There are constantly news stories of problems associated with digital advertising ranging from fraud to just being ineffective at driving sales (when done poorly). This may lead many people to think that businesses will be spending less of their advertising budget on digital, but that is just not the case. According to new research from Zenith, advertisers plan on putting 40.2% of their ad budget into digital in 2018, which is up from 37.6% in 2017.
Vittorio Bonori, Zenith’s Global Brand President, said, “We are observing sustained ROI from digital transportation. And we are now at the forefront of a transformation as brands shift budgets along the consumer journey, benefit from powerful algorithms and advanced machine learning techniques, and invest in new e-commerce solutions. This transformation is at the heart of driving brand growth.”
In addition, Zenith reports that the effectiveness of digital advertising is also quite good. They developed their own standard index for how digital ads perform. In it, they found that the more a company invests in digital advertising, the better the results.
The increase in percentage of advertising budget that is going to digital is also helping to push the total ad spend up significantly. In the US, the digital ad spend in 2017 went up by 13.7%, reaching $204 Billion. By 2020, Zenith predicts that online advertising will make up 44.6% of all global ad spend.