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Digital Advertising - US - August 2017

"Propelled by growth in mobile and social, digital ad sales in total increased by more than 20% annually from 2014-17, but rapid growth in mobile and social is stunting other opportunities, particularly considering that desktop remains the primary platform for browsing and streaming video among large sections of the adult population. As delineated in other research findings, advertisers may be paying too much heed to concerns regarding privacy that are promoted more by anecdote than statistical analysis. Other potential pitfalls in navigating the rapidly changing digital environment include efforts to stimulate immediate purchasing when digital is evolving toward brand awareness, and assumptions regarding the value of video display ads."

- Billy Hulkower, Senior Analyst, Technology and Media

This report looks at the following areas:

  • Purchases rare
  • Older ages just say no
  • Third of viewers ignore mobile, video

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Table of contents

  1. Overview

    • What you need to know
      • Definition
      • Executive Summary

        • The issues
          • Purchases rare
            • Figure 1: Purchases made in response to digital ad, by type of ad, June 2017
          • Older ages just say no
            • Figure 2: Lack of interest in any ad format, by age, June 2017
          • Third of viewers ignore mobile, video
            • Figure 3: Negative attitudes to sponsored content in feeds, June 2017
            • Figure 4: Negative attitudes to video display ads, June 2017
            • Figure 5: Negative attitudes to mobile ads, June 2017
          • The opportunities
            • High levels of exposure offer rapid reach to mass audiences
              • Figure 6: Weekly exposure to digital ads, by type of ad, June 2017
              • Figure 7: Daily exposure to digital ads, by type of ad, June 2017
            • Product introductions and reminders both effective
              • Figure 8: Positive responses to digital ads, June 2017
            • Digital gets dads going
              • Figure 9: Lack of interest in digital ads, by parental status, June 2017
            • What it means
            • The Market – What You Need to Know

              • Slower growth ahead
                • Competing ad formats to slow in 2020s
                  • Multiple firsts in market share
                    • Mobile just getting rolling
                    • Market Size

                      • Long-term, 20%+ growth not sustainable
                        • Figure 10: Total US sales of banner and video ads, at current prices, 2015-17
                    • Market Breakdown

                      • Growth limited outside of social
                        • Figure 11: Digital ads sales, social vs all other, at current prices, 2014-16
                      • Desktop declines for first time
                        • Figure 12: Digital ads sales, desktop vs mobile, at current prices, 2014-16
                      • Desktop favored for video, longer-form text
                        • Figure 13: Online activities more common to desktop than mobile, January 2017
                    • Market Perspective

                      • Competition from other ad formats
                        • TV remains dominant
                          • Figure 14: Date of most recent purchase because of a television commercial, November 2016
                        • $80 billion television budgets
                          • Figure 15: US sales and forecast of television advertising, at current prices, 2011-21
                        • Search drains potential display, app budgets
                          • Figure 16: US sales of search ads segments, desktop vs mobile, at current prices, 2014-16
                        • Half uninterested in any digital ad format
                          • Figure 17: Lack of interest in any ad format, by gender and age, June 2017
                      • Market Factors

                        • Mobile web access
                          • Faster service
                            • Unlimited data
                              • Larger screens
                                • Figure 18: Devices used to access the internet, January 2014-June 2017
                              • Social media rising, but has physical limits
                                • Figure 19: Weekly use of social media services, February-July 2017
                            • Key Platforms – What You Need to Know

                              • Desktop ads more likely to succeed
                                • Social best opportunity in mobile
                                  • Image-based social on the rise
                                  • What’s Working?

                                    • Desktop more inspiring
                                      • Figure 20: Stimulation of interest in products advertised by desktop ads, June 2017
                                  • What’s Struggling?

                                    • Interest in mobile more limited than desktop
                                      • Figure 21: Stimulation of interest in products advertised by mobile ads, June 2017
                                  • What’s Next?

                                    • Image-based mobile social
                                      • Figure 22: Stimulation of interest in products advertised by image-oriented social media ads, by age, June 2017
                                    • Promoted Pins pass $500 million in sales
                                      • Snapchat targets $500+ million in ad revenue for 2017
                                      • The Consumer – What You Need to Know

                                        • Limitations in audience size over
                                          • More selective filters needed for attracting purchases
                                            • Mobile undesirable but effective
                                              • Men attracted to humor in video
                                                • Young men top influencers
                                                  • Much ado about privacy
                                                  • Exposure

