This year will be an important milestone for the US advertising industry. According to eMarketer's latest forecast, digital advertising spending in the United States will exceed traditional advertising spending for the first time this year . By 2023, digital advertising spending will reach two-thirds of total advertising spending. This year, total digital advertising spending in the United States will increase by 19% to $129.34 billion, accounting for 54.2% of total US advertising spending.
Mobile devices will continue to dominate, accounting for more than two-thirds of digital advertising spending, and advertising spending on mobile devices will reach $87.06 billion this year. In addition, the combined advertising share of duopoly (Google and Facebook) will decline for the first time, Google's share will drop from 38.2% last year to 37.2%; Facebook's share will drop from 22.8% last year to 22.1%.
The biggest winner this year will be the third-ranked Amazon, which will continue to gain share from almost all its competitors. Its US advertising business will grow by more than 50% this year, and its share of the US digital advertising market will increase to 8.8% this year. eMarketer forecast director Monica Pelt said that Amazon offers a major benefit to advertisers, especially CPG and direct-to-consumer (D2C) brands.
The Amazon platform has a wealth of shopper behavior data that can be used to identify goals and provide real-time access to purchase data. This type of access was once shared only by retail partners. But with Amazon's series of sponsored ads, marketers can access consumer shopping behavior data like never before. The data also shows that TV advertising spending will drop 2.2% this year to $70.83 billion, mainly because there are no elections or major events such as the Olympics or the World Cup. Next year's presidential election will push TV advertising spending back to positive growth, but will fall again in the next few years.