2020
9
US Digital Advertising Market Report 2020
2020-10-07T04:02:21+01:00
OX989476
2195
125679
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Report
en_GB
“As a result of the COVID-19 outbreak people are spending more time online and making more purchases online, which increases opportunities for digital advertising, particularly direct response adverts. Major social…

US Digital Advertising Market Report 2020

£ 2,195 (Excl.Tax)

Description

Providing the most comprehensive and up-to-date information and analysis of the Digital Advertising – US market including the behaviours, preferences and habits of the consumer.

Digital advertising is a $125 billion industry in the US, and the engine that funds much of the internet. As consumers have expanded their digital activities, marketers have also expanded the ways they connect with consumers while they are online. From desktop-based web browser ads to social media news feed videos, brands have more avenues to reach consumers digitally than ever before. Marketers have to advertise where the audience is, and COVID-19 has only accelerated consumer reliance on digital devices and solutions, so despite the economic impact of COVID-19, digital advertising is expected to grow in 2020, and is forecasted for even more aggressive growth through 2025.

Quickly Understand

  • The impact of COVID-19 on consumer behavior and the digital advertising market?
  • The key players and business strategies in today’s digital advertising space?
  • Why digital consumption is increasing among consumers?
  • Attitudes toward digital advertising and digital ad behaviors?
  • Learn why entertainment matters and Ad avoiders being a challenge?
  • Could partnerships with Streamers be the way of the future?

Covered in this report

Companies include Google, Amazon, Facebook, Twitter, Shopify, Wix, Squarespace, Spotify, Comcasts FreeWheel, The Trade Desk, TikTok etc.

Digital advertising includes internet delivered ads in paid search advertising, digital video ads, banner advertising and other forms of digital advertising that includes but is not limited to email, audio streaming, classified ads, lead generation services and ad-supported apps.

Expert analysis from a specialist in the field

Written by Rebecca McGrath, a leading analyst in the Media sector, her extensive knowledge delivers in-depth commentary and analysis to highlight current trends and add expert context to the numbers.

As a result of the COVID-19 outbreak people are spending more time online and making more purchases online, which increases opportunities for digital advertising, particularly direct response adverts. Major social networks have introduced more direct response and shoppable adverts since the start of the pandemic. One of the long-term results will be increasingly frictionless online purchasing experiences via online adverts, especially if more platforms introduce their own in-app payment options
Rebecca McGrath
Senior Media Analyst

Table of Contents

  1. Overview

    • What you need to know
    • Key issues covered in this Report
    • COVID-19: Market context
    • Economic and other assumptions
    • Products covered in this Report
  2. Executive Summary

    • Impact of COVID-19 on digital advertising
      • Figure 1: Short, medium and long-term impact of COVID-19 on digital advertising, prepared 6 September 2020
    • The market
    • Digital adspend set to fall by 10% in 2020
      • Figure 2: Forecast of digital advertising expenditure in the UK, 2015-25
    • Google’s ad revenue is harder hit than Facebook’s
    • Amazon could get larger slice of the advertising pie as more people shop online
    • Companies and brands
    • Social media platforms further boost ecommerce role through direct response ads
    • Social media platforms reach out to appeal to advertisers
    • The consumer
    • Brands can reference the pandemic but need to be flexible
      • Figure 3: Attitudes towards advertising throughout the COVID-19 outbreak, 28 May-8 June 2020
      • Figure 4: Attitudes towards online adverts mentioning the COVID-19 outbreak, 28 May-8 June 2020
      • Figure 5: Whether seen an online advert being disrespectful about the COVID-19 outbreak, 28 May-8 June 2020
    • COVID-19 should boost prominence of social media and video advertising
      • Figure 6: Digital advertising formats noticed in the last 3 months, 28 May-8 June 2020
    • Significantly more people are seeing social media feed adverts on smartphones
      • Figure 7: Digital mobile advertising formats noticed in the last 3 months, April 2019 and 28 May-8 June 2020
    • More consumers seek information and control over who has their data
      • Figure 8: Digital advertising behaviour, 28 May-8 June 2020
      • Figure 9: Attitudes towards digital advertising, 28 May-8 June 2020
    • Interrupting content unexpectedly is considered by far the most annoying aspect of digital advertising
      • Figure 10: Attributes people find most annoying about digital advertising, 28 May-8 June 2020
    • Need for celebrity advertising called into question
      • Figure 11: Digital advertising preferences, 28 May-8 June 2020
  3. COVID-19 and Digital Advertising

