Report: Brands reducing their digital advertising budgets
According to Statista, the global digital advertising expenditure is expected to reach $229.25 billion in 2017 and by 2020 it would grow to $335.5 billion. This shows positive signs for those who are into Internet advertising business.
On the other hand, Econsultancy’s Patricio Robles has compiled updates on global brands cutting their digital advertising budgets.
For example, Wall Street Journal has reduced spending on digital ads by more than $100 million in the last quarter and JPMorgan Chase has reduced the number of sites its ads appeared on from 400,000 to 5,000.
Robles says, “That means that advertisers large and small will have little choice but to get more vigilant about where their digital ad spend is going. After all, if the ROI of online ads eventually reaches parity with offline ads, advertisers will simply not be able to continue purchasing the same amount of inventory without spending significantly more money. And if they aren’t careful about where they continue to buy, and where they cut, they could see dramatic drops in ROI”.
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