Online Advertisement In U.S. To Reach $62 Billion By 2016 [STUDY]

Must Read

Can CBD Gummies Be Beneficial For College Students?

College students often feel more pressure than they have ever—or will ever—feel in their entire lives. Many...

Will Google’s Move To Delete 2,500 YouTube Channels Add Fuel To The Fire With China?

The US-China trade war has started rearing its ugly head. Both sides are now turning to extreme...

India Enterprise IT Spending To Reach Rs. 1,910 Billion In 2012: Manufacturing And communication Industry To Drive The Growth

Manufacturing and Communication Industry is expected to drive the overall growth in the years to come. Sectors like Education,...

Online Advertisement plays major role in shaping the brand values, revenue as well as profit for companies. Quite convinced with the fact, companies are also spending billions of dollars on the advertisement arm every year and its going to increase further more in coming years. Taking the view of online advertisement spending, a study was conducted which highlights that by the end of 2012 online advertisement spending will reach $40 billion U.S. and is expected to grow to $62 billion by 2016.

Online Advertisement is mainly classified into three formats namely search, banners and video. As the industry is witnessing great shift across the globe and infrastructure is improving, all the three will be responsible for 80% of online advertisement revenue by 2016.

Search based advertising will maintain its legacy as the leader with around 46.9 percent by 2016 followed by banners’ 20.5 percent contribution. However, it is expected to shift down its share by 2.5% in 2016 compare to 2012.


Surprisingly, online advertising through video will emerge as most attractive channel as its spending share will surge year-over-year to reach 15 percent by 2016.

Study reveals that advertising expenditure will increase exponentially year-over-year and is expected to touch $62 billion by 2016 – rise of $22 billion compared to $40 billion in 2012.

Interestingly, Despite of having highest advertisement share, Video format will see sharp decline by 2016. But 2012 is going to be the most effective year for video as it will touch the highest growth ever in the said year. From 42.1% in 2011 to 54.7% in 2012 and then decline towards 18.1% only in 2016 speaks about video format rise and fall in next few years. This will be mainly due to the upcoming U.S.presidential election and Olympic Games 2012.

Though, the contribution of email advertisement channel will be quite low by 2016, but it is expected to be the only channel that will record positive year-on-year growth. In next five years, Email advertisement trend will move up from negative value to 3.8% growth in 2016

Online advertisement is continuously dominating over traditional advertising for last half a decade. It has emerged as one of the cheapest but the most effective modes of advertisements. It is a multi-way process compared to direct marketing which is generally confined into traditional style of promotions. Considering the success achieved by companies from online advertisement, many other old styled marketers are showing their interest in online advertisement and burning fresh blood of cash into it which will be the prime reason behind such astounding growth.


I feel online advertisements help users as well as companies to know the feedback about their products in short span of time. Apparently, advertising on social networking sites has been increased in an enormous rate as social media is a place where an advertiser can make their product available to more than billion of the users in short time period.



Please enter your comment!
Please enter your name here

Latest News

OYO Introduces New Initiatives to Increase Employee Satisfaction

With work from home having become the new norm for most Indian startups due to mandatory social...

Amid Acquisition Talks, TikTok Gearing Up For A Legal Battle!

Desperate times call for extreme measures. The popular short-form video app TikTok has been facing unprecedented amounts of backlash from Uncle Sam...

PAN-Aadhaar link: 32.71 Crore Indians Can Now Reap the Benefits

The agenda to link every citizen's Aadhaar card with their PAN card has been on the Indian Government's radar ever since 2017....

When A City Had To Pay Ransom To Cyber Criminals!

While the rapid advancement in technology surely did gift us with newer and more powerful devices, be it smartphones or iPads, it...

Can Twitter’s New Feature Really Make You Feel Safe?

Twitter has been on what seems like a campaign to make the site a place for more meaningful conversations among users. Ever...

TikTok Acquisition: Not A Cake Walk for Microsoft

After President Trump announced an order banning US companies' transactions with Chinese businesses, which is set to come into effect 45 days...

In-Depth: Dprime

Will ‘TikTok By Microsoft’ Be A Winner?

For the last two years, TikTok has been in the public eye for all sorts of reasons. First, it was the exploded...

Facebook Subscription Model: Looking Beyond Ad Dollars?

Seldom do job listings create a stir this gripping. However, when the job listing in question is a stealth post from Twitter,...

Will The Online Food Delivery Market in India End Up Becoming A Two-Horse Race?

It's pretty much evident that the food delivery space in India is all set to get riled up soon enough as one...

More Articles Like This