Online display ad spend to grow 70% due to social media

US online display ad expenditure is set to increase 70% from $42 billion in 2017 to $72 billion by 2021 boosted by social media spending. The forecast is part of the Online Display Advertising report by Forrester.

In line with an increase in mobile adoption, Forrester also predicts that social advertising spend will reach $40 billion by 2021. Platforms such as Facebook, Instagram and Snap are predicted to snap up more cash from advertisers looking to get into mobile social.

Despite Facebook still taking the lion share of mobile ad spend, Forrester predicts that Snap Inc and similar platforms will grab some of these ad dollars. This is driven by social media platforms increasingly focusing on self-serve advertising options.

The Facebook-Google duopoly will further be disrupted by Amazon, which is likely to surpass $2.5 billion in advertising revenue by 2021.

However, despite concerns over certain contents and advertising practices on Facebook, the social network is still seen as a platform that can measure ad deliverability, viewability and other key performance metrics more accurately than other ad channels.

Samantha Merlivat, Forrester research analyst, explained:

“We’re seeing more money spent in environments where there’s the perception that these issues are better monitored. I would say a lot of advertisers still see desktop display as the foundation of everything they do and mobile as an add-on, but it’s becoming clear that going forward, advertisers need to flip that around and really be mobile-first in the way they plan digital display.”

Forrester also predicts that mobile marketers will be investing more heavily in mobile video and in-app formats in 2019.