2017 digital marketing predictions you should know

2017 Digital Marketing Stats You Should Know

2INSERT DECK TITLEDIGITAL MARKETING STATSCOPYRIGHT © 2017 KATANA. ALL RIGHTS RESERVED.

As we close out 2016 and welcome 2017, it is once again ?me for predic?ons season in the digital marke?ng world, and our “2017 Digital Marke?ng Stats You Should Know” resource guide is packed with the important insights that should be top of mind. We have scoured primary data and resources to provide you with a collec?on of key facts that will hopefully help you and your organiza?on op?mize your business model for a success.

Digital marketers have become all too accustomed with the con?nuously changing behavior of users. Couple that with technical innova?ons, such as the predicted consumer adop?on of virtual reality, marketers who stagnate will find themselves diminished and behind the curve.

The United States, as the leading global economy, is predicted to experience significant growth due to the expected preferen?al business policies that will be implemented by the new administra?on. Further, we are currently amidst the highest CEO confidence levels since the depression of 2008, and marketers are projected to increase spending by over 14% year over year. The amalgama?on of these three figures warrants an increase in business revenue and ad spend.

As a final note, many of the marke?ng spend increases will be aVributed to technology and automa?on. Ar?ficial intelligence (AI) will be undoubtedly the poster child of 2017, and marketers can expect to see some variances or itera?ons of AI across all marke?ng ini?a?ves to come.

Con?nue reading to learn more about how automa?on, technology and ar?ficial intelligence will be the formidable drivers of ad revenue and growth in the 2017 digital space, influencing ad spend across social pla[orms, paid search, display, TV, OTT, video, radio and other digital outlets.

We wish you a happy and healthy 2017, full of success and digital marke?ng innova?ons!

Melissa Lopez, CEO Katana

Global advertising revenues will reach $510.7 billion in 2017, a 3.6% growth from 2016’s $493 billion.

Source: www.mediapost.com

31.736.6

42.8

49.5

59.6

68.1

75.6

88.193.5

Digital Ad Spend Growth in the United States Revenue in Billions

Source: PwC Global Entertainment and Media Outlook, 2016

2011 2012 2013 2014 2015 2016E 2017E 2018E 2019E

US Digital ad spend growth is projected to increase 11.01% YoY from $68.1 billion in 2016 to $75.6 billion in 2017.


$68.

88 49.5

US TV* vs. Digital** Ad Spend 2015-2020 Revenue in Billions

Source: www.emarketer.com

2015 2016 2017 2018 2019 2020

In 2017, digital adver?sing is predicted to aggregate $72.72 billion ad dollars while TV is expected to reach $82.86 billion.


$59.

82 $71.

29

$72.

09

$72.

72 $82.

86

$74.

53

$93.

18

$76.

02

$103

.39

$77.

93

$113

.18

TV* Digital**

NOTE: *Broadcast TV (network, syndicaHon and spot) and cable TV; **Various forms of adverHsing formats that is served on desktop, laptops, mobile phones, tablets or other connected devices

TV ad spend is forecasted to grow by an estimated 2% each year until 2020. In 2020, TV ad spending’s share will fall below one-third of the total

media ad spend for the first time in US history.Source: www.emarketer.com

16.3 16.5 16.7 17.2 17.4 17.7 17.9 18.0 18.2

Radio Ad Spend in the United States 2011-2020 Revenue in Billions

2011 2012 2013 2014 2015 2016E 2017E 2018E 2019E

Radio adverIsing spend will reach $17.87 million in 2017, experiencing 1.07% growth YoY.


2020E

18.3

Spen

ding

in b

illio

n U

S do

llars

Source: PwC Global Entertainment and Media Outlook, 2016


Total Media Ad Spending Share in the United States 2014-2020 % of Total

2014 2015 2016E 2017E 2018E 2019E 2020E

TV*Digital— MobilePrint— Newspapers**— Magazines**

Radio***Out-of-homeDirectories**

Source: www.emarketer.com, March 2016

NOTE: *excludes digital; **print only, excludes digital;*** excludes off-air radio and digital

39.1%28.3%10.9%17.4%9.1%8.3%8.4%4.0%2.8%

37.7%32.6%17.3%15.4%8.0%7.4%7.8%4.0%2.5%

36.8%35.8%22.7%13.9%7.2%%6.8%7.4%3.9%2.2%

35.8%38.4%26.2%12.9%6.6%6.4%7.0%3.8%2.0%

34.8%40.8%28.8%12.2%6.1%6.1%6.7%3.7%1.9%

33.7%43.1%31.0%11.6%5.7%5.8%6.4%3.5%1.8%

32.9%44.9%32.9%11.1%5.5%5.6%6.1%3.4%1.6%

Digital is the frontrunner of all media spend, accoun?ng for 38.4% of total media spend in comparison to print’s 12.9% ad spend.

