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Why Social, Search and Video Ads Now Make Up 51% of Advertising in America

David Bosley

Digital ad revenue has been on the rise for many years, but you may be surprised to learn that it now makes up 51% of all advertising dollars to the projected tune of more than $106 billion. This all-time high in 2018 is expected to eclipse traditional advertising channels by the end of the year, according to a recent study by Magna Advertising. Even more fascinating is that mobile advertising spending makes up nearly 2/3 of that spend while experiencing year-over-year growth rates of more than 30%. Any idea why organizations are moving further into the digital arena than ever before?

Growing Spend: Increasing Revenues

There’s a reason that businesses are pouring money into the digital advertising frontier. It’s producing results that are measurable, transparent and significant. There are widely-published results from Google showing that advertisers are seeing $2 in revenue for every $1 spent on AdWords campaigns. The power of that platform and the benefits of advertising on Facebook and other social media platforms is difficult to deny. Keep in mind that this is an average that includes managed Google AdWords accounts.

Google Adwords Results Continue to Improve

The average click-through rates for Google advertising is another data point that marketers need to know. Based on their industry benchmarks, the search network is netting a whopping average 3.17% CTR. See the full infographic from Marketing Profs, which includes Adwords campaigns run by over 11,000 advertisers in 2017. While real estate has the highest CTR at slightly over 7.5%, there are noticeable differences between campaigns that used machine learning and those that did not.

Omnichannel Continues to Drive Traffic

Even if your brand doesn’t sell online, omnichannel advertising is the key to driving in-store traffic. Businesses continue to see strong incremental store visits of over 75% that can be traced back to social, search and video advertising. With these stats, it’s little wonder that advertisers continue to flock to these reasonably-priced methods of gaining massive new swaths of audience members. Studies show that users spend up to one-third of their online time on social media, making this the ideal platform on which to engage both through advertising and through brand-building activities.

Digital Marketing and Advertising

Social and Video Impact

While Twitter was an early winner with advertisers, the fast-tweeting platform is now much further down the list in terms of where advertisers are spending their money. Much more likely targets for advertising include Facebook, YouTube — and surprisingly, LinkedIn. As the professional networking service continues to build their strategy to bring in job seekers and professionals to their paid service, advertisers of certain brands are seeing impressive results from their spend.

What is not surprising is that B2B advertisers see a higher value for their dollars on LinkedIn than any platform other than Facebook. It remains to be seen whether that trend will continue or if YouTube will overtake either of the other two platforms in the near future.

The results on social, search and video speak for themselves. Are you taking full advantage of all the sales growth avenues available to your business? Let’s compare your marketing mix to the national averages to see if you are you putting more (or less!) of your overall budget into digital channels. Contact PBJ Marketing today at 646-770-3271 or email us at makeithappen@pbjmarketing.com to take advantage of the benefits of digital advertising for your brand. We work with organizations of all sizes to create a cohesive digital presence that entices readers to engage with your brand.