Mobile advertising spend is predicted to increase at a compound annual growth rate of 15.9% until 2022, according to new research from Forrester . The research firm predicts that expenditure will rise from €19.3 billion in 2017 to €40.3 billion in 2022. By then, it will account for 70% of digital advertising spend.
The forecast spans seven countries including the UK, France, Germany, the Netherlands, Italy, Spain, and Sweden.
It further highlights that search continues to have a significant lead in mobile ad spend within the EU, and now accounts for roughly half of mobile ad expenditure in 2017.
However, its share is expected to decline slightly through to 2022. Nevertheless, search continues to be a dominant mobile ad channel with spending growing at a double-digit CAGR driven by rising ad click volumes and cost per click.
“As the segment with the largest share of ad revenue that is mobile, social has the most to gain, relatively speaking, from the continued evolution of mobile computing,” explained Brandon Verblow, a Forrester analyst. “With improved device performance, increasing screen sizes, and cheaper cellular connectivity, mobile will deliver better experiences to consumers and continue to gain digital time share. Mobile will also benefit from emerging technologies like virtual reality and augmented reality which will allow for deeper engagement with mobile devices.”
Meanwhile, mobile social ad spend is expected to grow as social and mobile continue to become more interlinked. Indeed, Forrester expects that mobile will make up the majority of social ad expenditure by 2022, with video as a key format driving the growth.