Advertisers are expected to pay about $10.4 billion for digital ads in 2020, up from about $5.7 billion in 2019.
The new year will bring a major change in advertising tactics, with publishers looking to use the new platforms to boost sales and drive users to their website.
Read more about digital ads.
The biggest revenue generators will be brands and advertisers, but many other online companies will also be impacted, with more than 400 of the top 500 companies estimated to spend $2.3 billion on digital ads this year, according to market research firm Market Pulse.
Read more about ad revenue trends.
“The changes in digital advertising will have a profound impact on online commerce and the way we spend money online,” says Scott Fosburgh, digital media specialist for FWD.us, an organization that advocates for digital innovation.
“Advertisers need to understand that their ad revenue is going to be a big part of their business.
The industry has to be ready to move from a business that can afford to invest in content to one that is not.”
Digital advertising is an increasingly important revenue stream for companies looking to grow.
More than 1.5 billion U.S. consumers spend more than $2 billion a year on online ads, according the Pew Research Center.
That’s an increase of 7.3 percent from 2016, according ToeTap’s survey.
Online ads are often cheaper than traditional forms of advertising because they don’t need to pay for the physical space.
That means companies can advertise on the web, without needing to have a physical store.
They can also have digital ad units, where content and images are digitally delivered.
The advent of video has allowed for advertisers to make a big jump in ad revenue.
In the past year, the amount of video ads on the Web increased by 25 percent, according Adweek, with ad spending soaring to $3.3 trillion in 2016.
“We’re seeing advertisers get to the point where they are spending more on video and more on social media,” says Mark Zandi, chief executive officer of Zandi & Associates.
The digital revolution is changing the way businesses work, too.
The digital landscape has seen a dramatic shift in how businesses communicate with their customers, according Mark Zaid, president of Zaid Research, a consulting firm that analyzes online data.
“You can now deliver digital content in a way that is more like physical delivery.
The delivery is easier to achieve,” he says.
“In other words, you’re delivering the content to the customer.
You don’t have to do physical delivery, you can do video delivery.”
Advertising can also change the way people shop.
People now shop online, rather than offline, and are looking to shop more frequently.
That will likely result in an increase in online sales.
But while the rise in digital sales has helped to push consumers to shop online more frequently, it’s not a sustainable trend, according Fosburg.
The average online shopper spends about $1.3 on each purchase online, according research firm ComScore.
That number will likely decrease over the next few years, Fosberg says.
“Online shopping is growing in absolute terms, but it’s declining relative to offline shopping,” he said.
“That’s not going to continue to happen in the long term.”
Companies that will be most impacted by digital ad growth are the largest, with revenues expected to double in 2020 to $2 trillion.
Amazon, Apple, Google and Facebook are expected top the list, while Netflix, Hulu and YouTube are expected drop from the top five to number three.
Other big players, such as Facebook, will continue to struggle with digital ad revenue, but will continue growing, Frosburgh says.
And it’s likely that traditional brick-and-mortar retailers will struggle to survive the digital revolution.
“Advertising is the lifeblood of many brick- and-mortars.
It’s the most important element of any business,” he added.
“And we’ve seen that the industry is resilient, and it’s going to survive.”
The ad industry is already starting to adapt.
The company that owns Hulu is looking to change its model.
Instead of buying and selling advertising time, Hulu is trying to find ways to offer ad-free viewing, which has been a major driver of online traffic.
“The Hulu model has a very different way of doing things,” says Michael Gartner, Hulu’s CEO.
“If you want to watch Hulu ad- free, Hulu doesn’t sell you ad time.
They give you ad-FREE viewing.”
Read more from the Fortune 100: