According to the Advertising Expenditure Forecasts study by the Zenith media agency, total advertising spending will increase from $84 billion to $126 billion in 2016-2019. Digital advertising formats will account for 64% of the overall growth in global advertising spending.
Display advertising as a whole will account for 50.4% of internet advertising spending by 2019, thus exceeding 50% for the first time. Most of this growth will come from social media (an increase of 20% per year) and online videos (an increase of 21% per year).
Social media form the centre of the digital lives of most users. Here they plan their social life, read news and document their activities - and that is what brands can use to communicate very effectively with them. Online video presents brand values much better than traditional display formats such as banners.
Paid search and online ads are slowing down, video blends with television
Paid search had been the largest online advertising channel until 2015 when it was overtaken by display advertising. Paid search continues to grow (by about 10% per year), but remains behind the growth of internet advertising as a whole, which will account for 12% per year. The situation of online ads with 7% growth per year is similar.
As far as video advertising is concerned, online video and traditional TV are gradually becoming less and less distinct. Both of these platforms work much better together than individually - when they complement rather than replace each other. By 2019 their market share will have grown from 48.5% in 2016 to 49.3%.
The first edition of the Advertising Expenditure Forecasts report was published thirty years ago in September 1987. The report was originally published by Saatchi & Saatchi but shortly after its launch it was taken over in 1988 by Zenith.
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