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According to Zenith's latest advertising spend, a mature Internet advertising market will account for just over half of worldwide advertising spend.
Zenith predicts that spending on the Internet will account for 47 percent of all advertising spend this year and 52 percent in 2021, up from 44 percent in 2018.
The numbers are consistent with the badessment of factors for online growth published by the WARC, published in May, but the report concluded that the critical point would be reached next year.
Zenith believes that over the next two years, the growth rate of Internet spending will decrease significantly as the market matures from 17% in 2018 to 12% this year and 9% in 2021 – the first year of growth of ad advertising on the Internet to a single figure since 2001, date of the bursting of the Internet bubble.
The growth rate of the Internet advertising market is starting to converge with the growth rate of the market as a whole, noted Zenith.
He also observed that most of the growth in Internet advertising came from small local businesses that spend their entire budget on platforms such as Google and Facebook, which offer simple, self-contained tools for managing campaigns and audiences. very targeted, which distorted the overall picture.
Major brands, on the other hand, generally allocate less than half of their budget to the Internet and continue to spend most of their resources in traditional media.
"The categories that have most advanced in the use of modern digital channels are technology, media, finance and professional services," said Matt James, president of Zenith's global brand.
"And even in these areas, brands continue to rely on traditional media to create broad awareness and reinforce their values."
In the Internet category, expenses were driven by online video and social media, which are expected to grow at average rates of 18% and 17% per year, respectively, until 2021, helped by technical factors such as faster connection speeds, targeting and dissemination. alongside investments in content.
The growth rate of paid search is expected to slow to 7% in 2021, while online clbadifieds, which are beginning to lose digital channels and free alternatives, will actually decrease by 1.6% this year .
Audiovisual TV advertising revenues are also expected to decline annually by 2021, from $ 184 billion in 2018 to $ 180 billion in 2021, and printing continues to decline in the long run.
Radio, however, is increasing its advertising revenues by 1% per year, and the spread of digital networks in digital signage is contributing to a 4% annual growth in this channel.
Worldwide advertising spend is expected to increase by US $ 28 billion this year, of which nearly half (US $ 13 billion) will come from the United States; China will be the second largest contributor to growth, with $ 4 billion of additional ad spending, followed by the United Kingdom and India with $ 1 billion each.
Comes from Zenith; additional content by ARM staff
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