Global digital advertising spend to reach nearly $300 billion by 2020
The global digital advertising spend across mobile, wearable and online devices will exceed $285 billion by 2020, up from an estimated $160bn in 2016, according to new study from market research firm Juniper Research.
The staggering growth will be driven by an average annual growth of 22 per cent in mobile and wearable advertising spend, as brands and retailers continue to invest in the mobile consumer engagement.
The new research, Worldwide Digital Advertising: 2016-2020, found that, despite the rising adoption of ad-blockers, better audience targeting will drive higher click-through rates and increase publisher revenues.
“Publishers such as Facebook are utilising their unprecedented audience knowledge to offer advertisers highly accurate targeting, thereby increasing the click-through rates that advertisers are witnessing now,” said the research’s author Sam Barker.
He added that publishers who are able to offer the most efficient targeting are set to become the most popular amongst advertisers.
A major chunk of ad revenues will come from mobile platforms, as this is the fastest-growing sector, with a comparatively low adoption of mobile ad-blockers. Last year saw ad revenues from mobile platforms surpassing those from online ones.
However, mobile ad-blocking adoption is expected to increase over the next five years, as users bring the benefits of the technology onto their mobile devices, the study said.
The research also warned that publishers will have to contend with the introduction of network level ad-blocking, such as the one currently being deployed by the UK mobile operator Three.