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Retail digital ad spending to reach record levels in 2013

November 27, 2013

Bolstered by growing e-commerce sales and time spent across digital channels, the U.S. retail industry will grow its digital ad spending more rapidly this year than in 2012, according to new figures from eMarketer.

By the end of this year, eMarketer predicts, U.S. retailers will have increased digital ad budgets by 15.7 percent to $9.5 billion, following growth of 14.5 percent last year.

Much of that spending can be expected to focus on drawing holiday shoppers, as the last months of the year account for a disproportionate share of retail revenues. eMarketer predicts 23.5 percent of all U.S. retail e-commerce sales this year, for example, will take place in November and December, amounting to $61.8 billion. eMarketer estimates U.S. retail e-commerce sales will grow 16.4 percent to $262.3 billion this year.

Retailers already spend more than any other vertical industry on digital advertising, and this year's increases are expected to give the industry a 22.3 percent share of total U.S. digital ad spending-identical to last year's share. This figure is expected to fall slightly in coming years as the overall market grows slightly faster than retail.

Research suggests much of the incremental digital ad growth coming from retailers is going toward mobile advertising, particularly search, as well as select mobile display venues with large audiences and strong targeting, like Facebook and Twitter.

Read more about retail marketing.