Executive Summary

The US media industry will decrease its digital ad spending by 9.3% to $6.28 billion in 2020, while the US entertainment industry will reduce its digital ad spend by 6.9% to $7.03 billion. The digital ad dollars they will spend should go predominantly toward mobile and display, particularly video (which we classify as a subset of display).

What will be media and entertainment’s respective shares of total US digital ad spending?

Media will make up 4.7% of total US digital ad spending in 2020, while entertainment will account for 5.2%. Gaming and video streaming companies have spent heavily on digital ads throughout the pandemic, but the shutdown of live entertainment and film and TV production will cause digital spending by both verticals to decline overall this year.

When will digital ad spending return to pre-pandemic levels?

It depends on when live entertainment and film and TV production will return to normal. As of now, we expect the media and entertainment industries will increase digital ad spending in 2021 by 14.2% and 20.7%, respectively, which would place spending by both verticals above their 2019 levels.

Which digital ad formats will experience growth?

Video is the only format where both industries will increase investments in 2020. Media will spend 9.3% more on video ads, and entertainment will spend 13.1% more. Spending on display ads (which include both video and nonvideo display ads) will increase in entertainment but decrease on the media side.

How much will each industry spend on mobile?

Both the media and entertainment industries will allocate most of their digital spending to mobile ads (59.1% and 78.5%, respectively). This year, mobile’s share of media digital ad spend will be less than the industry average of 68.0%, while entertainment will devote a greater percentage of its spending to mobile ads than will any other industry we track.

WHAT’S IN THIS REPORT? This report details our annual forecasts of US media and entertainment digital ad spending. It includes a comprehensive overview of total digital ad spending, as well as estimates by device and format.

KEY STAT: The US entertainment industry will spend $7.03 billion on digital advertising this year, down by 6.9% from 2019.