Why Online Ad Spending in 2013 will reach record levels this Holiday Season.

Dec 21, 2013

Online Ad Spending during 2013 Holiday Season.

At the end of the holiday season ecommerce ad spending is expected to reach record levels. Online shopping has become an increasingly popular method for purchasing gifts during the holiday season. The ad spending will be focused particularly on mobile devices and will be used to drive sales in the growing ecommerce sector.

With an increase on last year’s spending budget, eMarketers predicts retailers within the United States have shown a growth of 15.7%. This is an increase of 9.5 billion and is up on last year’s 14.5% growth. Injecting revenue into the online market shows a shift in how retailers view online shopping.

Online Ad-spending-2013

The spending will focus directly on holiday shoppers and a large portion of retail revenue comes from the end of the year. eMarketer predicts that 23.5% of retail ecommerce sales in the US take place in November and December. This amount comes to $61.8 billion. A growth of 16.4 percent is also expected bringing the total to $262.3 billion for this year.

Retailers are the biggest spenders on digital advertising with a 22.3% share of all total digital ad spending. This is identical to last year’s spending, although a slight fall is expected in coming years with a growth in other markets.

Why Online Ad Spending will reach record levels in 2013 Holiday Season.

Most of the spending will go towards mobile advertising, especially search. Retailers are expected to target their display venues on websites with large audiences, for example Face book and Twitter. These platforms give the companies an already built in audience to target with strong demographics. Social media is also a fast moving platform that has replaced word of mouth advertising.

 In the Final Analysis

  • US retail industry will grow its digital ad spending more rapidly this year than in 2012, according to new figures from eMarketer
  • By the end of this year, eMarketer predicts, US retailers will have increased digital ad budgets by 15.7% to $9.50 billion, following growth of 14.5% last year.
  • eMarketer predicts 23.5% of all US retail ecommerce sales occurs in November-December, amounting to $61.8 billion.
  • Estimated Total US retail ecommerce sales will grow 16.4% to $262.3 billion this year.
  • Retailers already spend more than any other industry vertical on digital advertising,
  • This year it is expected that the retail industry will account for 22.3% share of total US digital ad spending

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