Mobile and wearable ad spend growing at an average 22% annually

Anne Freier

In Mobile Advertising. June 22, 2016

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Global digital ad spend on mobile, wearables and online devices will exceed $285bn by 2020, according to new research from Juniper Research. That’s up from an estimated $160bn this year. The increase is being driven by an average annual growth of 22% on mobile and wearable ad spend.
Mobile ad spend grows an average 22% per year
The Worldwide Digital Advertising: 2016-2020 also highlights that improved audience targeting can help drive higher click-through rates and increase publisher revenue despite the rising adoption of ad blockers.

Sam Barker, research author, Juniper Research, notes:

“Publishers, such as Facebook, are utilising their unprecedented audience knowledge to offer advertisers highly accurate targeting, thereby increasing the click through rates that advertisers are witnessing now.”

Publishers who offer more efficient targeting will ultimately become more popular among advertisers.
The report also found that increased ad revenues are being further driven by fast real-time bidding processes from exchanges such as Rubicon Project and Fiksu. Page load times can be reduced by streamlining the bidding process and increasing the user experience.
In 2015, mobile platform ad revenues surpassed those from online platforms, which allows publishers to tap into an opportunity to capitalise on a growing sector that, as of yet, has low adoption of mobile ad blockers.
However, ad blockers are likely to employed more and more over the coming five years as users note the benefits across their mobile devices. Juniper warned that publishers may have to contend with network-level ad blocking, which is already being tested by UK mobile operator Three.