Travel Industry Spends 70% of ad Money on Mobile


  • Next year, digital media buying by the travel industry is expected to overtake CPG brands. Consumer packaged goods brands are consolidating their ad budgets. Travel related businesses in the U.S will spend $13 billion in 2020 on digital media. This will be $0.2 billion more than CPG media, according to eMarketer.
  • Companies that offer financial services will spend $18.3 billion on digital ads, exceeding the automotive industry by $0.1 billion. Retail will remain the biggest spender on digital ads, gaining by 19% to get to 28.3 billion. In the U.S, retailers contribute the most to mobile ad spend and top in digital video ads going by the report.
  • Mobile platforms have caused a boost in digital ad spending for financial and travel companies. Travel companies spend 70% of their budgets on mobile ads and contribute the most among all the industries. Financial services come in a close second.


Digital ad growth from the travel industry is notable as airlines, destinations and hotels vie to get the attention of younger adults who consume media through their phones. Younger adults also spend more than older generations on travel experiences to share on social media. 34% of adults in the U.S between 18 and 34 years said they could spend over $5 000 on vacations, which was the highest amount recorded for any age group, according to a survey by Travelport. Google and Facebook are looking to make more money from the travel industry by introducing more features to compete with travel agencies like Priceline and Expedia.

At the same time, CPG companies are working to be more efficient with how they spend their media money. For years, Procter & Gamble was the biggest advertiser in the world. In 2017, the company cut $100 million from its spending on digital media, a move which did not affect business. The CPG giant wanted to remove ad placements that were displayed next to objectionable UGC and on unsafe sites. The company is seeing strong growth in sales as it streamlines its operations in marketing.

The financial services industry has been expanding in ad spending because the industry is going after young adults to help them manage money. Banks are facing stiff competition from small businesses like PayPal, Venmo and Credit Karma, which are becoming popular with millennials. Mobile banking means that consumers continuously check in with their banks, according to App Annie. There is a noteworthy change in the way consumers behave now that they do not have to go to the ATM or the bank to get money to spend in their day to day activities.

In the automotive industry, sales slumped by 2.4% in the first half of the year. According to eMarketer’s report, the industry had different spending priorities. ‘Automakers are busy thinking about new technologies, strict emission standards and shifts in customer behaviour,’ said Oscar Orozco, an eMarketer analyst. ‘With the changing priorities, leading brands focus on research and development.’


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