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EMarketer expects 2017 to be a watershed year for U.S. digital ad spending. The research firm says that in that year, digital will overtake spending on TV ads for the first time. Digital ad leaders Facebook ( FB ), Alphabet ( GOOGL ) subsidiary Google and Yahoo ( YHOO ) are poised to benefit. In 2016, total digital ad spending is expected to reach 35.8% of all U.S. ad spending, trailing TV ad spending’s 36.8% share, eMarketer said. But next year, digital ad spending will rise to 38.4% of total U.S. ad spending, some $77.37 billion, while TV ad spending will comprise 35.8% of total media ad spending, or $72.01 billion, says eMarketer. “We still expect positive growth for TV ad spend, driven by political advertising and the summer Olympics,” said eMarketer senior forecasting analyst Martin Utreras. “However, we see more ad dollars flowing to digital as a way of optimizing spending in what may be a challenging economic year.” Mobile is continuing to drive growth within overall digital ad spending. Mobile ad spending in the U.S. will rise 38% this year to $43.6 billion, according to the eMarketer report. Mobile will represent 63.4% of total digital ad spending in the U.S. this year, it says. “As consumers continue to increase engagement with mobile devices for daily activities and content consumption, marketers will further integrate all marketing activities — including advertising — to the mobile category,” said Utreras. Video will also gain, with spending on digital video advertising expected to rise 19% to $11.72 billion in 2017 and another 14%, to $13.39 billion, in 2018, eMarketer said. This year, market leader Google is expected to win 38.7% of all digital ad spending in the U.S., eMarketer said. Facebook will come in at No. 2 with a 15% share, while Microsoft ( MSFT ) will control 3.8% of the market. Yahoo will have 3.4% of digital ad spending this year, while Twitter ( TWTR ) will hold 2.4%, according to eMarketer. Among ad buyers committed to start buying advertising on social media sites, eMarketer said that 22% will begin advertising on Snapchat for the first time this year. eMarketer added that 12% planned to start advertising on Pinterest or Facebook’s Instagram, while 10% of respondents planned to begin advertising on Yahoo-owned Tumblr. In January, investment bank Cowen & Co. said that it expects U.S. digital advertising to overtake spending on TV advertising in 2016, a full year ahead of its prior forecast. It based its forecast on its survey of 50 senior U.S. ad buyers. Image provided by Shutterstock . Scalper1 News
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