Mobile advertising spending to grow to 49% of all digital spend in 2016

Anne Freier | September 14, 2016

Mobile Advertising

Carat, the global media agency, has just launched its Carat Ad Spend Report which predicts digital media spending to grow to 27.7% of the total $548.2bn global media expenditure in 2016. Digital ad spend is being driven by strong demand for mobile, video and social media.
Based on data from 59 markets in the Americas, Asia Pacific and EMEA, the study also shows that mobile still generates some of the highest spend across all media in 2016 with a year-on-year estimated increase of almost 49% this year, topping earlier predictions of 38%.
Digital media is being driven by mobile ad spend
Within Europe, the UK continues to be the number one ranking advertising market at a solid growth of 5.4% in 2016 and a projected 4.6% in 2017. This increase is driven by digital advertising growth, which accounted for 53.6% of ad spend this year and will likely continue its fast growth pace in 2017 at 11.7%.
Paid search in the UK is being driven by mobile at 10.6% in 2016 and 8.4% in 2017.
UK pushes ahead driven by digital properties
The world’s second largest advertiser, China, is set to reach $81.8bn in ad spend this year. Whilst TV commands much of that share, digital ranks a close second in terms of media type. Mobile has pushed digital spending to 47.1% in 2016. Due to a high number of Chinese smartphone users, mobile’s share of digital will reach 34% of total digital ad spend in 2017.
By comparison, Carat finds that India is quickly moving from mobile-first to mobile-only and hence spending here is likely to reach 35% by next year.
Indeed, improvements across mobile technology as well as mobile measurement and analytical tools mean that a growing number of brands are investing in the format. Mobile already takes a considerable share of social media ad properties and will continue to do so over the coming year.
Mobile to reach 49% of total digital growth
In addition, the format is helping online video ad spend to increase worldwide at 41.3% in 2016 and 32.8% in 2017. Within the US, 117m mobile device owners are now watching video on their devices.
Jerry Buhlmann, CEO of Dentsu Aegis Network, concludes:
jerry buhlmann

“In a world where connectivity and convergence are now the norm, mobile, social and online video lead the rapid growth of digital investments. With more flexible, targeted and data-led media solutions, mobile, social and video are driving the demand for richer and more powerful consumer engagements, in the right place, at the right time.”

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