The US retail industry’s advertising spending on paid digital media will reach $11.05 billion in 2014 and rise to $17.39 billion by 2018, for a 12.8% compound annual growth rate between 2013 and 2018. Even though digital spending growth for the industry has begun to slow, retail continues to spend more than any other US industry and will maintain this lead for at least the next several years, according to a new eMarketer report, “The US Retail Industry 2014: Digital Ad Spending Forecast and Trends,” part of our new report series, “2014 Digital Ad Spending Benchmarks by Industry.”
The US retail industry is still very much skewed toward direct-response advertising. Direct response includes paid ad formats designed to drive some type of action, typically sales or leads. Stores need customers coming through the doors, and ecommerce thrives on conversions. eMarketer’s 2014 analysis of US digital ad spending shows a stronger emphasis on ads meant to trigger sales and leads than those intended to boost brand awareness, with a 70-30 split between objectives. Read the rest at eMarketer.