Digital Advertising Continues Record-Breaking Growth

Caid Christiansen• December, 11 2015

Last week on our blog, we highlighted a point that’s easy to forget in today’s “digital-first” ad landscape: You should not discount the value of direct mail and print.

And that’s true. For certain companies and products, print advertising can still have a significant positive impact. With more and more advertisers shifting to a digital-heavy strategy, it’s important not to rule out print as a tactic in your arsenal.

Today, then, here’s the other side of the coin. A new report from the Interactive Advertising Bureau (“Q3 2015 IAB Interactive Advertising Revenue Report“) reveals that spending on U.S. internet advertising is higher than it’s ever been. The report, conducted by PricewaterhouseCoopers and published by IAB, found that revenues hit $15B in Q3 2015, the highest quarter on record. This is a 23% increase over Q3 2014, when revenues were $12.2 billion.

“Brands and agencies are focusing ever more attention on interactive screens, following consumers as they flock to digital platforms to be entertained, engaged, and informed,” said Sherrill Mane, Senior Vice President, Research, Analytics, and Measurement, IAB.

“These numbers demonstrate that digital is a critical part of the marketing mix,” said David Silverman, a partner at PwC US. “Brands understand that interactive provides the type of rich, immersive experiences that attract today’s audiences, no matter the environment or time of day.”

It’s hard to argue with these numbers. Print may still be an important tactic, but digital advertising continues to break spending records year over year. With the rise of mobile advertising and new digital ad technologies, it’s hard to think that this growth will stop any time soon.

The takeaways for your company? As spending increases, expect advertisers to get craftier about way to market products. More money should theoretically mean more research going into the latest tactics and ways to break through the noise. There’s a risk, however, of the space becoming overcrowded–so this isn’t a 100% sure sign that you should dump all of your money into digital ads. And finally, to play off of the point we made in our introduction, this may also present an opportunity for brands that pursue alternative channels (like print) while everyone else continues spending on digital.

Realistically, a sound marketing strategy will include digital and print tactics–and everything in between. With $15B spent on digital ads in Q3 2015 alone, however, it’s hard to argue with digital advertising being a force to be reckoned with.