The telecom industry is the fourth-largest spender on digital advertising in the US after the retail, financial services and automotive sectors. Despite telecom’s size, eMarketer expects the industry to lag almost all other US verticals in digital ad spending growth, according to a new report, “The US Telecom Industry 2014: Digital Ad Spending Forecast and Trends,” part of our new report series, “2014 Digital Ad Spending Benchmarks by Industry.”
One of the reasons for telecom’s relatively slow growth curve is its reliance on search, which will lose share to video and rich media over the next several years. In addition, telecom continues to depend heavily on TV advertising, which wireless carriers and multichannel video providers use to highlight their offerings and poach customers from rivals. Further, telecom advertising is dominated by a handful of deep-pocketed players that plan ad budgets far in advance and don’t move as quickly as companies in industries with faster-shifting dynamics. Read the rest at eMarketer.