Can you guess what advertisers are spending 1 in 5 dollars on?

June 3, 2018 1:59 pm


Buoyed by mobile growth, voice and image are bringing new marketing opportunities. An analysis of 12 key markets – Australia, Brazil, Canada, China, France, Germany, India, Italy, Japan, Russia, United Kingdom and United States – has revealed some interesting trends on how and where advertisers are putting in their ad dollars.

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According to Global Ad Trends report by WARC, search advertising spend will amount to $100.5bn in 2018, an increase of 11% from $90.5bn in 2017. This equates to one in five dollars spent on advertising worldwide this year.

Mobile eroding display’s share of ad spend

Mobile search is expected to attract $62.7bn this year – 62.4% of total search spend within these 12 key markets. Mobile’s share of total search spend has near doubled since 2015, driving wider sector growth.

Across mobile and desktop, paid search’s share of global advertising spend has trebled over the last decade, rising to over a fifth this year.

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Search’s share is expected to reach 22% in the US this year, 26% in China, and near 30% in the UK. Most of these gains have been at the expense of display formats.

“In its function as a pull medium, search has done more than replace classified – it is steadily eating into the share of advertising expenditure going to display,” James McDonald, Data Editor, WARC, says.

“Emerging formats such as mobile voice and image look likely to continue this trend. This may be a sign that brands are shifting budget; though it more likely reflects a multitude of SME advertisers who have started spending due to the accessibility of the format,” he adds.

Analysis of company reports shows that the four largest providers – Google, Baidu, Yahoo and Microsoft’s Bing – made a combined $101bn from paid search in 2017, of which $10.5bn came from outside these 12 key markets. Google dominates the landscape, drawing an estimated $85.8bn in 2017 (up 20% from 2016)

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The mobile shift

According to another study, PwC’s “Global entertainment and media outlook 2016-2020” report, mobile advertising will account for a staggering 49 per cent of all Internet advertising by the end of the decade, because fewer people will access content and media on laptops and desktop computers, and more and more will get the majority of their news through mobile phones.

The success of mobile video

Mobile video is also experiencing a huge boom in viewership. A report from Ooyola’s Global Video Index Q1 2016 stated that in 2016 mobile video viewing increased by a whopping 170 per cent since 2013.

Worth noting is the fact that 46 per cent of all video plays occurred on a mobile in the last quarter of 2015, which shows both the phenomenal rise of the format and how relevant this development is for advertisers looking to stay at the top of their game.

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Sunil Kumar Singh
By Sunil Kumar Singh
Sunil is a digital-savvy journalist and a leader in managing and integrating print & digital content in UAE, the Gulf and India. Sunil is an innovative editor with over 14 years' experience in digital content marketing, leading team and ability to deliver quality content for both print and new media.



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