In 2019, online ad spend all over the world is expected to increase by 0.7% from the expected 4% that was predicted in Zenith’s forecasts in 2018. Last year, online advertising went up 16% to get to $246 billion. This amount was 12% more than the estimates for the year. It is projected that by 2021, the amount will be $329 billion, which is almost half of the worldwide ad spend.
Social media and online video are driving growth. It is expected that online video and social media will grow 19% and 14% respectively by 2021. Digital display, which covers social, and video will increase 13% every year with classified ads and paid search rising 7%. Between 2018 and 2021, out-of-home advertising is expected to grow by $4.4 billion to make the sector the fastest-growing ad medium owing to increase in programmatic sales and digital screens.
Leading in the global ad expenditure is the U.S, contributing 37% of the total. Zenith expects that the country’s ad spend will grow to 5% up from 2.9% by the end of the year. Russia and France, on the other hand, are expected to increase from 7.1% to 8.2% and 3.7% to 4.7% respectively. Small businesses have contributed a large part to the growth in ad spend since Facebook and Google made it possible to self-serve on ads to target a customer base accurately.
The report by the Zenith emphasizes how marketers are investing in digital ad formats especially online video and social media. The report also draws attention to the contribution of challenger brands and small businesses and how they are also competing to get the attention of the consumer. According to the report, small businesses may have to change their strategies if they will stand a chance.
Digital challengers, on the other hand, have to combine traditional and digital formats if they raise awareness for their brands. Social video makes it possible to reach more relevant people, but one will have to consider people’s short attention spans to reach them. One way to factor in attention span may be to create short exposure content and to personalize it, according to Zenith’s report. Brands that are native to digital are helping to increase ad spend on TV with linear TV, for instance, expected to grow 0.7% by 2021.
Zenith also shines a light on the increase in OOH (out-of-home) advertising which is performing better than was expected. This fact echoes with recent data released by the American Out of Home Advertising Association which showed a growth of 4.5% in 2018. Before then, the format had only ever reached 3%. Digital OOH contributed 29% of all the ad spend.
The forecast is another brick in a robust landscape. The IAB called 2018 the ‘landmark year’ for digital ads, spearheaded by direct-to-consumer sales and OOH. Marketers invested $75.8 billion by 2018 September which was 22% above what was spend in the same period of 2017.