Advertising Research and Trends Hub
Major Categories of Advertising
Digital Advertising
- Subcategories: Display ads, search engine ads, social media ads, video ads, native ads, email marketing.
- Share of Media: Dominant, with digital advertising expected to surpass 60% of total ad spend globally.
- Platforms: Google, Facebook (Meta), YouTube, Instagram, Amazon, TikTok, LinkedIn.
- Ad Spend: Approximately $450 billion in 2023.
- Conversion Rate: Varies widely by platform and industry; search ads (3-5%), social media ads (1-2%), display ads (0.5-1%).
- Growth Trends: Rapid growth driven by increased internet and mobile device usage, programmatic advertising, and advancements in AI and data analytics.
Television Advertising
- Subcategories: Traditional TV ads, streaming TV ads (OTT/CTV).
- Share of Media: Significant but declining, representing around 25-30% of total ad spend.
- Platforms: Traditional TV networks (ABC, NBC, CBS), streaming services (Hulu, Roku, Netflix - exploring ads).
- Ad Spend: Approximately $170 billion in 2023.
- Conversion Rate: Lower compared to digital, but higher impact on brand awareness; varies by industry.
- Growth Trends: Decline in traditional TV ad spend; growth in OTT/CTV advertising as streaming becomes more popular.
Print Advertising
- Subcategories: Newspaper ads, magazine ads, direct mail.
- Share of Media: Declining, less than 10% of total ad spend.
- Platforms: Newspapers (The New York Times, The Washington Post), magazines (Time, Vogue), direct mail companies.
- Ad Spend: Approximately $50 billion in 2023.
- Conversion Rate: Highly variable; direct mail can have higher conversion rates (4.9%) compared to newspapers and magazines.
- Growth Trends: Steady decline due to digital transformation and decreasing readership.
Radio Advertising
- Subcategories: Traditional radio ads, streaming audio ads.
- Share of Media: Small, around 5-6% of total ad spend.
- Platforms: Traditional radio stations, streaming services (Spotify, Pandora, Apple Music).
- Ad Spend: Approximately $35 billion in 2023.
- Conversion Rate: Varies; generally lower than digital, but effective for local and targeted campaigns.
- Growth Trends: Decline in traditional radio; growth in streaming audio advertising.
Outdoor Advertising (Out-of-Home)
- Subcategories: Billboards, transit ads, digital out-of-home (DOOH).
- Share of Media: Steady, around 7-8% of total ad spend.
- Platforms: JCDecaux, Clear Channel Outdoor, Outfront Media.
- Ad Spend: Approximately $40 billion in 2023.
- Conversion Rate: Generally low; effective for brand awareness and high-frequency exposure.
- Growth Trends: Growth in digital out-of-home (DOOH) advertising due to technological advancements and urbanization.
Media Stats and Trends
Relative Share and Trends
Media Share- Digital Advertising: Dominates with over 60% share, continuing to grow.
- Television Advertising: Significant but declining, 25-30% share.
- Print Advertising: Declining, less than 10% share.
- Radio Advertising: Small and declining, around 5-6% share.
- Outdoor Advertising: Steady, around 7-8% share.
Ad Spend and Growth
- Digital Advertising: Rapid growth due to advancements in technology and data analytics.
- Television Advertising: Declining in traditional TV, but OTT/CTV ads are growing.
- Print Advertising: Declining consistently as digital takes over.
- Radio Advertising: Declining in traditional, growing in streaming audio.
- Outdoor Advertising: Steady growth, particularly in digital out-of-home (DOOH).
Conversion Rates
- Digital Advertising: Highest conversion rates overall, especially in search and social media ads.
- Television Advertising: Lower conversion rates but high impact on brand awareness.
- Print Advertising: Variable conversion rates, higher for direct mail.
- Radio Advertising: Lower conversion rates, effective for localized campaigns.
- Outdoor Advertising: Generally low conversion rates, effective for brand exposure.
Key Growth Trends
Digital Advertising:
- Increasing use of AI and machine learning for ad targeting and personalization.
- Growth in programmatic advertising.
- Expansion of video ads, particularly on platforms like TikTok and YouTube.
- Rise of influencer marketing as a significant component of social media advertising.
- Shift from traditional TV to OTT/CTV advertising.
- Integration of interactive and addressable TV ads.
- Exploration of ad-supported models by streaming giants like Netflix.
- Transition to digital formats by traditional print publishers.
- Experimentation with hybrid models (e.g., digital subscriptions coupled with print editions).
- Growth in streaming audio ads.
- Personalized ad experiences in streaming services.
- Use of programmatic audio advertising.
- Increase in digital out-of-home (DOOH) advertising.
- Integration of real-time data and dynamic content in DOOH ads.
- Use of mobile and location data to enhance targeting.
Advertising Research and Trends Blog
According to millenia3.com, boomers love their linear TV:
Adults ages 35-54 spent up to 26% of their total TV time watching traditional TV.
Young adults, ages 18-34, are the generation that’s least likely to watch linear TV. While this demographic represents nearly one-quarter (23%) of the TV Universe in terms of minutes watched, this population spent only 9% of their total watch time tuning into linear TV.
The youngest generation, ages 2-17, accounts for about one-fifth (21%) of time spent watching TV, but they spend significantly more time watching streaming TV, and only 7% of total minutes with linear TV.
Of those who watch broadcast TV, 60% are white, 56% male, 44% female, 22% Latino and 21% Black.
Source: Kevin Keegan, "Biggest audience demographics you can reach with TV ads" (March 2023, Millenia3.com)
Boomers is the biggest audience watching linear broadcast TV, as adults 50+ -- the Boomer and Gen X generations --dominate linear TV viewing. Of this 50+ population, 95% watch TV. Adults aged 55+ were 16% more likely than the average adult to watch broadcast TV on a weekly basis.
Adults ages 35-54 spent up to 26% of their total TV time watching traditional TV.
Young adults, ages 18-34, are the generation that’s least likely to watch linear TV. While this demographic represents nearly one-quarter (23%) of the TV Universe in terms of minutes watched, this population spent only 9% of their total watch time tuning into linear TV.
The youngest generation, ages 2-17, accounts for about one-fifth (21%) of time spent watching TV, but they spend significantly more time watching streaming TV, and only 7% of total minutes with linear TV.
Of those who watch broadcast TV, 60% are white, 56% male, 44% female, 22% Latino and 21% Black.
Source: Kevin Keegan, "Biggest audience demographics you can reach with TV ads" (March 2023, Millenia3.com)
