Mobile advertising sales are expected to grow by 13% in 2018 to $237 billion, representing a slight slow-down of growth compared to 17% in 2017. That’s according to the latest forecast from Magna. Meanwhile, offline ad sales are predicted to drop by 0.5% to $298 billion.
The report also suggests that within digital advertising, the majority of ad sales (55%) are now generated by mobile device impressions and mobile ad sales grew 39% in 2017. They are expected to increase another 27% in 2018 reaching 62% of all digital ad sales.
In particular, search and social formats are boosting digital ad growth, representing 70% of digital media spend. Despite reports from Facebook that there could be a slow down of social media ad sales, the format continues to perform exceptionally strong.
Social media ad sales jumped 39% during the third quarter 2017, with video ad format sales more than doubling this year to reach $4.9 billion.
Mobile video (+52%), social (+43%) and search (+38%) are leading drivers of digital media.
The report also highlights that desktop-based impressions are shrinking across most markets. Due to a higher penetration of smartphones and mobile devices, mobile advertising is higher in developing markets as well: 59% of digital advertising by 2018 compared to 54% in mature markets.
The share of the format is highest for social media and continues to grow with 85% of social media ad sales predicted to be mobile-centric by the end of the year.
Meanwhile, search on mobile continues to be an attractive format because of ongoing product developments such as “customer match” and “similar audiences” from both Google and Alibaba. Search ads are also more easily connected to customer demographics and behaviour which makes them particularly enticing for mCommerce businesses and brands.
Although desktop video is still growing, online video spending is predominantly driven by mobile with mobile’s share of video spending expected to be 52% in 2018 surpassing desktop video spend. One of the leading factors for the increase is continued improvement of mobile video performance.