Latest updates suggest that internet advertising spend is about to surpass TV advertising spend. According to reports, the internet, which is undisputedly the world’s fastest growing advertising medium will likely surpass the television in terms of advertising spend by 2020. Other reports also suggest that judging by the rate at which internet advertising spend is growing, it has been calculated that it will possibly surpass that of the traditional television this year.
This is not surprising as it was reported last year that internet advertising spend will likely surpass television advertising spend in 2017. The report stated that television advertising spend will only surpass that of the internet with only four percent, which is a huge improvement compared to the 11 percent difference in 2016. Interestingly, the report noted that television advertising spend is expected to drastically drop to less than one-third in the year 2020.
The report was based on the prediction of the Advertising Expenditure Forecasts of Zenith Media. The report from the forecast predicted that the internet advertising spend worldwide will grow up to 13 percent more than it did in previous years. This invariably means that in 2017, internet ad spend will reach £163bn, which is roughly equal to $205bn.
It is reported that the prediction from Zenith Media, stems from other reports and statistics, which suggest that advertisers will likely invest up to 36.8 percent of advertising spend from all advertising mediums globally in internet advertising. This is said to be an impressive improvement compared to the 34 percent in 2016.
Zenith Media’s report also went ahead to state that social media will take the biggest chunk of the internet advertising spend as it is expected to have an average growth rate of 20 percent every year. This is predicted to remain constant from 2016 to 2019 when social media advertising spends is expected to hit £43.8bn, which is roughly equivalent to $55bn. The report added that internet advertising has already surpassed total advertising spend of the traditional television in seven countries in 2014. These countries are Norway, Australia, Netherlands, Sweden, Canada, the United Kingdom and Denmark.
The report also predicted that internet advertising will most likely dominate the total ad spend in five more countries in 2017 – Germany, China, Ireland, Finland and New Zealand. According to the statistics from Zenith Media, these 12 countries put together compose of 28 percent of the total spend across all advertising mediums globally. It is reported that Zenith Media has also predicted that global advertising market will grow constantly at a rate of up to five percent every year until 2019.
However, other reports suggest that these predicted figures would likely be affected by the crises related to loss of confidence by major advertisers in Google. It is also reported that some advertisers have refused to continue to place their ads on Youtube due to issues relating to brand safety and sometimes ad misplacement. But it is believed that Google and other affected networks are working actively to resolve issues and regain the confidence and trust of their customers.
It is reported that even with the crises, Zenith Media’s president, Vittorio Bonori is still confident of the internet advertising spend will surpass that of television by 2020.
“Internet advertising has contributed all of the growth in global ad spend since the beginning of the decade, and has stimulated much of the innovation we’ve seen in the market,” Bonori says. He added that innovation is progressing really fast and he is confident that it will continue to enhance the growth of brands for brand owners.
Categorised in: Marketing
This post was written by Webpinas Online Solutions