Forrester lowers digital ad spending forecast

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Cambridge, Mass.—U.S. digital interactive media spending will increase from $12.7 billion this year to $28.0 billion in 2017, growing at an annual average rate of 17%, according to a forecast from Forrester Research. Despite the double-digit growth, Forrester said it is cutting its U.S. display forecast by 13% from earlier forecasts, citing the shift to less-expensive social media impressions. Forrester said the earlier forecasts are available only to its clients. This year, marketers will spend the most on rich-media ads, excluding video ($5.2 billion), followed by text ads ($3.5 billion), video ($2.9 billion) and static image ads ($1.1 billion). Forrester projects that video ad spending will make up 23% of all online display ad spending this year and increase to 33% by 2017.
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