In 2019, global ad spend is expected to rise 4.7% to get to $623 billion according to Zenith Media’s forecasts. The latest estimates suggest that the figures upgrade from the 4.0% made last year.
As it is, internet ad spend makes 39% of the total expenditure, and it is expected to grow to 60% by 2021.
Meanwhile, display and other similar formats like online video and banners are expected to increase by 13% by 2021. This growth will be driven by programmatic.
On the other hand, online video will grow 19% by 2021, a growth that will owe to the increase in mobile devices and better viewing experiences. At the same time, social media will boost 14% because more people will be checking their notifications and statuses using their phones.
Classified formats and paid search have been falling by an average of 7% every year. It is interesting that growth in online ads is driven by local businesses that use programmatic and targeting options offered by Facebook and Google.
At the same time, big brands are using digital tech alongside traditional media to widen their reach.
‘Brands with niche markets still need to advertise at scale to get new customers,’ said the head of global strategy at Zenith, Ben Lukawski. ‘As people communicate more online, brands have a hard time making themselves distinctive via short and frequent exposure instead of occasional but long exposures that were common with traditional media.’
The U.S now makes 37% of the ad revenues collected all over the world, making for the most significant contributor. China comes second at $16 billion, followed by India that contributes $5 billion.