Top 5 Media Landscape Insights- September

Stay on top of today’s constantly changing media environment with DirectAvenue’s Top 5 Insights. We give you specific network updates and emerging media trends in a digestible format.

September 1, 2024

1. Digital makes up over three-quarters of total ad spend in the US- Total media ad spending in the US is expected to hit $389.49 billion this year. Of that amount, more than three-quarters (77.7%) will be allocated to digital platforms such as mobile, desktop/laptop, and connected TV (CTV). The retail sector is at the forefront of digital ad expenditure, with a projected $88.13 billion this year. It is followed by consumer packaged goods (CPG) with $48.79 billion, and financial services with $33.81 billion.
2. Get ready to advertise this holiday season- US holiday sales are set to hit a record $1.353 trillion this year. With the holiday season beginning earlier each year, marketers need to start preparing now for increased shopping activity in September and October. Half (50%) of US holiday shoppers will start shopping before Thanksgiving this year. This year, mobile ecommerce share will increase to 52.7% and mcommerce holiday season sales will be up 13.4% YoY, reaching a total of $140.65 billion. Advertisers must recognize the impact of the election. Over $12 billion is forecasted to go to political ads in the US this election cycle, and most of that spend going to TV.
3. Roku is to boost video ad revenue from its new DSP deals- The recent addition of more third-party advertising demand-side platforms (DSPs) is expected to significantly increase advertising revenue for Roku, the streaming video platform distributor. Michael Morris, a media analyst at Guggenheim, projected that Roku’s video advertising revenue will grow by 17% to $2.1 billion this year due to new expanded DSP selling platform deals, with a further 17% increase expected in 2025, reaching $2.5 billion.
4. Amazon’s ad business surges amid ecommerce slowdown- As ecommerce growth slows, Amazon is focusing on advertising and cloud computing to enhance its profits. In Q2 2024, Amazon’s advertising revenue increased by 20% year-over-year, closely aligning with last year’s growth rate, as the company continues to expand its revenue sources beyond ecommerce. And what’s next? Amazon is making significant investments in content rights, such as its $1.8 billion annual deal with the NBA, to broaden its advertising reach. Starting in the 2025-26 season, the company will begin streaming NBA games on Prime Video.
5.  3 new ad formats from Disney, YouTube, and Instacart- Disney’s new shoppable ads with QR codes and product carousels simplify mobile purchases. Ad-supported Disney+ and Hulu tiers will increase by $2 in October. Instacart aims to boost its retail media share from 2.8% to 5%. YouTube is testing non-intrusive livestream ads to reduce skips and enhance engagement.