Mobile advertising will account for 30.5% of worldwide ad expenditure in 2020, an increase of 19.2% over 2017, according to a new ad spend forecast by Zenith.
Within just two years, mobile ad spending will be twice that of desktop, still trailing TV at $192 billion in expenditure. However, the media company predicts that mobile spend will overtake TV by 2021.
This also means that as brands are shifting their budgets towards mobile they are having to reassess their customer acquisition strategies.
Meanwhile, customers are able to recall 53% as many TV ads but 41% of mobile ads as existing customers.
In addition, the report notes that ad channels such as cinema have made notable growth of 16% in just a year, largely driven by better screen investments and franchises.
“The mobile device in our pockets is becoming the gateway to our media world, but its brand-building capabilities are still in question – simply applying old practices to new technology may not translate to brand growth,” said Vittorio Bonori, Zenith’s Global Brand President. “Having a clear understanding of how the entire ecosystem of paid, owned and earned media works together to drive return on investment is vital.”
Radio and TV ads are predicted to increase 1% per year to 2020. Out-of-home ads are forecast to reach 3% growth in a year. However, printed media ads continue to decline at an average 5% per year between 2017 to 2020.
Overall, worldwide ad expenditure is expected to jump 4.5% in 2018 following a slight revision of earlier published figures in March (4.6%). Zenith has left its 2019 and 2020 forecast unchanged at 4.2% and 4.3% of growth respectively.
When it comes to breakdown by country, the US contributes 26% to the growth in spend whilst China contributes 22% followed by India (5%) and Indonesia (4%).