Online advertising will overtake TV as the world’s largest single advertising medium in 2018, according to Advertising Expenditure Forecasts, a new report by Zenithoptimedia. TV is currently the dominant advertising medium, with a 37.7 percent in 2015, but the agency believes television advertising’s share peaked at 39.7 percent in 2012, estimate it at 37.7 percent in 2015, and expect it to fall back to 34.8 percent by 2018.
However, the report notes that the rapid growth of paid search – a direct response channel – forms a major part of the figures for online advertising spend, so TV is expected to continue to be the dominant brand awareness channel, which Zenithoptimedia say they expect it to be for many years to come.
Steve King, ZenithOptimedia’s CEO, Worldwide. “Growth of the global ad market is being driven by advances in technology, especially mobile and programmatic tech. But television remains by far the most important channel for brand communication, and online video, its digital offshoot, is increasing the audiovisual share of global display advertising.”
The report also found that mobile advertising will also overtake desktop and account for 50.2 percent of all online advertising. Mobile advertising will total US$114bn in 2018, up from US$50bn in 2015, and will be larger than all other media except for TV (which will total US$215bn, up from US$206bn in 2015).
Mobile advertising is responsible for almost all of the growth in global ad spend, with annual growth rates of 32 percent forecasted for the years 2015 to 2018, accounting for 87 percent of all of the new advertising spend added to the global market during these years.