    • Impact on the Market
    • Digital advertising revenue to drop in 2020
    • Regulators and platforms look to crack down on exploitative and false COVID-19 advertising
    • Producing adverts during a pandemic
    • Impact on companies and brands
    • Google’s ad revenue harder hit than Facebook’s
    • Amazon could get larger slice of the advertising pie as more people shop online
    • Impact on consumers
    • The COVID-19 outbreak has increased online activity, presenting opportunities for digital advertising
    • Most consumers are comfortable with advertising throughout the outbreak but brands need to be flexible
  4. Issues and Insights

    • Most consumers are comfortable with advertising throughout the outbreak but brands need to be flexible
    • Direct response advertising to thrive as people shop more online
    • Brands need to utilise more sophisticated AI to ensure adverts are next to appropriate content
  5. The Market – Key Takeaways

    • Digital advertising revenue to drop in 2020 but recover quickly
    • Google’s ad revenue is harder hit than Facebook’s as Amazon presents a growing threat
    • The COVID-19 outbreak has increased online activity, presenting opportunities for online advertising
  6. Market Size and Forecast

    • Digital advertising revenue to drop in 2020
      • Figure 12: Short, medium and long-term impact of COVID-19 on digital advertising, prepared 6 September 2020
    • Digital adspend set to fall by 10% in 2020
      • Figure 13: Forecast of digital advertising expenditure in the UK, 2015-25
      • Figure 14: Forecast of digital advertising expenditure in the UK, 2015-25
    • Market drivers and assumptions
      • Figure 15: Key drivers affecting Mintel’s market forecast, 2020-24 (prepared on 3 September 2020)
    • Learnings from the last recession
    • Forecast methodology
  7. Market Segmentation

    • Paid-for search accounts for 51% of digital adspend
      • Figure 16: Digital adspend market breakdown, 2010-19
    • Mobile continues to make up greater proportion of adspend
      • Figure 17: Mobile adspend as a proportion of total digital expenditure, 2010-19
    • Google’s ad revenue is harder hit than Facebook’s
    • Amazon could get larger slice of the advertising pie as companies prioritise ecommerce
    • Impact of COVID-19 on social media advertising
  8. Market Drivers

    • COVID-19 outbreak boosts ecommerce
      • Figure 18: Online share of all retail sales (ex-fuel), 2014-24
    • Regulators and platforms look to crack down on exploitative and false COVID-19 advertising
    • Producing adverts during a pandemic
    • Nearly six in 10 use social media and messaging apps daily
      • Figure 19: Frequency of app usage, July 2019
    • TikTok goes mainstream, offering advertisers a new creative way to connect with Gen Z
      • Figure 20: Use of social media platforms, 19-30 March 2020
    • Advertisers boycott Facebook
    • Online political advertising becomes more of a hot button issue
    • The UK to continue GDPR following Brexit transition
    • CMA proposes ways of reducing dominance of Google and Facebook
    • ASA and CMA crack down on social media influencer labelling
    • ASA sets up alert system in attempt to tackle scam ads
    • Bans placed on junk food advertising, while MPs propose gambling ban
    • Facebook expresses concern about privacy changes in Apple’s new operating system
  9. Companies and Brands – Key Takeaways

    • Social media platforms further boost ecommerce role through direct response ads
    • Social media platforms reach out to appeal to advertisers
  10. Launch Activity and Innovation

