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

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

Latest Videos

More Videos

fdgfd www.google.com

Caroline Natalia

How WW shifted physical engagement to virtual success in 5 days

Read more

I found decent information in your article. I am impressed with how nicely you described this subject, It is a gainful article for us. Th...

Daniel Hughes

What 1800 Flowers is doing to create a consistent customer communications experience

Read more

Extremely informative. One should definitely go through the blog in order to know different aspects of the Retail Business and retail Tec...

Sheetal Kamble

SAP retail chief: Why more retailers need to harness data differently

Read more

It's actually a nice and helpful piece of info. I am satisfied that you shared this helpful information with us. Please stay us informed ...

FIO Homes

How a brand facelift and content strategy turned real estate software, Rockend, around

Read more

I find this very strange. The Coles store i shop in still has Flouro lights? T though this would have been the 1st thing they would have ...

Brad

Coles launches new sustainability initiative

Read more

Blog Posts

9 lessons from 7 months of relentless failure

The most innovative organisations embrace failure. Why? Because it is often through failing the most creative out-of-box thinking happens. And with it comes vital learning opportunities that bring new knowledge and experience into teams.

Jacki James

Digital product lead, Starlight Children's Foundation

Why conflict can be good for your brand

Conflict is essentially a clash. When between two people, it’s just about always a clash of views or opinions. And when it comes to this type of conflict, more than the misaligned views themselves, what we typically hate the most is our physiological response.

Kathy Benson

Chief client officer, Ipsos

Brand storytelling lessons from Singapore’s iconic Fullerton hotel

In early 2020, I had the pleasure of staying at the newly opened Fullerton Hotel in Sydney. It was on this trip I first became aware of the Fullerton’s commitment to brand storytelling.

Gabrielle Dolan

Business storytelling leader

Sign in