As we close out 2016 and welcome 2017, it is once again time for predictions season in the digital marketing world, and our “2017 Digital Marketing Predictions You Should Know” resource guide is packed with the important insights that should be top of mind. We have scoured primary data and resources to provide you with a collection of key facts that will hopefully help you and your organization optimize your business model for a success.

1. 2017 Digital Marketing Stats You Should Know

2. 2INSERT DECK TITLEDIGITAL MARKETING STATSCOPYRIGHT © 2017 KATANA. ALL RIGHTS RESERVED.
As we close out 2016 and welcome 2017, it is once again ?me for predic?ons season in the digital marke?ng world, and our “2017 Digital
Marke?ng Stats You Should Know” resource guide is packed with the important insights that should be top of mind. We have scoured
primary data and resources to provide you with a collec?on of key facts that will hopefully help you and your organiza?on op?mize your
business model for a success.
Digital marketers have become all too accustomed with the con?nuously changing behavior of users. Couple that with technical innova?ons,
such as the predicted consumer adop?on of virtual reality, marketers who stagnate will find themselves diminished and behind the curve.
The United States, as the leading global economy, is predicted to experience significant growth due to the expected preferen?al business
policies that will be implemented by the new administra?on. Further, we are currently amidst the highest CEO confidence levels since the
depression of 2008, and marketers are projected to increase spending by over 14% year over year. The amalgama?on of these three figures
warrants an increase in business revenue and ad spend.
As a final note, many of the marke?ng spend increases will be aVributed to technology and automa?on. Ar?ficial intelligence (AI) will be
undoubtedly the poster child of 2017, and marketers can expect to see some variances or itera?ons of AI across all marke?ng ini?a?ves to
come.
Con?nue reading to learn more about how automa?on, technology and ar?ficial intelligence will be the formidable drivers of ad revenue and
growth in the 2017 digital space, influencing ad spend across social pla[orms, paid search, display, TV, OTT, video, radio and other digital
outlets.
We wish you a happy and healthy 2017, full of success and digital marke?ng innova?ons!
Melissa Lopez, CEO
Katana

3. Global advertising revenues will reach $510.7 billion in 2017, a 3.6%
growth from 2016’s $493 billion.
Source: www.mediapost.com

4. 31.7
36.6
42.8
49.5
59.6
68.1
75.6
88.1
93.5
Digital Ad Spend Growth in the United States
Revenue in Billions
Source: PwC Global Entertainment and Media Outlook, 2016
2011 2012 2013 2014 2015 2016E 2017E 2018E 2019E
US Digital ad spend growth is
projected to increase 11.01%
YoY from $68.1 billion in 2016 to
$75.6 billion in 2017.
4INSERT DECK TITLEDIGITAL MARKETING STATSCOPYRIGHT © 2017 KATANA. ALL RIGHTS RESERVED.

5. $68.88
49.5
US TV* vs. Digital** Ad Spend 2015-2020
Revenue in Billions
Source: www.emarketer.com
2015 2016 2017 2018 2019 2020
In 2017, digital adver?sing is
predicted to aggregate $72.72
billion ad dollars while TV is
expected to reach $82.86 billion.
5INSERT DECK TITLEDIGITAL MARKETING STATSCOPYRIGHT © 2017 KATANA. ALL RIGHTS RESERVED.
$59.82
$71.29
$72.09
$72.72
$82.86
$74.53
$93.18
$76.02
$103.39
$77.93
$113.18
TV* Digital**
NOTE: *Broadcast TV (network, syndicaHon and spot) and cable TV; **Various forms of
adverHsing formats that is served on desktop, laptops, mobile phones, tablets or other
connected devices

6. TV ad spend is forecasted to grow by an estimated 2% each year until
2020. In 2020, TV ad spending’s share will fall below one-third of the total
media ad spend for the first time in US history.
Source: www.emarketer.com

