Mobile ad revenue to reach 49% of total Internet ad revenue by 2020
According to the latest research from PwC, internet advertising is pushing further ahead over the next five years. The Global entertainment and media outlook 2016-2020 highlights how mobile ad revenue is surging ahead and seeing the largest growth.
In 2015, mobile generated 35% of total Internet ad revenue worth $21bn. That percentage is set to reach almost 50% by 2020.
Mobile ad revenue growing fast
PwC says that whilst total Internet ad revenue is likely to surge at 11.1% CAGR to $260.4bn by 2020, ad blockers are stopping the industry from reaching its full potential. Mobile device users in particular will be likely growing more frustrated as ads are impacting their device’s loading times and data consumption.
Programmatic advertising has also experienced a surge in growth – over half of digital ads are now traded automatically in mature markets.
Internet advertising is now at a cross-junction with TV advertising, surpassing it to reach almost $300m by 2020.
Internet ad spend vs. TV ad spend
Mobile advertising is projected to grow at a CAGR of 19.6% to reach $84.8bn by 2020. However, its share of global Internet advertising will still just be 32.6% in 2020, reflecting the ubiquity of the mobile consumer’s life. Measurement and user experience on mobile advertising are two of the key areas to improve.
Mobile search is one of the key drivers, but video ads are catching up fast.
Mobile came and conquered
PwC also expects that 5G networks will significantly speed up the shift towards mobile consumption of video.
Deborah Bothun, Global and US Entertainment & Media Leader, PwC, says:
“Consumers are engaging with media increasingly on their mobile phones, and even at work. These mobile behaviors are challenging the traditional value of attention and the ability to monetize advertising dollars. There’s no one perfect metric to inform advertisers of the value they get when you consider the shifting consumer behaviors. However, the market will be hindered by consumer resistance to a poor ad experience and potential widespread adoption of ad-blocking technology.”