Mobile advertising spend represents 23% of all ad expenditure globally in 2017

Mobile advertising expenditure is predicted to reach $98.3 billion in 2017, which represents nearly a quarter (23%) of all ad expenditure worldwide. That’s according to new research by WARC.

This phenomenal growth makes mobile the second largest advertising medium in terms of expenditure, jumping ahead of desktop in 2017.

The Global Ad Trends report highlights that mobile advertising spend will note a 35.2% year-on-year dollar growth this year. Half (51%) of mobile ad spend is being attributed to search, followed by display (45%) and other spend (4%).

Marketers within 12 key markets measured (Australia, Brazil, Canada, China, France, Germany, India, Italy, Japan, Russia, the UK and USA) expect to spend $45.2 billion on mobile display in 2017. Together, they account for two-thirds of global ad trade value.

WARC also pointed out a correlation between Facebook’s mobile advertising increases and mobile display growth in the markets. Indeed, mobile is now accounting for 88% of Facebook’s advertising revenue. However, growth is calming down slightly at 40% in 2017 compared to 70% in 2016.

In a separate report, WARC also revealed that the Facebook-Google duopoly accounts for 61% of all online ad expenditure, up from 58% in 2016. In combination, they are generating revenue of $133 billion which equates to a quarter of all global ad spend in 2017.

James McDonald, Editor at WARC, said:

“Daily mobile time has more than doubled over the last five years – from 1hr 17mins in 2012 to 3hrs 2mins in 2017 – and our research demonstrates how marketers are looking to capitalise on this by investing more in social, video and native mobile formats over the coming years. Much of this influx has been to the benefit of the duopoly, Facebook and Google, where one in four dollars of global advertising is now spent.”

Interestingly, the report also points to research from the University of Adelaide which found that online video viewability standards were too low, missing the opportunity to influence audiences. Current video viewability standards propose that at least 50% of pixels should be onscreen for just two seconds to impact and become a chargeable view. However, the authors concluded that this was far too low.