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Online Advertising Becomes More Targeted, Takes 27 Percent Share of U.S. Advertising Market, Business and Industry Trends Analysis

Both the online audience and the level of sophistication in online advertising continue to increase dramatically.  Advertisers large and small have made the internet a significant part of their advertising strategies.  eMarketer projected $72.09 billion in U.S. online ad spending for 2016 (including mobile platforms), up from $58.6 billion in 2015.  Growth to $113.18 billion in U.S. online advertising is expected by 2020.  Digital ad spending in 2016 (including mobile ads) was forecasted to be 36.8% of all U.S. advertising.  The big news in 2016 was that digital ad spending was expected to surpass TV ad spending for the first time (which was forecast to be 36.4% of total ad spending or $71.29 billion).

Online advertising includes paid search, display ads, video ads and other categories.  To take advantage of the growing base of online consumers, as well as the increases in connection and computing speeds, advertisers have developed rich media techniques such as very catchy ads with video content.



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