Internet Ad Spend Is About to Surpass TV Ad Spend [New Report]

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There are few things I look forward to more every year than the release of Mary Meeker’s Internet Trends Report.

It’s clear, it’s visually interesting, and most importantly, the results are always fascinating — with tremendous implications for marketers.

Meeker’s report is chock-full of data about how the way users operate online is changing. And man, are things changing. Voice queries are replacing the typical internet search, Netflix and other streaming services are replacing cable television, and social media is overtaking traditional cable TV habits.

Another way the internet is changing TV? Advertising. In her report, Meeker predicts that in 2017, spending on internet advertising will surpass spending on TV advertising for the first time — and eventually exceed $200 billion.

In this post, we’ll dive into how this change is taking place, and what the future of advertising looks like — in 2017 and beyond.

The State of Internet Advertising in 2017

Here’s a visualization of Meeker’s prediction — which also shows the rapid trajectory of internet advertising spend since the 1990s:

Internet Trends 2017 Report from Kleiner Perkins Caufield & Byers

As you can see from Meeker’s slide, internet advertising spending will exceed $200 billion this year — beating TV advertising spending for the first time.

The magnitude of this can’t be overstated — the first television ad aired in 1941, and the first internet ad was placed in 1994. It took the internet only 24 years to disrupt and outpace the 76-year-old TV advertising industry — making it almost three times faster and more agile.

Meeker’s report also outlined where the bulk of internet advertising dollars are spent — and to nobody’s surprise, online advertising is growing at an explosive rate on Google and Facebook (20% and 62% year-over-year, respectively).

Internet Trends 2017 Report from Kleiner Perkins Caufield & Byers

This data means that the online inbound marketing world is disrupting — and outpacing — the traditional outbound marketing world. But it’s reflective of other trends and changes, too.

The future of online advertising is mobile. Continue reading here.

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