Mobile to account for 95% of Internet advertising growth

Anne Freier

In Mobile Advertising. May 29, 2019

Internet advertising formats are predicted to account for more than half of media expenditure globally, with mobile leading the category, according to the latest Global Ad Trends report by WARC.

Across Australia, Brazil, Canada, China, France, Germany, India, Italy, Japan, Russia, the UK and the US Internet is expected to account for more than half of media expenditure in 2019 (52.7% combined).

In the US, Internet ad spend came to $107.5 billion in 2018 making it a leading medium in the country for the first time.

“While the first wave of internet growth was driven by banner ads and search keywords on desktop computers, the second phase has been propelled by social media advertising delivered on mobile devices,” explained James McDonald, Managing Editor at WARC Data.

Mobile will account for 95% of Internet advertising growth as mobile devices have become readily accessible across the world. This in turn has led to increased programmatic ad trading.

Mobile adspend surpassed expenditure for other Internet channels such as desktop and tablet for the first time in 2018 and is predicted to account for 58.8% of all Internet spend in 2019 or $175.3 billion.

According to the forecast, Internet adspend will grow to $298.1 billion in 2019, which represents 5x the expansion rate than investment in non-media since 2010.

Meanwhile, display formats such as banner ads, rich media, advertorial and sponsorship, online and social video are predicted to reach a 45.1% share of Internet ad spend across WARC’s 12 top markets.

The majority of online display investment is still coming from social with the US, China and the UK leading the field in terms of social ad expenditure. In the US alone, 83.4% of social spend goes to Facebook, up from 79.9% in 2018.

At the same time, online video continues its growth spurt growing 33% since 2015 and predicted to fetch one in three dollars in 2019.