Table of Contents
Executive Summary
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- Overview
- Key takeaways
- The issues
- Consumers routinely come across irrelevant ads
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- Figure 1: Digital ad results, May 2019
- Four in 10 use two or more methods to avoid digital ads
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- Figure 2: Number of ad-avoidance methods used, May 2019
- Privacy and personal information are sensitive areas for consumers
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- Figure 3: Digital ad behaviors, May 2019
- The opportunities
- Marketers need to go where the people are, and that’s digital
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- Figure 4: Total US digital advertising revenue, by segment, 2014-24
- Brands looking for a younger audience must have a mobile presence on social media
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- Figure 5: Daily smartphone activities, October 2017-November 2018
- Marketers can be more aggressive in using data to pursue Generation Z
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- Figure 6: Attitudes toward digital advertising – Personal information, by generation, May 2019
- What it means
The Market – What You Need to Know
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- Digital advertising spending still growing, just not as quickly
- Digital video advertising forecast for rapid growth
- Regulations could shake up the digital advertising industry
- Digital assistants could become the next search engine
Market Size and Forecast
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- Digital advertising spend could double by 2024
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- Figure 7: Total US digital advertising spend and fan chart forecast, at current prices, 2014-24
- Figure 8: Total US digital advertising spend, at current prices, 2014-24
Market Breakdown
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- Growth in volume, breakouts remain the same
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- Figure 9: Breakout of US digital ad spend, by segment, at current prices, 2018-19
- Paid search the largest, yet slowest, growing segment
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- Figure 10: Total US digital paid search advertising spend and fan chart forecast, at current prices, 2014-24
- Figure 11: Total US retail sales and forecast of paid search advertising spend, at current prices, 2014-24
- Digital video shows highest potential growth
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- Figure 12: Total US digital video advertising spend and fan chart forecast, at current prices, 2014-24
- Figure 13: Total US digital video advertising spend, at current prices, 2014-24
- Banner ad spend will grow alongside social media
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- Figure 14: Total US digital banner advertising spend and fan chart forecast, at current prices, 2014-24
- Figure 15: Total US digital banner advertising spend, at current prices, 2014-24
Market Factors
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- 5G should increase connectivity and bandwidth
- Digital assistants could be the next search engine
- Digital TV increase will lead to spike in digital video ads
- New regulations could make it harder for marketers to reach consumers
- Levies on large tech companies could impact digital ad market
Key Players – What You Need to Know
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- Facebook revenues continue growth
- Shopify brings ecommerce solutions to small businesses
- Snapchat’s user growth stalls
- 5G could enable new wave of geolocation-based advertising
What’s Working?
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- The Trade Desk revenues show consistent growth
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- Figure 16: The Trade Desk annual revenue, 2014-18
- Facebook hits more than $55 billion on revenue
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- Figure 17: Daily Instagram users, by Generation Z and Millennials, January 2017-May 2019
- Figure 18: Facebook yearly revenue, 2014-18
- Shopify brings digital solutions for small businesses
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- Figure 19: SmallBiz Ahead communication email, July 2019
- Hulu a growing marketplace for digital video advertisers
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- Figure 20: Hulu video advertising stats, January 2019-July 2019
What’s Struggling?
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- Snap Inc. shows revenue growth, but uncertain profitability
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- Figure 21: Daily snapchat users, by Generation Z and Millennials, January 2017-May 2019
- Figure 22: Daily Instagram users, by Generation Z and Millennials, January 2017-May 2019
What’s Next?
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- Digital voice assistants could take over search engines
- More geo-location based ads will arrive in a 5G environment
- Connected devices could unlock new ways to interact with consumers
- Augmented Reality Ads
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- Figure 23: Facebook CES exhibit, January 2019
The Consumer – What You Need to Know
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- Marketers need to be on mobile
- Irrelevant ads a problem for digital advertising
- One in five consumers use three or more methods to avoid ads online
- Consumers know they are tracked and privacy is a concern
- Companies aren’t trusted custodians of personal data
Digital Devices Used
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- Consumers use a wide variety of digital devices
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- Figure 24: Devices used in the past seven days, October 2017-November 2018
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- Figure 25: Mobile phone ownership and type of phone used, 2011-18
- Digital video platforms will be key to reaching younger consumers
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- Figure 26: Devices used in last seven days – TV and streaming media devices, by gender and age, October 2017 – November 2018
- Opportunities for cross-platform advertising due to second screening
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- Figure 27: Activities while watching TV, October 2017-November 2018
- Gaming platforms effective at reaching men 18-34
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- Figure 28: Video game console use in last seven days, by gender and age, October 2017-November 2018
- Web browsing and social networking top daily activities on smartphones
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- Figure 29: Daily smartphone activities, October 2017-November 2018
- Figure 30: Time spent on smartphones, by activity, October 2017-November 2018
Digital Ads Viewed
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- Email and social media news feed ads get the most recognition
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- Figure 31: Digital ads viewed in the past seven days, May 2019
- Digital strategy necessary to reach younger consumers
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- Figure 32: Digital ads viewed in the past seven days, by age, part 1, May 2019
- Email and display ads better at reaching older consumers
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- Figure 33: Digital ads viewed in the past seven days, by age, part 2, May 2019
- Social, audio and video ads should prioritize mobile
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- Figure 34: Devices used to view digital ads, May 2019
Digital Ad Results
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- Nearly half of consumers served irrelevant ads
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- Figure 35: Digital ad results, May 2019
- Display ads less likely to target the right audience
