Estimates from eMarketer calculate B2B companies spent $4.07 billion on online advertising in 2017. In 2018, the spending is expected to increase 13 percent to 4.6 billion. Across the board, companies are pouring more money into technologies that allow them to place advertisements where their customers are. While traditional media still has a place in advertising, consumers have transitioned an increasing portion on their lives online and businesses have followed.
Many retail businesses experienced growing pains due to the market's shift towards e-commerce and the omnichannel shopping experience. Some businesses are facing massive closures and potential bankruptcy. Many others, however, thrived through 2017 and can expect success in the months ahead.
Consumers have made their mobile devices a more integral part of their daily lives, using them at higher frequencies for a wider variety of tasks. Plenty of data has been collected which established a connection between higher smartphone usage across the globe and the proliferation of m-commerce. As a side effect, consumers have taken other services and shown an interest in taking them mobile.
The mobile applications market recently recorded one of their largest holiday seasons in history. On Christmas Day alone, consumers globally spent $196 million on apps, in-app purchases and subscriptions in the Google Play and iTunes stores combined, according to Sensor Data. While the report excludes Android information from China, the data represents a 12.3 percent increase from the year before.
Google and Facebook have long held a dominant share in the online advertising market. The two companies have some of the largest user bases in the world. Google now processes over 2 trillion searches per year and Facebook passed 2 billion monthly active users earlier in 2017, according to Statista.
With the holiday season having concluded, market analysts can now look at the data as a whole in order to make predictions for both the next holiday season as well as e-commerce in 2018. While pre-Christmas sales surpassed expectations, both physical retail locations and e-commerce sites saw increases in traffic and revenue. According to data from Salesforce, Dec. 26 saw a 19 percent increase in traffic, 5 percent higher than the year before.
Amazon appeared in headlines all throughout 2017. Most noteworthy, however, was their $13.7 billion acquisition of Whole Foods in June. For months afterwards, market analysts discussed what the acquisition meant for Amazon, its competitors and the future of e-commerce as a whole.
Ulta Beauty's investment in their e-commerce platform paid off. Earlier this year, it was reported the beauty salon company's total traffic to their website increased by 74 percent with a 104 percent increase in mobile traffic alone. The result: Ulta Beauty's online sales for Q3 rose by 62.8 percent from the same point last year. Online accounted for nearly 9 percent of all sales for the quarter.
From the formation of stricter guidelines to a growing concern over fraudulent practices, online advertising went through a year-long adjustment period. Alongside record-breaking growth, the platform sought to settle into a sustainable format which delivers on promises to advertisers and customers alike. Estimates from eMarketer predict advertisers in the U.S. will spend almost $48 billion on online advertisements.
The 2017 holiday shopping season has continued to break records. Consumers began their shopping earlier than ever aided by the growing retailer trend of the pre-Black Friday sale. Despite it's reputation as a retail-orientated shopping holiday, Black Friday brought in historic e-commerce sales.