How digital ad spending accelerates ecommerce growth, why that is good for ‘traditional’ media

There were a number of pieces of intelligence about the media economy unveiled during WPP’s quarterly presentation to investors last week. You can find them on pages 39 and 43 if you want to download the 130-page tome.

But one key point stood out – why digital ad spending is accelerating an expansion of the global e-commerce marketplace.

As disruptive as digital advertising’s expansion has been for measuring the industry’s economic growth, GroupM Futures Director Adam Smith presented a detailed analysis showing its efficiency for stimulating global commerce – by a margin of two-to-one.

“Digital advertising is currently 8% of the volume of e-commerce,” Smith said, adding that GroupM’s current estimate is that will correlate to a 15% rise in e-commerce, or about 10% of global retail sales.

That translates into real money, Smith said, noting that the “average Internet retail shopper in 2018 will spend just under $1,000,” representing a 10% increase in spending over 2017.

Much of that growth is coming from newer, nimbler online brands that are using the Internet to launch new products and services offered direct to consumers.

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