portable gaming console, Switch, ahead of a March 2017 release.
  • Beats by Dre pitched its wireless headphones to all owners of the new iPhone 7, which lacks a headphone jack. The campaign’s marquee effort was a 90-second video featuring familiar faces from around the celebrity/influencer world: Pharrell Williams, Rebel Wilson, Michael Phelps and Steve Buscemi. Elements of the ad were also featured in digital video and social media.

"The digital ad spending predictions for the telecom, computing products and consumer electronics sectors in this report are upward revisions from eMarketer’s March 2016 forecast. Previously, spending by these industries was projected to total $12.76 billion for 2016. Increases in spending on digital video and social media adverting, with a focus on mobile, are factors in the forecast update. Spending will continue to increase through 2020, when brands in these sectors will spend $20.51 billion on digital advertising."

Table of Contents

5 charts are included in the full report:

The US Telecom and Computing Products and Consumer Electronics Industries H2 2016 Update

US Telecom, Computing Products & Consumer Electronics Industry Digital Ad Spending, 2015-2020 (billions, % of total digital ad spending and % change)

Top 25 Advertisers, Ranked by US Total Media Ad Spending, Q2 2016 (millions)

US Digital Ad Spending Growth, by Industry, 2015-2020 (% change)

US Digital Ad Spending, by Industry, 2015-2020 (billions and CAGR)

US Computing Products & Consumer Electronics Industry Digital Ad Spending, by Format, 2016 (billions and % of total)