ZenithOptimedia, the communications and media buying agency, recently published research which shows that the internet will be the largest advertising medium across 12 key markets by 2017, representing 28% of global adspend. The Advertising Expenditure Forecasts has identified mobile advertising as a key driver of this growth. Mobile global adspend is forecast to grow from 5.1% to 12.9% between 2014 and 2017. Desktop will hold steady, with most other mediums losing share to mobile.
Mobile internet ad spending is to grow to 12.9% in 2017
Steve King, CEO, ZenithOptimedia, says:
“The Internet is quickly establishing itself as the dominant advertising medium, and on current trends will overtake television by the end of the decade. However, this refers only to traditional television viewed on TV sets. The amount of time viewers spend watching online video on their laptops, tablets and smartphones is increasing rapidly, and advertisers are shifting their budgets online to follow them. The spread of internet devices and new advertising technology will give advertisers new opportunities to communicate with and learn from consumers, and to do so more effectively than ever before.”
Mobile is the strongest driver of global adspend and will contribute 70% of all global adspend growth between 2014 and 2017. Desktop and TV follow at 20% each, though despite television adspend to grow an average of 2% annually, its growth is likely to fall back as desktop and mobile continue to grow much faster.
Global growth of medium
Already dominant in Australia, Canada, Denmark, Netherlands, Norway, Sweden and the UK, the Internet is to become a major force in China, Finland, Germany, Ireland and New Zealand by 2017. In the UK, the internet market share is predicted to exceed 50% this year and in China by 2017. Fast-track Asia, which includes China, India, Indonesia, Malaysia, Pakistan, Philippines, Taiwan, Thailand and Vietnam is predicted to grow the fastest between 2014 and 2017 at 9.1% each year.
Regional annual adspend
In comparison, Latin America has experienced a slow-down due to local advertisers being restrained by low oil prices and export commodities. Overall the weak economy in Brazil may result in reduced ad spending.
The projected growth of the mobile internet means marketers will have to refocus their budgets and allow for a greater share to be attributed to the medium if they plan to be part of the trend.