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Direct Response Marketing

Retail Keeps Lead in Digital Ad Spend; DR Grows

12 Jun, 2013 By: Doug McPherson

NEW YORK – Advertisers in six major industries may increase digital spending more rapidly than the overall U.S. digital ad market this year, eMarketer says.

Retail, financial services, consumer packaged goods (CPG) and travel are growing their digital ad spending at or above overall market rates are – the result of increased focus on direct response advertising.

eMarketer estimates that, this year, 22.3 percent of all U.S. digital ad spending will come from retailers, a percentage that has held steady over several years. Nearly two-thirds of this retail spending will focus on direct response formats, such as search, mobile messaging, classifieds and directories, or lead generation.

Digital ads from financial services firms in the U.S. will account for 12.4 percent of total digital ad spending this year. Over 60 percent of spending in financial services spending will be in direct response in search, mobile messaging and the like.

The CPG industry has grown its digital spending faster than the retail or financial services industries, though they’re laggards in online spending. Just 8.3 percent of total digital spending this year will come from CPG firms. Unlike retail and direct response marketers, CPG advertisers are focused on branding efforts: 62 percent of digital spending will go toward banner ads, rich media, sponsorships and video, eMarketer estimates.

In travel ad spending, direct response is also heavy.

For the report eMarketer analyzed reported revenues from major ad-selling companies; data from benchmark sources the Interactive Advertising Bureau (IAB) and PricewaterhouseCoopers; estimates from other research firms; consumer internet usage trends; and eMarketer interviews with executives at ad agencies, brands, digital ad publishers and other industry leaders.

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