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US Advertising: Mobile, TV and Internet market report

Everything you need to make the right decisions

Providing the most comprehensive and up-to-date information and analysis of the Advertising: Mobile, TV and Internet market, and the behaviours, preferences and habits of the consumer.

Mintel has the answers you’re looking for

What are the key challenges facing the industry and how fast are its rates of growth? Who is the consumer and what do they want? Where are the opportunities, where are the risks and what lies ahead?

Definition

For the purpose of this Report, Mintel defines television commercials as inclusive of those seen at the time of broadcast, on DVR, via TVE in online streams, social media, and pay TV VOD libraries. Sponsorship of live events and pre-recorded programming is also included in this Report, including shows specifically created to promote company products, whether these shows are delivered online on traditional television, or both.

Banner ads on websites and apps are discussed as competition for advertiser spending on television campaigns, but are otherwise not included in this Report.

What you need to know

Some 73% of online adults viewed a commercial via linear television in the last week, and these ads continue to have a powerful influence; the majority of viewers for every category surveyed have had some positive responses to commercials, including the desire to learn about new products and gain new insight into ones with which they’re already familiar. Further, while viewers are being lost to streaming services, about 20% of online respondents viewed a commercial via a time-shifted platform in the past week alone via digital video recorder (DVR), Television Everywhere (TVE), or pay television (TV) service video on-demand (VOD) libraries. The share of adults viewing linear programming is likely to continue to decline, but some portion of that audience will be maintained via these viewing methods.

In light of this background, this Report explores response to television commercials in 12 categories, inclusive of ensuing discussions about the commercial, and the pursuit of additional information via online and in-person research. These topics are explored not only via quantitative analysis, but also via a dedicated qualitative panel conducted specifically for this report.

Expert analysis from a specialist in the field

Written by Billy Hulkower, a leading analyst in the Technology sector, his extensive knowledge delivers in-depth commentary and analysis to highlight current trends and add expert context to the numbers.

Many online adults viewed a commercial via linear television in the last week, and these ads continue to have a powerful influence; the majority of viewers for every category surveyed have had some positive responses to commercials, including the desire to learn about new products and gain new insight into ones with which they’re already familiar. Further, while viewers are being lost to streaming services, some online respondents viewed a commercial via a time-shifted platform in the past week alone via digital video recorder (DVR), Television Everywhere (TVE), or pay television (TV) service video on-demand (VOD) libraries. The share of adults viewing linear programming is likely to continue to decline, but some portion of that audience will be maintained via these viewing methods. Billy Hulkower
Senior Technology Analyst

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Table of contents

  1. Overview

    • What you need to know
      • Definition
      • Executive Summary

        • Overview
          • The issues
            • Ad-blocking software, limited web users rule out 30% of audience
              • Figure 1: When internet ads are noticed, May 2018
            • Nearly half remove ads as quickly as possible
              • Figure 2: Removal of internet ads, by gender and age, May 2018
            • Only one in four have ever made a purchase
              • Figure 3: Purchase in response to online ad – CHAID – Tree output, May 2018
            • The opportunities
              • Repetition effective in sought after demographics
                • Figure 4: Increased interest in products as a result of multiple ad viewings, May 2018
              • Dads buy
                • Figure 5: Purchase in response to online ad, by parental status by gender, May 2018
              • Keeping it simple: discounts and retargeting
                • Figure 6: Ad features that increase the likelihood of a click, May 2018
              • What it means
              • The Market – What You Need to Know

                • Stellar growth returns to ground
                  • Majority of buys in mobile
                    • Majority avoiding ads
                      • Growth in WiFi, mobile devices slowing to a crawl
                      • Market Size and Forecast

                        • 2018 final year of 20% growth
                          • Figure 7: US sales and fan chart forecast of banner and digital video ads, at current prices, 2013-23
                          • Figure 8: Total US sales and forecast of banner and digital video ads, at current prices, 2013-23
                      • Market Breakdown

                        • Mobile takes over
                          • Figure 9: US sales of digital ads, desktop vs mobile, 2015 vs 2017
                      • Market Perspective

                        • Ad-blocking software, limited web usage rule out 30% of audience
                          • Figure 10: When internet ads are noticed, May 2018
                        • Nearly half remove ads as quickly as possible
                            • Figure 11: Removal of internet ads, by parental status, May 2018
                          • Recall greater for video
                            • In their own words:
                            • Market Factors

                              • Growth in WiFi access and smartphone ownership slowing
                                • Figure 12: Home WiFi access and smartphone, tablet, and computer ownership, 2013-23
                              • Problems in TV land
                                • Television audience in decline
                                  • Ad skippers push dollars to digital
                                    • Figure 13: Ownership of television recording and streaming devices, May 2018
                                  • Repetition effective in sought-after demographics
                                    • Figure 14: Increased interest in products as a result of multiple ad viewings, May 2018
                                • Key Trends – What You Need to Know

                                  • Two thirds click
                                    • Purchases rare
                                      • Brave new world of shoppable ads
                                      • What’s Working?