7. 16.3 16.5 16.7 17.2
17.4 17.7
17.9 18.0 18.2
Radio Ad Spend in the United States 2011-2020
Revenue in Billions
2011 2012 2013 2014 2015 2016E 2017E 2018E 2019E
Radio adverIsing spend
will reach $17.87 million
in 2017, experiencing
1.07% growth YoY.
7INSERT DECK TITLEDIGITAL MARKETING STATSCOPYRIGHT © 2017 KATANA. ALL RIGHTS RESERVED.
2020E
18.3
SpendinginbillionUSdollars
Source: PwC Global Entertainment and Media Outlook, 2016

8. 8INSERT DECK TITLEDIGITAL MARKETING STATSCOPYRIGHT © 2017 KATANA. ALL RIGHTS RESERVED.
Total Media Ad Spending Share in the United States 2014-2020
% of Total
2014 2015 2016E 2017E 2018E 2019E 2020E
TV*
Digital
— Mobile
Print
— Newspapers**
— Magazines**
Radio***
Out-of-home
Directories**
Source: www.emarketer.com, March 2016
NOTE: *excludes digital; **print only, excludes digital;*** excludes off-air radio and digital
39.1%
28.3%
10.9%
17.4%
9.1%
8.3%
8.4%
4.0%
2.8%
37.7%
32.6%
17.3%
15.4%
8.0%
7.4%
7.8%
4.0%
2.5%
36.8%
35.8%
22.7%
13.9%
7.2%%
6.8%
7.4%
3.9%
2.2%
35.8%
38.4%
26.2%
12.9%
6.6%
6.4%
7.0%
3.8%
2.0%
34.8%
40.8%
28.8%
12.2%
6.1%
6.1%
6.7%
3.7%
1.9%
33.7%
43.1%
31.0%
11.6%
5.7%
5.8%
6.4%
3.5%
1.8%
32.9%
44.9%
32.9%
11.1%
5.5%
5.6%
6.1%
3.4%
1.6%
Digital is the frontrunner of all media
spend, accoun?ng for 38.4% of total
media spend in comparison to print’s
12.9% ad spend.

9. Mobile will continue to accelerate overall digital ad spend, growing
38.0% in 2016, accounting for $43.60 billion of total ad spend. Mobile
ad spend represented 63.4 of total digital ad spend in the United States.
Source: www.emarketer.com

10. In 2016, mobile users spent 3:08 non-voice
minutes interac?ng with their devices using
radio, social networks and video. In 2017 mobile
users will increase non-voice minutes by 3.24%
to 3:18, with the majority of Ime spent
listening to mobile radio plaWorms.
On desktop and laptops, ad blocking will increase
21.99%, from 63.2 million in 2016 to 77.1 million
in 2017.
Furthermore, ad blocking on smartphones will
increase 43.48% from 20.7 million in 2016 to
29.7 million in 2017.
Na?ve ads are taking over digital adver?sing,
largely aVributed to social media pla[orms
like Facebook. In 2017, naIve display is
projected to reach $20.9 billion, an increase
of 24.4% from $16.8 billion in 2016.
Monthly digital video viewers will increase 5.3%
globally, increasing from 695.5 million viewers in
2016 to 732.4 million viewers in 2017.
Source: www.emarketer.com
Source: www.emarketer.com
Source: www.emarketer.com
Source: www.businessinsider.com

11. Globally, net media advertising revenues increased by 5.7% in 2016 as the
result of digital ad sales augmenting by 17%. Meanwhile, offline media ad sales, including
channels such as linear TV, print, radio and out-of-home flatlined at 0.3% growth.
Source: www.magnaglobal.com
11INSERT DECK TITLEDIGITAL MARKETING STATSCOPYRIGHT © 2017 KATANA. ALL RIGHTS RESERVED.

