Global ad expenditure is expected to increase 4.7% in 2019 to reach $623 billion according to a new forecast by Zenith Media. The latest Ad Expenditure Forecast suggests that the revised figures are an upgrade from 4.0% made in December.
Internet ad spend now accounts for 39% of total ad expenditure and is projected to grow 11% this year and 10% in 2021.
Meanwhile, formats such as display including banners, online video and social media are expected to grow 13% until 2021. This is largely driven by programmatic buying.
Online video is predicted to grow 19% between 2018 and 2021 fuelled by mobile devices and the improved viewing experience. Similarly, social media (14%) has seen a boost due to more people checking their statuses and notifications on social apps using smartphones.
Meanwhile, paid search and classified formats have fallen behind at 7% each a year.
Interestingly, growth in online ads is substantially driven by smaller and local businesses, which make use of simple self-serve and targeting options provided by companies such as Google and Facebook.
At the same time, larger brands continue to make use of digital technologies as well as traditional media to reach audiences.
“Brands with more than a niche market share still need interruptive advertising at scale to acquire new customers,” said Ben Lukawski, Zenith’s Global Head of Strategy. “As more communication takes place online, the challenge for brands is to build distinctiveness through frequent short-term exposure, rather than the occasional but longer exposures common to traditional media.”
Regionally, the US now accounts for 37% of global ad expenditure and continues to be the biggest contributor to spending between 2018 and 2021 adding $32 billion to the market. China ranks second at $16 billion and India third adding $5 billion.