ZenithOptimedia Finds Digital Ad Technology Will Drive 5-6% Annual Adspend Growth
September 23, 2014 at 5:12 AM (PT)
The rapid development of digital advertising technology will help the global advertising market grow 5.3% in 2014, up from 3.9% in 2013. Growth will remain strong over the next two years, staying at 5.3% in 2015 and rising to 5.9% in 2016.
According to ZENITHOPTIMEDIA’s new Advertising Expenditure Forecasts, the global adspend will grow 5.3% to reach $523 billion over the course of this year. Internet advertising is by far the fastest-growing medium, which they forecast to expand by 17.1% this year, as improving digital advertising technology makes internet advertising cheaper and more effective. This growth is being driven by a wider spectrum of companies than traditional media, including digital specialists, tech companies, and direct advertisers.
ZENITHOPTIMEDIA expects Internet advertising to command 23.6% of global advertising budgets this year, exceeding the combined share of newspapers and magazines (22.7%) for the first time. By 2016 they expect the internet to account for 28.3% of global adspend, having narrowed the market share gap between itself and TV from 15.9% to 9.9%.