                                        • Young men, especially dads, click
                                          • Figure 15: Demographics with favorable clicking behavior, June 2018
                                        • Discounts and retargeting
                                          • Figure 16: Ad features that increase the likelihood of a click, May 2018
                                        • Impressions made even absent a click
                                          • Figure 17: Paying attention to ads without clicking on them, by select demographics, June 2018
                                      • What’s Struggling?

                                        • Only one in four have ever made a purchase
                                          • In their own words:
                                            • Figure 18: Purchase in response to online ad – CHAID – Tree output, May 2018
                                          • Mass engagement missing in most services/activities
                                            • Figure 19: Services/sites on which ads are clicked and purchases made, May 2018
                                        • What’s Next?

                                          • Shoppable ads
                                              • Figure 20: Interest in shoppable ads, May 2018
                                              • Figure 21: Interest in shoppable ads, by social media sites used, May 2018
                                            • Geo-fencing
                                              • Figure 22: Interest in local mobile ads, by parental status, May 2018
                                            • Increased focus on retail and search
                                              • Figure 23: Online shopping and research activities, December 2017
                                          • The Consumer – What You Need to Know

                                            • Youthful skew intact
                                              • Familiarity helps with clicking
                                                • Parents more likely to purchase
                                                  • Leisure and apparel among top categories for clicks and purchases
                                                    • Room for growth in social activity
                                                    • Reach

                                                      • Penetration highest among Millennial parents, iGeneration
                                                          • Figure 24: Reach of digital ads – CHAID – Tree output, May 2018
                                                          • Figure 25: Reach of digital ads, by age, May 2018
                                                          • Figure 26: Reach of digital ads, by parental status, May 2018
                                                          • Figure 27: Reach of digital ads, by household income, May 2018
                                                        • Blacks, Hispanics more likely to notice ads
                                                          • Figure 28: Reach of digital ads, by race and Hispanic origin, May 2018
                                                      • Clicking

                                                        • Lifestage factors at play in increased clicking behavior
                                                          • In their own words:
                                                              • Figure 29: Number of product categories clicked on, by age and household income, May 2018
                                                              • Figure 30: Mean number of product categories clicked upon, renters vs homeowners, May 2018
                                                              • Figure 31: Number of product categories clicked on, by number of children in the home*, May 2018
                                                          • Purchasing

                                                            • Dads top target
                                                              • Figure 32: Purchase in response to online ad, by parental status by gender, May 2018
                                                            • Luxury may not sell
                                                              • Figure 33: Purchase in response to online ad, by household income, May 2018
                                                            • Younger adults buy
                                                              • Figure 34: Purchase in response to online ad, by gender and age, May 2018
                                                          • Purchasing and Clicking by Category

                                                            • Fashion, discounts, entertainment, and restaurants draw most interest
                                                                • Figure 35: Categories clicked upon and purchased, May 2018
                                                                • Figure 36: Categories purchased in response to a television commercial, October 2017
                                                            • The Social Media User

                                                              • Social carries majority of digital advertising
                                                                • Figure 37: US sales of banner and digital video ads, social vs other, 2015 vs 2017
                                                              • Social media users click
                                                                  • Figure 38: Number of product categories clicked on, by use of social media platforms, May 2018,
                                                              • Appendix – Data Sources and Abbreviations

                                                                • Data sources
                                                                  • Sales data
                                                                    • Fan chart forecast
                                                                      • Consumer survey data
                                                                        • Consumer qualitative research
                                                                          • Abbreviations and terms
                                                                            • Abbreviations
                                                                              • Terms
                                                                              • Appendix – CHAID Methodology and Table Outputs

                                                                                • CHAID Methodology
                                                                                  • Figure 39: Ever makes purchases because of internet ad – CHAID – Table output, May 2018
                                                                                  • Figure 40: Ever notices ads – CHAID – Table output, May 2018
                                                                              • Appendix – The Market

                                                                                  • Figure 41: Total US sales and forecast of banner and digital video ads, at inflation-adjusted prices, 2013-23
                                                                              • Appendix – The Consumer

                                                                                  • Figure 42: Purchase in response to online ad, by race and Hispanic origin, May 2018