The world of advertising is in a continual state of flux. One minute everybody is rushing in the direction of social media; the next, they’re on the hunt for influencers.
As a result:
Advertising statistics change from year to year. The way marketers get their message out to their audience keeps evolving as they come up with new ideas.
The thing is:
There are no hard and fast rules. Whatever works is the best strategy, so long as it’s legitimate.
Do you want to know how the industry is changing? Good.
We’ve compiled a comprehensive list of the latest stats and facts. We’ll run through a variety of online, offline, and TV commercial statistics to give you a sense of what’s important and what’s not.
Keep on reading for the latest advertising statistics for 2020.
Fascinating Ad Statistics
- The advertising industry is now worth more than $1.2 trillion.
- Advertisers spent more than $116 billion on Google ad services in 2018.
- People see between 4,000 and 10,000 adverts daily.
- The retail sector accounted for 49% of all mobile ad spending.
- The average small business spends $100,000 to $120,000 on Google advertising per year.
- Advertisers spent $260 billion globally on internet advertising compared to $190 billion on television.
- Businesses make around $2 for every $1 they spend on PPC.
- Marketers now spend 51% of their budget on mobile ads.
- 70% of people say they dislike mobile ads.
How is the overall advertising industry shaping up? Take a look at the following insightful and pretty shocking statistics:
1. The advertising industry is now worth more than $1.2 trillion.
How big is the advertising industry? Glad you asked. Recent data for the global economy suggests that it’s worth more than a whopping $1.2 trillion or $1,200 billion for those of you who don’t like dealing in trillions.
A trillion is a significant number. The entire Spanish economy, for instance, is worth only about $1.3 trillion.
What’s more, the industry as a whole is growing fast. Data reveals an average annual growth rate of around 4%, in line with the global economy.
That’s not all:
2. Advertisers spent more than $116 Billion on Google ad services in 2018.
How much money is spent in advertising each year? That depends on where you look.
Analysts expect Google, for instance, to invest close to $120 billion in 2019 in advertising.
Globally, social media spending will grow by 21% over the coming year, hitting a whopping $58 billion.
TV advertising is worth around $190 billion, while newspaper advertising is down from $105 billion in 2000 to just over $45 billion today.
The numbers are enormous, but the devil is in the details.
Check out this next crazy statistic:
3. Mobile ad spending grew by 25%, while desktop spending dropped by 4%.
Advertisers are piling into mobile like there’s no tomorrow.
The statistics suggest that while mobile ad spending grew by a quarter in 2018, spending on desktop went down.
This is a reflection of a broader trend. People aren’t using their desktop computers as much as they used to. It’s far more convenient to pick up a mobile device and start shopping. While the desktop isn’t dead just yet, it is dying a slow and painful death.
4. People see between 4,000 and 10,000 adverts daily.
How many ads are we exposed to daily? The number will shock you.
Data from Red Crow suggest that the average person sees between 4,000 and 10,000 advertisements daily online, on television, in magazines, and in the real world as they wander around.
That sounds like too many. Surely, advertisers aren’t exposing us to that many ads?
The numbers, however, do not lie.
Remember, every time that you see a brand label, you experience advertising. Go and open your kitchen cupboard:
You’ll immediately see dozens of branded cereal boxes, pepper pots, tin cans, and much more.
If you think all this advertising must cost a lot, you’d be right. Studies have found that:
5. The average small business spends $100,000 to $120,000 on Google advertising per year.
Google is one of the most valuable companies in the world, and when you find out how much the average small business spends on the platform, you soon see why.
The average advertising cost for small businesses on the platform is an incredible $9000 to $10,000 per month or $100,000 To $120,000 per year.
These enormous costs aren’t an indication that companies are getting a lot of clicks, either. Some Google and Bing ads, for instance, cost more than $50 per hit – that’s a lot of money.
6. The retail sector accounts for 49% of all mobile ad spending.
Advertising spending by industry statistics reveal that the retail sector accounts for the lion’s share of mobile ad spending, making up 49% of the total.
Media advertising accounted for a further 24% of the spending pie, while finance advertising was just 6% of the total.
If you think that’s crazy, check out this next stat:
7. Global magazine advertising spending is $26.8 billion in 2019 and will fall to $21 billion in 2022.
Magazine ads statistics don’t look very healthy right now. The total value of the industry globally today is around $28 billion. However, it looks set to fall by nearly a quarter over the next three years as other forms of advertising replace it.
It gets worse:
Newspaper print advertising statistics aren’t much better, either. Estimates suggest that business ad spending in newspapers will decline from around $47 billion today to less than $40 billion in three years.
8. Digital advertising spend will reach $517 billion by 2023.
Estimates suggest the digital advertising industry revenue will top $517 billion in 2023, up nearly 30% on today’s figures.