                                                    • Ads meet eyeballs: two thirds see digital ads daily
                                                      • Figure 23: Daily and weekly exposure to digital ads, by type of ad, June 2017
                                                    • Age top driver for exposure
                                                      • Figure 24: Daily exposure to digital ads, by type of ad and age, June 2017
                                                    • Targeting youths should envelop urbanites
                                                      • Figure 25: Daily exposure to digital ads, by type of ad and area of residence, June 2017
                                                    • Hispanic Millennials are mobile aficionados
                                                      • Figure 26: Daily exposure to digital ads, by type of ad and by race/Hispanic origin/generation, June 2017
                                                    • Dads exposed
                                                      • Figure 27: Daily exposure to digital ads, by type of ad and parental status, June 2017
                                                  • Purchasing

                                                    • Purchasers a rare breed
                                                      • Figure 28: Purchases made in response to digital ad, by type of ad, June 2017
                                                    • Usual suspects converting
                                                      • Dads buy in
                                                        • Figure 29: Purchases made in response to digital ad, by type of ad and parental status, June 2017
                                                      • Hispanic Millennials attractive
                                                        • Figure 30: Purchases made in response to digital ad, by type of ad, by Hispanic origin and generation, June 2017
                                                      • Men like video
                                                        • Figure 31: Purchases made in response to digital ad, by type of ad and gender, June 2017
                                                      • 18-24s less desirable than 25-44s
                                                        • Figure 32: Purchases made in response to digital ad, by type of ad and age, June 2017
                                                    • Attitudes to Mobile Ads

                                                      • Positive responders similar in share to avoiders
                                                        • Figure 33: Negative attitudes to mobile ads, June 2017
                                                        • Figure 34: Positive attitudes to mobile ads, June 2017
                                                      • Targeting the largest youthful audience
                                                        • Figure 35: Reminder to purchase and interest in new products seen in mobile ads, by age, June 2017
                                                        • Figure 36: Positive attitudes to mobile ads, CHAID output, June 2017
                                                    • Attitudes to Video Ads

                                                      • Negative attitudes more common
                                                        • Figure 37: Negative attitudes to video display ads, June 2017
                                                      • Humor disarming
                                                        • Figure 38: Positive response to video display ads, June 2017
                                                      • Dads prepared to laugh
                                                        • Figure 39: Positive response to video display ads, by gender and parental status, June 2017
                                                      • Two thirds of young dads show positive response
                                                        • Figure 40: Positive response to video banner ads, CHAID output, June 2017
                                                    • Attitudes to Sponsored Content (Native Ads)

                                                      • Cup half full
                                                        • Figure 41: Negative attitudes to ads in social media and news feeds, June 2017
                                                      • Nearly a third click, but only a sixth share
                                                        • Figure 42: Positive attitudes to ads in social media and news feeds, June 2017
                                                      • Young men caring via sharing
                                                        • Figure 43: Sharing of sponsored content in feeds, by gender and age, June 2017
                                                    • Attitudes to the Use of Internet History (Retargeting)

                                                      • Vast majority see history as fair game
                                                        • Figure 44: Negative attitudes to ads using personal history, June 2017
                                                      • Rewards outweigh risks
                                                        • Figure 45: Positive attitudes to ads using personal history, June 2017
                                                      • Greatest reward with high-income urban parents
                                                        • Figure 46: Positive attitudes to ads using personal history, CHAID tree output, June 2017
                                                    • Appendix – Data Sources and Abbreviations

                                                      • Data sources
                                                        • Sales data
                                                          • Consumer survey data
                                                            • Methodology
                                                              • Abbreviations and terms
                                                                • Abbreviations
                                                                  • Terms
                                                                  • Appendix – The Consumer

                                                                    • Detailed exposure to ads
                                                                      • Figure 47: Daily and weekly exposure to digital ads (detail), by type of ad, June 2017
                                                                      • Figure 48: Daily exposure to digital ads (detail), by type of ad and age, June 2017
                                                                      • Figure 49: Daily exposure to digital ads (detail), by type of ad and area of residence, June 2017
                                                                      • Figure 50: Daily exposure to digital ads (detail), by type of ad and by race/Hispanic origin/generation, June 2017
                                                                      • Figure 51: Daily exposure to digital ads (detail), by type of ad and parental status, June 2017
                                                                    • Exposure to television ads
                                                                      • Figure 52: Number of television and digital video commercials viewed daily, November 2016
                                                                    • Response to social ads
                                                                      • Figure 53: Positive attitudes to ads in social media and news feeds, CHAID output, June 2017

                                                                  Companies Covered

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                                                                  Digital Advertising - US - August 2017

                                                                  US $3,995.00 (Excl.Tax)