According to the latest Advertising Expenditure Forecasts March 2016 from ZenithOptimedia, mobile ad revenue will grow 128% by 2018 to account for 92% of global ad dollars. That’s a rise of $64bn in mobile ad spending.
Mobile is the main growth driver
Jonathan Barnard, Head of Forecasting, ZenithOptimedia, explains:
“Consumers are using their mobile devices to consume media in a place where they previously have never done so before, and in times and places they wouldn’t previously have access to.”
Indeed, mobile is an opportunity for brands to engage with their consumers at a lower cost as opportunities grow and inventory is being added. Whilst there are obstacles such as fraudulent traffic to be overcome, in-app advertising ensures a way to get around ad blockers since they only work in web browsers on mobile.
The report also highlights that mobile internet will reach a share of 18.7% of global ad expenditure by 2018, up from 9.2% in 2015. All other mediums, including TV, desktop, newspapers and magazines, radio, outdoor and cinema are losing share.
Mobile ad expenditure more than doubling by 2018
Overall, digital will be growing 15.7% in 2016, driven by social media (32%), online video (22.4%) and paid search (15.7%). The global ad market is set to rise 4.6%, up from 3.9% in 2015.
The report further identified the top 10 markets in terms of ad spend, with the US, China and Japan ranking at the top.
Top ten ad markets
However, Barnard adds that the Middle East and Asia are on the move. He adds:
“I would highlight Iran as being a really interesting market. It has a very large population, potential for high economic growth and recent opening of trade due to removed sanctions. Advertising is a very small portion of its total GDP, but as it grows it will take over a lot of the market.”