For the first time, the internet in 2020 will account for more than half of both U.S. and worldwide ad spending. U.S. ad spending will grow 6.5% in 2020, boosted by political spending and the Summer Olympics, according to Zenith projections. Zenith expects U.S. internet ad spending to jump 12.4% in 2020 to $135 billion, accounting for 53% of ad spending.
Media agency group Zenith forecasts that internet advertising will grow by 10% worldwide next year, its lowest growth rate since 2001. Cinema advertising is predicted to surge more than 12%, making it next year’s fastest growing ad medium.
Domestic ad revenue in 2017 is on track to increase 4% to 5% in 2017, thanks to growth from internet-based companies, according to Pivotal Research Analyst Brian Wieser. A group of 10 large web firms, including Google, Amazon and Expedia, increased their spending on sales and marketing by a median growth rate of 24% in the most recent quarter, he said in a note to investors.
Although concerns over digital video remain, strong growth is expected in the next few years. Analysis from MoffettNathanson, based on Magna Global estimates, forecasts that U.S. Internet/online video will see a 24% average annual ad revenue growth rate, rising to $20.4 billion in 2021 — from $7 billion in 2016. At the same time, traditional U.S. TV spending will have a 2% average annual ad revenue decline per year, totaling $60.4 billion. That is down from $67.1 billion in 2016.
While traditional media continues to struggle to hold onto advertising dollars, digital is hotter than ever. First-half digital spending surpassed $20 billion for the first time this year, and second quarter rose 18 percent over last year, according to new numbers out this morning from the Interactive Advertising Bureau. The IAB reports that second-quarter spending hit $10.03 billion, up from $8.7 billion during the same time last year.
Much of the commercial Web relies on advertising, but increasing use of ad-blocking software is just one of the problems that advertisers face.
While search ads still make up nearly half of total online ad revenue, the Interactive Advertising Bureau and PricewaterhouseCoopers said Tuesday that mobile ad revenue more than doubled in 2012, accounting for 9% of online ad revenue.
Not all paid media dollars expect a lift in consumer product revenue. Sometimes brands need to weight more promotional price discounting and Internet buzz into the mix. This is among the results of a Nielsen study looking at marketing of products in Asia-Pacific, the Middle East and Africa.
Internet ad spending zoomed to new heights in 2011 and it will do so again in 2012, with search and social media becoming an increasingly crucial part of advertisers’ spending mix. While forecasters tempered their predictions for ad growth for nearly every other category over the past month, they remain bullish about online.