Mobile advertising expenditure to reach $121.1 billion in 2018


Worldwide advertising spend is predicted to grow 3.6% in 2018, up from 3.1% in 2017. According to new research by the Dentsu Aegis Network based on data across 59 markets, digital media is set to increase 12.6% to $220.3 billion this year. This represents a slow-down from 17% in 2017.
Meanwhile, mobile ad spending is set to reach $121.1 billion in 2018. Desktop continues a downward trajectory at -1.5% since 2016 compared to 8.2% in mobile gains since 2016.
In terms of advertising format, paid search leads digital ad spending with a 40% share. Voice-activated devices in particular are helping spur this growth.
Video and social are also boosting digital advertising growth at 24.5% and 23.5% respectively. These formats are largely driven by greater mobile device penetration.
The report also predicts programmatic ad spend to increase 23%.

“The latest ad spend forecasts show a market in transformation, but not recession,” explained Jerry Buhlmann, CEO of Dentsu Aegis Network. “The challenge for brands is to navigate an uneven economic outlook alongside a rapidly evolving tech & innovation landscape. In many markets, disruptive innovation – from mobile, voice activation and new ad tech players – is still providing new sources of growth and we forecast this trend will continue into 2018.”

He added:

“Succeeding in this environment requires global consistency through appropriate platforms and systems, while also the flexibility and agility to work with a wider ecosystem of tech-enabled solutions. It demands a relentless focus on understanding the consumer, using data to reach real people, driving relevance, addressability and business growth.”

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