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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.

 

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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.

 

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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.
Television 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.
Print Advertising:
  • Transition to digital formats by traditional print publishers.
  • Experimentation with hybrid models (e.g., digital subscriptions coupled with print editions).
Radio Advertising:
  • Growth in streaming audio ads.
  • Personalized ad experiences in streaming services.
  • Use of programmatic audio advertising.
Outdoor 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.
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Advertising Research and Trends Blog
According to millenia3.com, boomers love their linear TV:

 

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)
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