But wait a second, who’s spending all this money?
9. Some companies spend more than $1 billion on advertising every year.
The companies that spend the most on advertising tend to operate in the US.
In tenth place is Verizon, the giant American telecoms conglomerate. Accounts from 2018 reveal the company spent more than $2.68 billion on advertisements, with nearly a billion of that just on marketing its brand.
Next on the list is credit card company American Express, forking out a whopping $2.8 billion in various attempts to get customers to sign up for its services.
Google – the advertising king – spends a lot on advertising too. The company reported last year that it forked out more than $2.96 billion on marketing to companies across the world.
The answer is Comcast Corp, which spent an incredible $6.12 billion on advertising its media offering. Comcast subsidiaries, including NBC, Sky, Telemundo, and Universal Pictures.
Digital Advertising Statistics
Digital advertising has taken the world by storm. It wouldn’t be an understatement to say that there’s been a revolution. The last time we saw such a change in the way that companies spend their money on advertising was with the introduction of the radio and TV. Times are changing.
Here are some of the most critical online advertisements statistics you need to know right now:
10. Advertisers spent $260 billion globally on internet advertising compared to $190 billion on television.
In 2016, digital ad spending exceeded television for the first time. While television ad revenue has grown slightly since then, internet marketing has skyrocketed, with the world now spending a mind-blowing $100 billion more on the latter.
What percent of advertising is online? In 2018, researchers put the figure at around 40%. With other forms of advertising, like newspapers and magazines in chronic decline, internet advertising looks set to continue its meteoric rise.
11. Digital advertising will comprise 47.3% of global ad spending by 2020.
As far as online advertising vs traditional advertising statistics goes, this is one of the most important. Digital advertising will soon eclipse global ad spending, reaching 47.3% of the total in 2020 and 49.6% in 2021.
What does this shift in advertising mean?
Essentially, it means that the media landscape is going to change fundamentally. TV companies are going to have to downsize, just like the radio broadcasters before them, and focus more heavily on creating fewer, but higher-quality shows.
It also means that the world of on-demand, internet-based media is going to explode (something that we’ve seen a lot of recently).
Right, onto the next digital advertising stat:
12. 80% of online shoppers watch YouTube videos related to the products they want to buy.
If you have an inkling that video advertising is essential, you’d be right. Data from Google suggests the vast majority of shoppers will watch a YouTube video before deciding whether to purchase a product.
So, it’s becoming increasingly vital for advertisers to churn out content that sells.
Marketers are putting out videos that talk about their products while also making connections with influencers. The more YouTube stars they can get behind their campaigns, the better.
13. Google controls 75% of the mobile search market.
(Net Market Share)
When it comes to mobile search, Google is utterly dominant.
The California-based search giant controls more than 75% of the market for mobile devices, beating the likes of Bing and Yahoo by a country mile.
Baidu, the Chinese search engine, has around 9.2% of the market according to the latest statistics, with Yahoo a distant fourth in the global rankings with just 2.82% of the market total.
It’s no wonder that SEO is synonymous with the word Google.
14. 70 to 80% of users regularly ignore paid search results.
(Search Engine Land)
Internet advertising statistics can be shocking, and this is undoubtedly one of the most.
Despite all the money that advertisers plow into Google, Bing, and Yahoo every year, most of users still regularly ignore sponsored search results.
What the heck is going on?
It turns out that consumers are pretty savvy. They know that ad links at the top of the page are paid links, not organic results. They are, therefore, wary that whatever content lies beyond is either low quality or an attempt to sell them something they don’t really need.
Most users prefer to scroll down and benefit from the organic content instead.
15. Ad blockers block an average of 200 ads per day on desktop alone.
The advertising exposure statistics we discussed earlier are shocking. The majority of people consume between 5,000 and 10,000 advertisements per day. It’s exhausting.
For this reason, many now use ad blockers, special browser plugins that root out advertisements and prevent the browser from displaying them.
Data from StopAd suggests that these blockers are highly effective. They estimate that their product blocks some 200 ads per day on desktop alone. On mobile, the number is likely even higher.
Is there any good news for advertisers?
Read on to find out:
16. People are 13 times more likely to share video ads than text with links.
We love all things visual, so it’s no surprise we are more than 13 times more likely to share videos with their friends than text with links. Video is just so much more compelling, as the latest advertising stats also confirm.
17. Adding a video to an email increases conversions by 200 to 300%.
It’s crazy how much of a difference video can make.
The average marketing email is rarely anything special. But add a video to a campaign, and you can double or triple its effectiveness.
When you think about it, this makes sense. Video allows you to introduce yourself and explain what you offer better than text or even pictures.
