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.
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.
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.
PRACTICAL MONTHLY WEB STRATEGY TIPS