Report: Global digital advertising spend propelled by ad tech innovations

A new global report from ZenithOptimedia says programmatic buying and more interactive Internet ad units are helping buoy spend

A new global report from ZenithOptimedia claims digital advertising technology developments are helping to push global advertising market growth to 5.3 per cent in 2014.

The new Advertising Expenditure Forecasts report predicts global ad spending will reach US$523 billion this year, with Internet advertising the fastest growing segment at an annual growth rate of 17.1 per cent. In terms of share, Internet advertising is expected to represent 23.6 per cent of global advertising budgets in 2014, surpassing the combined share of newspapers and magazines for the first time.

Mobile Internet advertising, however, is the fastest growing space. It is forecast to increase by 67 per cent this year and account for 20 per cent of all Internet advertising. ZenithOptimedia expects mobile to climb to 25 per cent in 2015 and 30 per cent in 2016.

More widely, mobile advertising should rise to US$35 billion between 2013 and 2016 and account for 42 per cent of all extra advertising spend added to the market over that three-year period, the report stated.

The agency attributed the strong rise in digital spending to more interactive digital advertising options such as billboards, filmstrips, pushdowns and sidekick ad units, as well as improved management platforms like programmatic buying.

Related: programmatic advertising: Digital marketing’s saviour or real-time headache?

Growth is also being driven by a wider spectrum of companies than traditional media including digital specialists, tech companies and direct advertisers, the report stated.

“Internet advertising is expanding rapidly as new technology makes it easier for advertisers to reach the right people at the right time with the right message at an efficient price,” commented ZenithOptimedia’s CEO for worldwide, Steve King.

“The spread of ever more sophisticated mobile devices will help this expansion continue, sustaining steady growth in global ad spend for the next few years.”

However, the global projections are just slightly off forecasts in June, a readjustment the report said was due to tensions in Russia and the West over the Ukraine crisis.

By 2018, ZenithOptimedia predicts the Web to account for 28.6 per cent of global ad spend, narrowing the gap with TV from 15.9 percentage points to 9.9 over that period.

Signup to CMO’s email newsletter to receive your weekly dose of targeted content for the modern marketing chief.

Follow CMO on Twitter: @CMOAustralia, take part in the CMO Australia conversation on LinkedIn: CMO Australia, or join us on Facebook: https://www.facebook.com/CMOAustralia, or check us out on Google+: google.com/+CmoAu

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.
Show Comments

Blog Posts

Is customer segmentation dead?

Ginni Rometty, the CEO of IBM, announced the death of customer segmentation five years ago saying, "The shift is to go from the segment to the individual. She might have been a bit premature for most marketers, but if customer segmentation isn't dead yet, it's definitely on life support.

Richard Taylor

Senior digital strategist, Spinach

How people buy brands

Andrew Ehrenberg was a giant in the field of marketing science. He believed scientific methods could reveal law-like patterns of how people buy. In this post, I summarise one of Ehrenberg’s most important discoveries and its implications on how people buy brands.

Kyle Ross

Strategist, TRP

Is artificial intelligence riddled with bias?

The purpose of Artificial Intelligence (AI) has always been to replace the menial and repetitive tasks we do each day in every sector, so that we can concentrate on doing what we do best. Saving time and money has certainly been a decent outcome as AI infiltrates the business landscape, however, now we are starting to see problems that cause major issues in practice.

Katja Forbes

Founder and chief, sfyte

At the deeper levels of artificial intelligence, computing machines make all kinds of correlations among whatever data is available to th...

Fraction Tech

Is artificial intelligence riddled with bias? - Customer Design - CMO Australia

Read more

https://myiplookup.com/ - find your ip address and location information in our main page. Also there are many ip tools you can use : IP L...

savefrom

iSelect outlines new approach to arrest ineffective marketing as its reports full-year results

Read more

https://myiplookup.com/ - this website will allow you to View Alexa Ranking and graph Check http headers of a website, tool to compare te...

savefrom

The Star's first CMO creates all-new marketing team

Read more

Good tips to follow. Thank you!

Anna Travis

5 things every business can do to drive brand loyalty

Read more

Thank you! That was useful to know.

Belia Adam

Why your best social marketing brand tool could be hiding in plain sight

Read more

Latest Podcast

More podcasts

Sign in