Are you using video in your marketing? You should because:
18. 87% of all marketers now use video as part of their strategy.
Without a doubt, business is cottoning onto the fact that video is the most powerful digital marketing medium. While reading blogs might be fun for a select few, the average person wants a short, entertaining video snippet that adds real value to their lives.
19. Google’s advertising revenue is twice the size of Facebook’s.
Google made more than $116 billion in digital advertising revenue in the 2018 fiscal year.
Facebook, by contrast, made $55 billion, and poor old Twitter was down in the doldrums at just $2.6 billion. LinkedIn has seen revenue growth, but it is much smaller. Social media advertising, therefore, is not yet as big as paid search, although it is catching up fast.
20. Mobile advertising spend will top $250 billion globally by 2023.
Estimates put the current global ad spending at around $159.9 billion. That number, however, is set to rise rapidly, hitting a massive quarter of a trillion by 2023.
Where is all this growth coming from? The majority of it, it seems, is from the Asia-Pacific region. The low cost of mobile devices means that millions of new people get access to the internet every week, increasing the mobile ad audience. As countries in the developing world get wealthier, advertising industry worth will go up.
There will be problems, though, as this next statistic implies:
21. Ad fraud consumes $1 for every $3 spent on digital ads.
Online ad fraud is a severe problem for businesses. Bots that hide their IPs and trawl the internet can make millions of fake clicks on adverts, causing firms to incur costs unjustly.
Google, Facebook, LinkedIn, and other companies have all vowed to fight bot clicking fraud, but it’s a challenge. False advertising statistics reveal that the activity consumes nearly $7.2 billion of global advertising budgets every year.
Companies are, of course, aware of the problem and say they’d be willing to pay Google and the others an 11% premium for certified human traffic.
Ready for more? Check out these insane pay-per-click stats:
Pay per click advertising is allegedly one of the most potent tools to grab the attention of customers. But how effective is it, actually? Take a look at the following advertising stats:
22. 8% of users are responsible for 85% of all clicks on display ads.
If you think most people are clicking on display ads, think again.
Advertisement statistics from Invesp show that the majority of people are not clicking on the banner and PPC ads they see as they surf the Web. Only 8% of people, a small fraction, click on these ads.
Advertising facts and statistics reveal something remarkable:
Digital marketers need to do more than just spam paid links and banner advertisements. They need to find novel channels to gain the interest of the remaining 92% of people to increase their advertising effectiveness.
23. Only 31% of people respond to an ad by clicking on it.
If you think the only way people respond to ads is by clicking them, you’re in for a surprise:
Data suggests that slightly less than one-third of people who respond to a PPC ad click on the actual link. 27% search for the brand or product using a search engine, 21% type in the company address into their browser, and 9% research more information about the product.
So what’s the takeaway? The bottom line is that digital marketers need to adopt a multi-pronged approach. It’s not enough to just pay for PPC advertising and then hope for the best. SEO and content marketing are also imperative.
So, what’s next?
24. Businesses make around $2 for every $1 they spend on PPC.
When it comes to digital marketing, it’s ROI that counts. In other words, do you get more money out than you put in?
The answer is “yes,” at least according to Google AdWords statistics compiled by Blue Corona.
The return isn’t small, either. Putting in a buck and getting two out implies a 100% return.
Try finding earning like that on other investments!
Mobile Advertising Statistics
Mobile advertising is hot right now, mainly because the majority of people now browse the Web on their handheld devices.
The following ad statistics are a real eye-opener if there ever was one:
25. 70% of people say they dislike mobile ads.
Marketers like to think that their advertising is popular.
Unfortunately, it isn’t, as the latest advertising statistics make abundantly clear. Do you like it when an ad pops up on your mobile device? Probably not because it gets in the way of what you’re trying to do.
So, the fact that as many as seven out of ten people feel the same one is telling, and it makes a lot of sense.
26. Marketers now spend 51% of their budget on mobile ads.
We’ve now reached a tipping point in mobile targeted advertising statistics. The data shows that the average company now spends slightly more than half of its budget on mobile advertising, underscoring the importance of the platform.
To stay competitive, advertisers need to put a sound mobile strategy in place. If they don’t, they risk being left behind by the competition.
It’s clear that we are living through a seismic shift in advertising from the physical world to the digital.
But it’s lumpy.
While there has been a massive increase in the amount companies now spend on mobile advertising, the same is not true of desktop – a platform that is actually in decline.
Advertising is also becoming more concentrated. Google dominates search, while Facebook rules social media.
These advertising statistics reveal that the industry as a whole is still growing actively, even as magazine and newspaper revenues fall. Surprisingly, television advertising is still increasing slightly, but nothing like as fast as it would have done had the internet never come along.
Net Market Share
Search Engine Land