According to ZenithOprimedia’s latest forecast, mobile internet advertising will overtake newspaper advertising next year, accounting for 12.4% of global adspend while newspapers account for 11.9%. The new research ‘Advertising Expenditure Forecasts’ predicted that mobile internet will be the third-largest advertising medium, behind television and desktop internet. It stated figures that mobile advertising will grow 38% in 2016 to USD 71bn, while newspaper advertising will shrink 4% to USD 68bn.
As per the report, the mobile advertising will remain the driving force behind the growth of the entire advertising market, contributing 83% of all new ad dollars between 2014 and 2017. The report highlighted that while desktop internet advertising will continue to grow, it will lose market share for the first time this year, dropping from 19.8% of global adspend in 2014 to 19.4%. ZenithOptimedia also forecasted desktop internet to account for 19.1% of global adspend, by 2017. Meanwhile mobile internet advertising’s share of the global ad market will rise from 5.7% in 2014 to 15.0% in 2017. Overall, internet advertising will account for 34.0% of global adspend in 2017, slightly behind television’s 35.9%.
Stating that since print adspend was declining across most of the world, as compared to 2008, the agency expected newspaper adspend to shrink by an average of 4.9% a year through to 2017, while magazine advertising by 3.2% a year.
“Mobile technology is rapidly transforming the way consumers across the world live their lives, and is disrupting business models across all industries. We are now witnessing the fastest transition of ad budgets in history as marketers and agencies scramble to catch up with consumers’ embrace of the mobile way of life,” commented Steve King, ZenithOptimedia’s CEO, Worldwide.
The report also pointed out the low oil prices weighing on big producers. Impact the ad market, it predicted that a double-digit decline in adspend this year in Azerbaijan, Nigeria and the United Arab Emirates along with declines of 7%-8% in Kuwait and Saudi Arabia. In Russia the problem of low oil prices has been exacerbated by international sanctions, leading to an estimated 14.1% drop in adspend this year.
