Digital Advertising

“FTI Consulting, Inc. (NYSE:FCN) today announced the findings of its 2018 Advertising Forecast, which projects that digital advertising revenue will capture 49 percent of the U.S. advertising market by 2021, up from 36 percent at the end of 2017.”

“Just last year, our end-state penetration estimate for digital was approximately 60 percent, but we have revised that upward dramatically because of the rapid rise of mobile and video ads. Digital advertising has a 36 percent market share today, and with ads for mobile devices and mobile video growing at a rate of 17 percent to 20 percent per year, we expect continued gains for the foreseeable future.”

“FTI Consulting, Inc. (NYSE:FCN) today announced the findings of its 2018 Advertising Forecast, which projects that digital advertising revenue will capture 49 percent of the U.S. advertising market by 2021, up from 36 percent at the end of 2017.”

“Just last year, our end-state penetration estimate for digital was approximately 60 percent, but we have revised that upward dramatically because of the rapid rise of mobile and video ads. Digital advertising has a 36 percent market share today, and with ads for mobile devices and mobile video growing at a rate of 17 percent to 20 percent per year, we expect continued gains for the foreseeable future.”

“AI is expected to be nearly fully intertwined within the digital advertising economy by 2029, when GroupM expects that 94% of ad revenue will 'be informed' by the technology. That figure includes programmatic, search advertising, and use cases like preplanning and ad optimization... 'After doing this research, there may be no other industry right now where AI is used more pervasively.'”

“As a result, using these techniques, advertisers can improve CPA—the critical metric for most digital campaigns—by an average 32 percent and, in some cases, more than 50 percent. ... Our 2014 study showed that display retargeting from paid search ads delivered, on average, approximately 40 percent lower CPA than content-based and standard-behavioral-targeting techniques.”

“global digital advertising market will grow at a 11% compound annual rate over the next eight years, surpassing $1 trillion in expenditures by the end of 2029 (from ~$440B end-2021, 62% of total ad market).”

“Our bullish estimate projects a 19% compound annual rate of growth to $410 billion in 2026 for US digital advertising (from ~$180B in 2021). Our research suggests a base-case scenario in which US digital advertising spending will grow at a compound annual rate of 9%, from roughly $180 billion in 2021 to $275 billion by 2026.”