Online advertising will account for 52% of global ad spend in 2021, surpassing the 50% barrier for the first time, according to Zenith’s Advertising Expenditure Forecasts, released today. A growth, in internet advertising, above 47% of the global advertising investment expected for this year, and 44% in 2018.However, the growth rate is falling rapidly as the internet advertising market matures. Advertising investment on the internet grew by 17% in 2018, but activity in the first half of 2019 leads us to forecast a growth of only 12% for the whole year. By 2021, we expect growth in internet ad spend to have fallen to 9% year-on-year. The growth rate of the internet advertising market is beginning to converge with the growth rate of the general market.The growth in advertising investment on the internet is due to the overlap of online video channels and social media, which we forecast will grow an average of 18% and 17% annually, respectively, until 2021. These channels benefit from the continuous technological improvements of smartphones, connection speed and targeted advertising and delivery, combined with strong growth in investment in content. Launched in South Korea and the US in April and is beginning to roll out in other countries, 5G technology will further enhance brand experiences on these channels by making mobile connections much faster and more responsive.Other channels are growing more slowly.
Paid Search, which accounted for 37% of internet ad spend in 2018, grew 11% that year, and we Panama Phone Number List expect its growth rate to drop to 7% in 2021. Much of the innovation in search is taking place out on voice, which is currently not monetized. Online classified advertising – ads that appear alongside other ads instead of content, such as jobs, properties, and used vehicle listings – lose out to other digital channels or free alternatives. Classified online advertising grew 9% globally in 2018, but is already starting to decline in some markets, and in 2021, we expect investment to decline 1.6% globally.
Traditional media remains the priority for most of the big brands.Much of the growth in internet ad spend comes from small local businesses spending their entire budget on platforms like Google and Facebook, which offer simple, self-managing tools to manage very targeted audiences and campaigns. The fact that a large number of small advertisers spend their entire budget online is skewing the bigger picture. The global average is made up of many small advertisers who spend their entire budget online and large advertisers who, on average, spend well under half of their budget online. Big brands are spending large amounts on internet advertising, but most still spend most of their budget on traditional media.
“The categories that have advanced the most in the use of new digital channels are technology, media, finance and professional services,” said Matt James, Global Brand President of Zenith. “Yet even so, brands continue to rely on traditional media to create great mass awareness and reinforce brand values.”A l means UNPACKING traditional face tough competition Within traditional media, print media has been in decline for some time, as online alternatives have taken away a large part of their readers and advertisers. Advertising revenue from print newspapers and magazines peaked at $ 164 billion in 2007 and will total just $ 70 billion this year. Television is also starting to decline, although not in the same way: Zenith expects traditional television advertising revenue to decline annually by up to 2021, falling from $ 184 billion in 2018 to $ 180 billion in 2021.