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- Figure 36: Digital ad results, by digital ads viewed, May 2019
- Digital ads most effective among younger men
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- Figure 37: Digital ad success, by gender and age, May 2019
- Audio streamers more engaged with digital advertising
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- Figure 38: Digital ad success, by digital ads viewed in the past seven days, May 2019
Ad-avoidance Methods
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- Marketers play cat and mouse with consumers online
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- Figure 39: Ad-avoidance methods, May 2019
- Age and gender have minimal impact on ad-blocking usage
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- Figure 40: Ad-avoidance methods – Ad-blocking software, by gender and age, May 2019
- Millennials most likely to provide fake email information
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- Figure 41: Ad-avoidance methods – Fake email information, May 2019
- Audio streamers more likely to pay for ad-free access
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- Figure 42: Ad-avoidance methods – Pay for ad-free experience, by digital ads viewed in the past seven days, May 2019
- Figure 43: Apple music display ads, July 2019
- Nearly a third of consumers don’t take measures to avoid online ads
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- Figure 44: Number of ad-avoidance methods used, May 2019
- Figure 45: Ad-avoidance methods, by number of ad-avoidance methods used, May 2019
- Voracious social media users look to avoid ads
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- Figure 46: Social media sites visited daily, by number of ad-avoidance methods used, May 2019
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- Figure 47: Attitudes toward digital advertising – Social media and local notifications, by number of ad-avoidance methods used, May 2019
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- Figure 48: Digital ad results, by number of ad-avoidance methods used, May 2019
- Privacy concerns a factor behind ad-avoidance behaviors
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- Figure 49: Attitudes toward digital advertising – Personal information, by number of ad-avoidance methods used, May 2019
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- Figure 50: Online ad behaviors, by number of ad-avoidance methods used, May 2019
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- Figure 51: Privacy on iPhone – Private Side, commercial, March 2019
- Figure 52: Privacy on iPhone – The Answer, March 2019
Digital Ad Behaviors
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- Consumers are aware advertisers are tracking them
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- Figure 53: Digital ad behaviors, May 2019
- Video streaming services need variety in ads
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- Figure 54: Digital ad behaviors – Repeating video ads, by generation, May 2019
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- Figure 55: Digital ad behaviors – Repeated digital video ads, May 2019
- Inroads can be made with younger Millennials via social networks
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- Figure 56: Digital ad behaviors, by generation, May 2019
Consumer Attitudes toward Digital Privacy
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- Consumers as a whole concerned with the information marketers have
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- Figure 57: Consumer attitudes toward digital advertising – Personal information concern, by age, May 2019
- Younger women more comfortable when it comes to online personal information
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- Figure 58: Attitudes toward privacy, part 1, by gender and age, October 2017-November 2018
- Privacy assurance and tangible benefits will get consumers to provide personal information
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- Figure 59: Attitudes toward privacy, part 2, by gender and age, October 2017-November 2018
- Generation Z men are most ambivalent when it comes to personal info
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- Figure 60: Attitudes toward privacy, part 3, by gender and age, October 2017-November 2018
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- Figure 61: Attitudes toward privacy, part 4, by gender and age, October 2017-November 2018
Consumer Attitudes toward Digital Advertising
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- Consumers skeptical of paid online advertising
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- Figure 62: Attitudes toward digital advertising, May 2019
- Ads in general are a nuisance to online consumers
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- Figure 63: Attitudes toward digital advertising, May 2019
- Millennials most comfortable with video ads in the middle of content
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- Figure 64: Attitudes toward digital advertising – Video ad placement, by generation, May 2019
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- Figure 65: Attitudes toward digital advertising – Bothersome, by generations, May 2019
Consumer Segmentation
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- Three consumer segments based on attitudes toward digital advertising
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- Figure 66: Consumer segmentation – Attitudes toward digital advertising, May 2019
- Ad Neutralists
- Characteristics
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- Figure 67: Profile of Ad Neutralists, May 2019
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- Figure 68: Attitudes toward digital advertising – Personal information concern, by consumer segmentation, May 2019
- Opportunities
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- Figure 69: Breakdown of number of ad-avoidance methods used, by consumer segmentation, May 2019
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- Figure 70: Ad-avoidance methods, by consumer segmentation, May 2019
- Ad Rejectors
- Characteristics
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- Figure 71: Profile of Ad Rejectors, May 2019
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- Figure 72: Devices used to view digital ads – Smartphone, by consumer segmentation, May 2019
- Opportunities
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- Figure 73: Digital ad behaviors – Ad clicking, by consumer segmentation, May 2019
- Ad Realists
- Characteristics
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- Figure 74: Profile of Ad Realists, May 2019
- Opportunities
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- Figure 75: Attitudes toward digital advertising, by consumer segmentation, May 2019
Appendix – Data Sources and Abbreviations
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- Data sources
- Sales data
- Fan chart forecast
- Consumer survey data
- Consumer behavioral data
- Direct marketing creative
- Abbreviations and terms
- Abbreviations
- Terms
Appendix – The Market
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- Figure 76: Total US digital advertising spend – “Other” and fan chart forecast, at current prices, 2014-24
- Figure 77: Total US digital advertising spend – “Other,” at current prices, 2014-24
- Figure 78: Total US retail sales and forecast of 0, at inflation-adjusted prices, 2014-24
- Figure 79: Total US retail sales and forecast of banner , at inflation-adjusted prices, 2014-24
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- Figure 80: Total US retail sales and forecast of video , at inflation-adjusted prices, 2014-24
- Figure 81: Total US retail sales and forecast of search, at inflation-adjusted prices, 2014-24
- Figure 82: Total US retail sales and forecast of other, at inflation-adjusted prices, 2014-24
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