Advertisers are set to up their spending on online ads in 2018 to 40.2% compared to 37.6% in 2017. That’s according to the latest Zenith Media report, which noted that the 4.6% growth forecast came despite fears of digital budget cuts in 2018.
Mobile advertising grew 38% in 2017, following a 47% growth in 2016. The report predicts annual growth to continue at 19% a year until 2020. Overall global mobile ad expenditure is estimated to reach $107 billion in 2017, making up 52.6% of all Internet spend and 19.8% of total ad spend.
Mobile is by far the biggest contributor to global ad spend growth and may contribute as much as $75 billion in extra ad expenditure between 2017 and 2020.
Online video and social media were forecast to increase 17% a year to 2020.
“We are observing sustained ROI from digital transformation,” explained Vittorio Bonori, Zenith’s Global Brand President. “And we are now at the forefront of a transformation as brands shift budgets along the consumer journey, benefit from powerful algorithms and advanced machine learning techniques, and invest in new e-commerce solutions. This transformation is at the heart of driving brand growth.”
Zenith Media also found that transformational digital marketing was proving effective for many advertisers. Indeed, for automotive brands there was a 89% correlation between the traffic on their website and the website climbing up an index rank. For communications brands there was a 81% correlation between index growth and revenue spent on ads.
Overall, online ads grew 13.7% in 2017 to $204 billion, accounting for 37.6% of global ad expenditure. Zenith Media predicts online advertising to exceed 40%. Meanwhile, online ads accounted for over 55% of ad spending across three markets including China, Sweden and the UK.