12. 12INSERT DECK TITLEDIGITAL MARKETING STATSCOPYRIGHT © 2017 KATANA. ALL RIGHTS RESERVED.
Global Media Ad Spend 2016
Revenue in Billions
2016 Size ($B)
Grand Total (Global, All Media)
US
Source: www.magnaglobal.com
493
180
191
100
5.7%
6.9%
6.7%
3.9%
27
12
12
4
100%
37%
39%
20%
3.6%
1.7%
1.8%
2.4%
In 2016, digital ad sales experienced
a growth of 16.9% in comparison to
offline ad sales 0.3% growth.
Furthermore, North America
(specifically the United States)
accounted for the majority of global
media spend and growth. North
America was responsible for 39% of
the total share, increasing 6.9%.
NOTE: *Includes linear ad sales on legacy plaWorms. Excludes publishers’ ad sales on
digital plaWorms; **Includes ad sales across all digital plaWorms; ***Includes ad sales
from all digital formats on mobile smartphones and tablets
Global Media AdverIsing Revenue 2016 Growth (%) 2016 Growth (B) Share of Total 2017 Growth
North America
Western Europe
Central & Eastern Europe
La?n America
Asia Pacific
16
23
148
6.0%
5.5%
5.3%
1
1
7
3%
5%
30%
5.6%
6.2%
5.4%
Digital Ad Sales** 178 16.9% 26 36% 13.3%
Search and Social** 123
80
23.5%
47.5%
23
26
25%
16%
17.0%
31.4%Mobile***
Offline Ad Sales*
Linear TV*
Print*
Radio*
OOH
315 0.3% 1 64% -0.9%
186
69
3.8%
-9.1%
7
-7
38%
14%
1.0%
29
31
-0.55%
3.3%
-0
1
6%
6%
-1.0%
2.9%
-0.9%

13. 13INSERT DECK TITLEDIGITAL MARKETING STATSCOPYRIGHT © 2017 KATANA. ALL RIGHTS RESERVED.
TV* vs. Digital Video** Ad Spend 2014-2020
Revenue in Billions and % Change
2014 2015 2016E 2017E 2018E 2019E 2020E
TV*
Digital Video
— % Change
Source: www.emarketer.com
$68.54
3.3%
$5.24
40.8%
$68.88
0.5%
$7.66
46.0%
$70.60
2.5%
$9.84
28.5%
$72.01
2.0%
$11.72
19.2%
$73.81
2.5%
$13.39
14.2%
$75.29
2.0%
$15.15
13.1%
$77.17
2.5%
$16.69
10.2%
Digital video is projected to
increase 19.2% — from $9.84
billion ad spend in 2016 to $11.72
billion ad spend in 2017 YoY.
— % Change
NOTE: *Broadcast TV (network, syndicaHon and spot) and cable TV; **Various forms of
adverHsing formats that is served on desktop, laptops, mobile phones, tablets or other
connected devices; includes ads that are served before, during or aYer digital video
content in a video device player

14. Social media is the largest contributor to digital budgets and the fastest
growing format. Social media advertising sales (including video) increased by
46% globally in 2016 to $33 billion. In 2017, advertising sales are
expected to grow at a steady rate of 29%.
Source: www.magnaglobal.com

15. In 2016, Facebook increased revenue by 55%
YoY to $24.7 billion, and its net income
increased 165% to $7.5 billion.
In 2017, Facebook ad revenue is expected to
grow 36% to $33.76 billion.
eMarketer projects that Google dominated the
global paid search marke?ng in 2016, bringing in
$57.8 billion in total digital ad revenue, and is
projected to bring $62.15 billion in revenue in
2017.
Google’s net ad revenue is projected to grow
7.5% in 2017.
TwiVer was predicted to generate nearly 90% of
its revenues from mobile devices, worldwide.
In 2017, Twiber is predicted to grow 24.9%
from $2.61 billion in ad revenue to $3.26 billion.
Snapchat’s ad revenue is projected to
capture $935.46 million in 2017, accoun?ng
for 2% of total social network ad spend.
YoY from 2016 to 2016, Snapchat’s ad
revenue is forecasted to grow 155.1%.
Source: www.emarketer.com
Source: www.emarketer.com
Source: www.emarketer.com
Source: www.emarketer.com

16. Cord-cutters will increase 15.4% from 5.5 million in 2016
to 6.4 million in 2017.
Source: www.emarketer.com

17. STAY IN TOUCH!
Contact:
letstalk@katanaconnect.com
225 Broadway Suite 430, San Diego, CA 92101