Mobile and internet advertising continues to grow

According to new research, in 2018 mobile advertising is set to overtake desktop and the internet will overtake television to become the largest single advertising medium.

ZenithOptimedia’s new Advertising Expenditure Forecasts research shows that mobile advertising will total US$114 billion in 2018, a substantial increase from US$50 billion in 2015. The research firm expects Mobile advertising, which is responsible for almost all of the growth in global ad spend, to grow at an average rate of 32% a year between 2015 and 2018.

As ad spend migrates from desktop to mobile, ZenithOptimedia predicts desktop internet advertising to peak at US$114 billion in 2017, before falling back slightly to US$113 billion in 2018.

Internet to overtake television in 2018

Today, television marks the dominant advertising medium, with a 38% share of total ad spend in 2015. In 2018, however, ZenithOptimedia expects the internet to overtake television to become the largest single advertising medium.

However, one of the reasons for television’s loss of share is the rapid growth of paid search, which is essentially a direct response channel (together with classified), while television is the pre-eminent brand awareness channel – and this is expected to endure.

The research believes television will account for 44.7% of display expenditure (i.e. excluding internet classified and paid search) in 2015, and 42.9% in 2018.

Smart TVs changing the game

Smart TVs, which alongside offering more flexibility to viewers also collect more data on viewing habits and preferences, in a bid to increase value for advertisers. Last month, TV maker Vizio was criticised for automatically turning on its Smart Interactivity feature, meaning users had to physically opt out of sharing information with third parties.

 

Edited from sources by Cecilia Rehn.

Sources: ZenithOptimedia Network World

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