Mobile will continue to accelerate overall digital ad spend, growing 38.0% in 2016, accounting for $43.60 billion of total ad spend. Mobile

ad spend represented 63.4 of total digital ad spend in the United States.Source: www.emarketer.com

In 2016, mobile users spent 3:08 non-voice minutes interac?ng with their devices using

radio, social networks and video. In 2017 mobile users will increase non-voice minutes by 3.24%

to 3:18, with the majority of Ime spent listening to mobile radio plaWorms.

On desktop and laptops, ad blocking will increase 21.99%, from 63.2 million in 2016 to 77.1 million

in 2017.

Furthermore, ad blocking on smartphones will increase 43.48% from 20.7 million in 2016 to

29.7 million in 2017.

Na?ve ads are taking over digital adver?sing, largely aVributed to social media pla[orms like Facebook. In 2017, naIve display is

projected to reach $20.9 billion, an increase of 24.4% from $16.8 billion in 2016.

Monthly digital video viewers will increase 5.3% globally, increasing from 695.5 million viewers in

2016 to 732.4 million viewers in 2017.




Source: www.businessinsider.com

Globally, net media advertising revenues increased by 5.7% in 2016 as the result of digital ad sales augmenting by 17%. Meanwhile, offline media ad sales, including

channels such as linear TV, print, radio and out-of-home flatlined at 0.3% growth.

Source: www.magnaglobal.com



Global Media Ad Spend 2016 Revenue in Billions

2016 Size ($B)

Grand Total (Global, All Media)

US


493180191100

5.7%6.9%

6.7%3.9%

2712124

100%37%39%20%

3.6%1.7%1.8%2.4%

In 2016, digital ad sales experienced a growth of 16.9% in comparison to offline ad sales 0.3% growth.

Furthermore, North America (specifically the United States) accounted for the majority of global media spend and growth. North America was responsible for 39% of the total share, increasing 6.9%.

NOTE: *Includes linear ad sales on legacy plaWorms. Excludes publishers’ ad sales on digital plaWorms; **Includes ad sales across all digital plaWorms; ***Includes ad sales from all digital formats on mobile smartphones and tablets

Global Media AdverIsing Revenue 2016 Growth (%) 2016 Growth (B) Share of Total 2017 Growth

North America

Western EuropeCentral & Eastern Europe

La?n America

Asia Pacific

16

23148

6.0%

5.5%5.3%

1

17

3%

5%30%

5.6%

6.2%5.4%

Digital Ad Sales** 178 16.9% 26 36% 13.3%Search and Social** 123

80

23.5%

47.5%2326

25%16%

17.0%31.4%Mobile***

Offline Ad Sales*Linear TV*

Print*Radio*OOH

315 0.3% 1 64% -0.9%18669

3.8%

-9.1%7

-738%14%

1.0%

2931

-0.55%3.3%

-0

16%6%

-1.0%2.9%

-0.9%


TV* vs. Digital Video** Ad Spend 2014-2020 Revenue in Billions and % Change

2014 2015 2016E 2017E 2018E 2019E 2020E

TV*

Digital Video— % Change


$68.543.3%

$5.2440.8%

$68.880.5%

$7.6646.0%

$70.602.5%

$9.8428.5%

$72.012.0%

$11.7219.2%

$73.812.5%

$13.3914.2%

$75.292.0%

$15.1513.1%

$77.172.5%

$16.6910.2%

Digital video is projected to increase 19.2% — from $9.84 billion ad spend in 2016 to $11.72 billion ad spend in 2017 YoY.

— % Change

NOTE: *Broadcast TV (network, syndicaHon and spot) and cable TV; **Various forms of adverHsing formats that is served on desktop, laptops, mobile phones, tablets or other connected devices; includes ads that are served before, during or aYer digital video content in a video device player

Social media is the largest contributor to digital budgets and the fastest growing format. Social media advertising sales (including video) increased by

46% globally in 2016 to $33 billion. In 2017, advertising sales are expected to grow at a steady rate of 29%.


In 2016, Facebook increased revenue by 55% YoY to $24.7 billion, and its net income

increased 165% to $7.5 billion.

In 2017, Facebook ad revenue is expected to grow 36% to $33.76 billion.

eMarketer projects that Google dominated the global paid search marke?ng in 2016, bringing in

$57.8 billion in total digital ad revenue, and is projected to bring $62.15 billion in revenue in

2017.

Google’s net ad revenue is projected to grow 7.5% in 2017.

TwiVer was predicted to generate nearly 90% of its revenues from mobile devices, worldwide.

In 2017, Twiber is predicted to grow 24.9% from $2.61 billion in ad revenue to $3.26 billion.

Snapchat’s ad revenue is projected to capture $935.46 million in 2017, accoun?ng

for 2% of total social network ad spend.

YoY from 2016 to 2016, Snapchat’s ad revenue is forecasted to grow 155.1%.





Cord-cutters will increase 15.4% from 5.5 million in 2016 to 6.4 million in 2017.


STAY IN TOUCH!

Contact: [email protected] 225 Broadway Suite 430, San Diego, CA 92101

mailto:[email protected]