Digital ads to overtake TV spend in 2018

According to the latest report from ZenithOptimedia’s  Advertising Expenditure Forecasts, advertising spend on digital could outstrip TV advertising by 2018.

Internet advertising is set to account for 34 per cent of global adspend in 2017, slightly behind television’s 35.9 per cent. The market share gap between the two media will narrow from 13.3 percentage points in 2014 to 1.9 in 2017. If this trend continues, internet advertising will overtake television in 2018. However desktop digital ad spend is forecast to lose market share for the first time this year, dropping from 19.8 per cent of global adspend in 2014 to 19.4 per cent.

By medium, mobile advertising continues to power growth in the global ad market and will account for 12.4 per cent of ad spending this year. Its share of the global ad market is expected to rise to 15 per cent in 2017. Meanwhile, print adspend continues to decline across most of the world, as it has done since 2008.

Concerns about growth in emerging markets have meant that North America, Western Europe and Japan are expected to head up global advertising spending growth in 2015 for the first time in nine years. However the status quo is expected to return in 2016, with emerging markets leading lead market growth. The report projects rising markets’ share of ad spending to increase from 37.4 per cent this year to 38.8 per cent in 2017.

Mobile is expected to remain the driver for growth across the advertising market, contributing 83 per cent of all new ad dollars between 2014 and 2017.

Display, buoyed by the advent of automated advertising via programmatic, is the fastest growing internet sub-category (up 18 per cent), spread across traditional display, online video and social media.
Traditional display (banners) is set to climb 10 per cent a year between 2014 and 2014, according to the report, compared to a 28 per cent leap in online video and 28 per cent for social media.

Paid search is another area tipped to pull in more online spend from advertisers. It’s tipped to grow 13 per cent a year to 2017, spurred by better ad formats sharper localisation of search results, and mobile ad improvements like click‐to‐ call and geo‐targeting