    • Social media platforms further boost ecommerce role through direct response ads
    • Platforms experiment more with live shopping
    • Facebook introduces AR try-on features
    • Google alters search results in wake of COVID-19 outbreak and Amazon threat
    • Snapchat launches campaign to appeal to advertisers
    • TikTok becomes more advertiser friendly with the launch of its TikTok for Business platform
    • Pandora creates conversational voice ads
  11. The Consumer – Key Takeaways

    • Context is key to how an advert is received
    • Consumers are seeking more control over the adverts being shown to them
    • People want adverts to be funny rather than sentimental
  12. Impact of COVID-19 on Digital Advertising

    • Even during lockdown most people felt it was appropriate to advertise
    • Brands can run adverts alongside coronavirus content
      • Figure 21: Attitudes towards advertising throughout the COVID-19 outbreak, 28 May-8 June 2020
    • Brands can reference the pandemic…
    • …but need to be flexible
      • Figure 22: Attitudes towards online adverts mentioning the COVID-19 outbreak, 28 May-8 June 2020
      • Figure 23: Whether seen an online advert being disrespectful about the COVID-19 outbreak, 28 May-8 June 2020
  13. Advertising Exposure

    • Awareness of digital advertising is growing
    • COVID-19 should boost prominence of social media and video advertising
      • Figure 24: Digital advertising formats noticed in the last 3 months, 28 May-8 June 2020
      • Figure 25: Noticed advertising format in the last 3 months, April 2019 and 28 May-8 June 2020
    • Significantly more people are seeing social media feed adverts on smartphones
      • Figure 26: Digital mobile advertising formats noticed in the last 3 months, April 2019 and 28 May-8 June 2020
  14. Digital Advertising Behaviour

    • Half of people clear their browsing history
    • More consumers seek information and control over who has their data
      • Figure 27: Digital advertising behaviour, 28 May-8 June 2020
      • Figure 28: Digital advertising behaviour, by age, 28 May-8 June 2020
    • Social distancing measures could encourage people to interact with brands via chatbots
  15. Attitudes towards Digital Advertising

    • Attitudes towards placement of ads highlight need for more advanced algorithms
      • Figure 29: Attitudes towards digital advertising, 28 May-8 June 2020
    • Many do find it useful for adverts to be targeted via personal information
    • People’s purchasing behaviour can be impacted by their perception of the platform
  16. Digital Advertising Frustrations

    • Interrupting content unexpectedly is considered by far the most annoying aspect of digital advertising
    • Advertising must be transparent to avoid negative associations
      • Figure 30: Attributes people find most annoying about digital advertising, 28 May-8 June 2020
    • Young women are most annoyed by stereotypes
    • Introduction of 5G should help prevent annoyance about slow-loading ads
  17. Digital Advertising Preferences

    • Need for celebrity advertising called into question
      • Figure 31: Digital advertising preferences, 28 May-8 June 2020
    • People want adverts to be funny rather than sentimental
    • TikTok challenges provide new way of getting consumers involved
    • Familiarity with a brand boosts enjoyment
  18. Appendix – Data Sources, Abbreviations and Supporting Information

    • Abbreviations
    • Consumer research methodology

About the report

This market report provides in-depth analysis and insight supported by a range of data. At the same time, introductory and top-level content is provided to give you an overview of the issues covered.

Market

Mintel provides a range of market information, frequently through the category level, including market size and forecasting, complete with market drivers that illustrate the forces that shape a category or market.

Consumer

Mintel’s proprietary consumer research provides our analysts with the attitudinal and behavioral data used to provide valuable insight to topical issues.

Brand/Company

Mintel provides overviews of the top brands and manufacturers, and uses consumer research to explore attitudes and reactions to brands, as well as insight into what will resonate with consumers.

Data

Market reports provide appendices of data to support the research and insight produced. Our databooks* are easily manipulated and downloadable to support your research needs and covers factors from consumer attitudes to market forecasts.

*databooks not available with UK B2B Industry reports.

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