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The retail industry is poised to expand digital media spend by 10% annually

Written by Ironpaper | Sep 8, 2013 12:20:59 PM

The retail industry is poised to spend $9.42 billion this year on paid digital media, according to a new report by eMarketer.

By 2017, that digital media spend is expected to grow to $13.5 billion. This means the retail industry's digital media spend will grow at a 10.5 percent compound annual growth rate by 2017. The retail industry is a leader in digital media and advertising spend, and all signs indicate that the industry will continue to keep it's lead in the next four years. The report explores spend for online and multichannel retailers, catalog retailers and restaurants. Branding campaigns for retail is growing with video, social display, guided shopping and dynamic ad units gaining in popularity.

If we breakdown the total spend, the retail industry will spend 64.6% of paid digital budgets on direct response and 35.4% on brand-focused campaigns. Direct-response advertising are campaigns focused on more “immediate actions" or transactions.