Executive Summary

Digital ad growth is taking a serious hit this year from the coronavirus and related recession. But display ad spending will still post 5.5% in annual growth, thanks to increased investments in video ads, mobile, connected TV (CTV) and programmatic transactions.

How much has the pandemic slowed down digital display ad spending?

Earlier this year, we expected US digital display ad spending to rise by 19.2% in 2020 and reach almost $85 billion. That’s not going to happen now—but spending will still rise by 5.5%. Spending will rebound next year to growth of almost 23%.

How will display ad spending be transacted?

The vast majority of digital display spending goes through programmatic pipes, and the share is continuing to increase as more CTV inventory becomes available through this infrastructure. Programmatic penetration continues to increase across mobile and CTV, though desktop- and laptop-based ads are becoming more likely to be purchased through traditional means.

What are major areas of growth and change within display?

CTV is a major growth area, which was true before the pandemic and is still the case, with cord-cutting losses to linear TV higher than ever before. Video ads are the main growth driver of display across channels, with growth occurring more than twice as fast as the total. Mobile spending, made up largely of social and native advertising, will also remain relatively strong.

WHAT’S IN THIS REPORT? This report explains our complete forecasts of digital display ad spending, including device and format breakouts, company revenues and programmatic transaction methods.

KEY STAT: Display is driving digital advertising’s growth during this year’s recession. Within display, increased investments will be heavily concentrated on mobile, video and programmatic ads.