Thursday, April 25, 2024
Technology

Global digital Advertising spend to Reach285bn

Global electronic advertisements invest continues to soar, using the most recent forecasts from Juniper Research estimating a $285bn spend by 2020.

The amount is a near doubling of the160bn estimated pay for this season.

Whilst ad blocking adoption may be impacting the market on one hand over the flip the report, Worldwide Digital Advertising 2016-2020, found that better audience targeting will nevertheless help to drive higher click through rates and increase publisher earnings.

“Publishers, such as Facebook, are utilising their unprecedented audience understanding to offer advertisers highly precise targeting, thereby increasing the click through rates that advertisers are witnessing now,” said Sam Barker, author of the research.

Ad earnings will also be set to be pushed up by the adoption of faster real time bidding procedures from exchanges like the Rubicon Project and Fiksu, according to the research, because streamlining the bidding process reduces page load times and increases the user experience.

Mobile may also drive growth with an average yearly increase of 22% in mobile and wearable advertising spend expected over precisely the exact same period to 2020. In 2015 advertisement revenues from mobile platforms surpassed their competitions.

But this means the sector is gearing up to get a higher adoption of mobile ad blockers, expected to increase over the next five years according to this report, as users start using them on their mobile devices in addition to their desktop.

Publishers will also be set to need to compete with the debut of network level advertising blocking — like that from UK cellular operator Three, the report points out, bringing yet more obstacles into the digital advertiser.