Report: Social, online video and paid pushing ad spend growth

Latest Zenith advertising expenditure report shows social media in-feed ads, online video and native advertising to be leading growth in global digital advertising

Social media in-feed ads, along with online video and paid content, are leading growth in global digital advertising, Zenith’s 30th annual latest advertising trends study claims.

According to the new Advertising Expenditure Forecasts, these next-generation formats are expected to drive 14 per cent annual growth in total display advertising between 2016 and 2019, and represent 64 per cent of all growth in global ad expenditure during the three-year period. This will see total expenditure across the category rising from US$84 billion to US$126bn by 2019.

Zenith reported most of the growth coming from social media, which is forecast to leap 20 per cent a year, along with online video (21 per cent growth per annum).

Overall, global ad spend is expected to grow 4 per cent this year to US$558bn, down from the 4.2 per cent predictions made by the group in June.

Closer to home, Zenith also downgraded spend forecasts by 0.5 per cent, stating revenue for 2017 is now expected to grow at 2.9 per cent over the year. This is below 2016 results but higher against overall economic growth predictions in Australia this year.

Not surprisingly, digital is the dominant advertising force, and is estimated to increase by 10.4 per cent this year, accounting for more than half of total billings in 2017 (52 per cent versus 48 per cent in 2016).

Another advertising category still doing well is out-of-home, which has benefitted from digitisation as well as increased inventory nationally. In contrast, print continues to be impacted, although radio and cinema remain steady, and TV is undergoing its own transformation in the face of online competition as well as programmatic advertising buying.

Online classified advertising is also on the wane, and is expected to rise by just 7 per cent per annual to US$21bn in 2019.

Paid search still showed growth thanks to mobile and location-based search functionality, chalking up US$78 billion in sales in 2016, but is lagging behind overall. However, the report suggested the rise of voice-activated devices such as Siri, Alexa and Google Home could also further shake-up this part of the market.

As a result, Zenith forecast annual growth of 10 per cent between 2016 and 2019, representing a total ad spend of $103bn.  

“Internet display is coming into its own as a brand building media, powered by social media and online video,” commented Zenith’s global head of forecasting and intelligence, Jonathan Barnard. “But the distinctions between online video and traditional television are being eroded, and the two work together much better than they do separately.”

According to the report, industries spending the most on ad spend are automotive, retail, alcoholic beverage and technology. Zenith reported government, media, real estate, travel and food declined.  

Zenith’s report comes a week after the latest annual Online Advertising Expenditure Report from IAB and PricewaterhouseCoopers, which reported mobile as more than 50 per cent of display advertising in Australia for the first time in history.


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

Join the newsletter!

Or
Error: Please check your email address.
Show Comments

Blog Posts

Social purpose: Oxygen for your brand health vitals

If trust is the new currency, then we’re in deep trouble. Here's why.

Carolyn Butler-Madden

Founder and CEO, Sunday Lunch

Customer experience disruption: Healthcare faces a bitter pill

Over the past decade, disruptors such as Amazon, Apple and Australia’s Atlassian have delivered technology enhanced customer experiences, which for the most part, have improved customers’ lives and delivered unparalleled growth. Can they do the same for healthcare?

Alex Allwood

Principal, All Work Together

How can a brand remain human in a digital world?

Some commentators estimate that by 2020, 85 per cent of buyer-seller interactions will happen online through social media and video*. That’s only two years away, and pertinent for any marketer.

James Kyd

Global head of brand strategy and marketing, Xero

https://bit.ly/2qLgzmR Transform your life a proven digital blueprint

Okitoi Steven

How this banking group tackled a digital marketing transformation

Read more

Its great to hear that companies including JCDecaux, oOh!media, Omnicom and Posterscope Australia have all partnered with Seedooh inorder...

Blue Mushroom Infozone Pvt Ltd

Out of home advertising companies strive for greater metrics and transparency

Read more

Much ado about nothingAnother fluff piece around what it could possibly do rather than what it is doing

gve

How AMP is using AI to create effortless ‘experiences’

Read more

is it true that Consumer expectations are also changing as a result. If we trust someone with our data there is also an expectation that ...

Sunita Madan

Society will decide where digital marketing takes us next: Oracle

Read more

This Blog is Very interesting to read and thank you for sharing the valuable information about Machine Learning. The information you prov...

johny blaze

What machine learning has done for the Virgin Velocity program

Read more

Latest Podcast

More podcasts

Sign in