Mobile to Spur Ad Market Growth through 2015
Mobile accounts for a small amount of overall advertising but it’s also the format to watch. For the past several years, the entire digital category has fueled growth in the ad market. In forecasting ad spending over the next couple of years, ZenithOptimedia analysts are betting on mobile to carry the future.
The agency’s most recent forecast confirms that global ad growth should be about 3.5% this year. 2014 and 2015 look much better with expected gains of 5.1% and 5.9%, respectively. Some of the predicted growth is connected to an improving economy in the Eurozone. Analysts also believe the BRICs (Brazil, Russia, India and China) continue to thrive and drive demand for ad spending. The U.S. will remain at the top ad market with expected spending of $182.3 billion in 2015.
In 2015, online ad spending, a total of $131.6 billion, should break out as follows, globally:
- Total display $57.6 billion
- Classified $12.6 billion
- Paid Search $61.4 billion
Analysts emphasize the importance of mobile in driving ad industry growth. Last year, mobile held 1.7% of all advertising with spending of $8.3 billion. By 2015, mobile will command 6% of all ad spending, or $33.1 billion globally. The way ZenithOptimedia sees it, every traditional format – TV, newspapers, radio, magazines and out-of-home – will give up market share as online – especially mobile – surges at the global level. Mobile’s 77% growth rate will slow some in 2014 and 2015, to 56% and 48% respectively, but that level will still be much faster than desktop advertising expansion which should come in at around 10% a year.
How much are you planning to increase your mobile ad budget for next year?