Wonder

Research Outline

Prepared for sandy | Delivered January 25, 2020

Brand Marketing Trends

Goals

To find statistics that show a shift in ad spending from brand-based to performance-based advertising to support the hypothesis that marketers are spending a greater share of their marketing budgets on performance-based ads owing to challenges and limitations in advertising at scale.

Early Findings

Growth in Advertising Spend in 2018 (by Media in the US)Internet advertising: 21.8% 
TV advertising: 1.4% 
B2B: 0.7% 
Magazines: -2.1% 
Radio: 1% 
Newspaper: -6.9% 
OOH: 4% 
Music: 4.5% 
Video games: 9.7% 
Cinema: 4.3% 
Growth in Performance Pricing's Share of Internet AdvertisingThe share of performance pricing in total internet advertising revenue in the United States rose from 41% in 2005 to a high of 66% in 2012; it was 62% in 2018. 
In the period 2005 to 2018, the share of CPM pricing reduced from 46% to 35%.    
Emarketer's Projections for Digital's Share of Total Advertising Spend (US) 2018: 48.6% 
2019: 52.4% 
2020: 58.5% 
2021: 62.3% 
2022: 64.8% 
2023: 66.8% 
Quadrupling of Internet Advertising Spend in the Period 2010-2018 (US)Between 2010 and 2018, internet advertising spend in the United States grew from $26 million in 2010 to $107.5 million in 2018.