Internet ad spend to exceed $200bn in 2017 – surpassing TV for first time | M&M Global

Internet ad spend to exceed $200bn in 2017 – surpassing TV for first time

Global internet advertising expenditure is set to grow 13% to reach $205bn in 2017, according to Zenith’s new ‘Advertising Expenditure Forecasts’ report.

TV and phone

The Publicis Media agency claims this will be the first year in which more money will be spent on internet advertising than advertising on traditional television – which will total $192bn – with internet advertising attracting 36.9% of all expenditure, up from 34% in 2016.

Year-on-year growth in online advertising is slowing, however, and expected to hit 13% in 2017 – down from 17% in 2016, and 20% in 2015. Zenith predicts the growth rate will drop to 12% in 2018 and 10% in 2019.

Social media represents the fastest growing branch of internet advertising, according to the report, and is expected to reach $55bn in 2019, overtaking printed newspaper ad expenditure at $50bn, which is shrinking 5% a year as circulations fall. By 2019, print ad spend is expected to sink to levels last seen in 1985, without adjusting for inflation.

Overall, the global ad market is growing at a steady pace of approximately 4% per year since the beginning of the decade and that trend is expected to continue, albeit slowing slightly year on year.

Just 10 cities will contribute 11% of all the growth in global ad spend between 2016 and 2019, with New York the world’s most important city for advertising, representing $15bn spend this year.

“Population numbers, productivity and disposable incomes are rising faster in cities than elsewhere,” said Zenith head of forecasting Jonathan Barnard. “So city dwellers are becoming more valuable for advertisers seeking growth. Big cities are now driving growth in ad spend.”

According to Zenith global brand president Vittorio Bonorio, internet advertising has contributed all of the growth in global ad spend since the beginning of the decade, and has stimulated much of the innovation seen in the market.

“Innovation is proceeding as fast as ever, and we believe that this is what will continue to drive brand growth for advertisers,” he concluded.

Anna Dobbie


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