Retail industry increases spend on digital advertising

New figures from eMarketer suggest that the US retail industry will increase its spending on digital advertising in response to growing e-commerce sale and time spent by consumers on digital channels. US retailers are expected to increase digital advertising budgets by around 15.7% to $9.5 billion by the end of the year.

Much of the increased online spending will be targeting holiday shoppers as a large portion of retail revenues are accounted for in the last few months of the year. Around 23.5% of all US retail e-commerce transactions will take place in November-December and is expected to total around $61.8 billion. It is expected that e-commerce sales will increase by 16.4% to $262.3 billion this year.

The retail industry spends more on digital advertising than any other industry. As of this year it is estimated that the retail industry will have a 22.3% share of the digital advertising spend in the US. In the coming years this figure will most likely drop slighting as the overall market is growing faster than the retail industry.

Much of the growing spend on digital advertising from retailers goes on mobile advertising.