In a new report, Leading forecaster , Zenith has projected that internet advertising will overtake advertising in traditional television to become the world’s biggest advertising medium in 2018, accounting for 37.0% of total ad expenditure.
The report noted that as internet advertising matures, its has slowed down, yet, it remains the fastest growing medium by some distance.
“We estimate that internet adspend grew 18% year on year in 2016, and we forecast an average growth rate of 11% a year between 2016 and 2019. By 2019 we expect internet advertising to account for 41.9% of global adspend.”
The report also pointed out that display was the fastest-growing internet sub-category, with 14% annual growth forecast to 2019. “Here we include traditional display (such as banners), online video and social media.
“All three types of display have benefited from the transition to programmatic buying, which allows agencies to target audiences more efficiently and more effectively, with personalized creative.
“Traditional display grew just 0.7% in 2016, but we expect it to pick up over the next few years, and forecast 6% annual growth to 2019. Meanwhile we predict that online video advertising will grow by 16% a year on average between 2016 and 2019, while social media will grow by 20% a year.
“Online video is benefiting from the increasing availability of high quality content, and improvements to the mobile viewing experience, such as better displays and faster connections. And for many consumers, checking their mobile devices for social media has become a regular, ingrained habit, while social media ads blend seamlessly into their mobile app newsfeeds.”
Zenith also added that paid search and classified are now both lagging substantially behind display, while search is growing at 9% a year, and classified at 8%.