Mobile advertising triggers the growth of the global Internet market, increasing the total advertising costs by 70%

ZenithOptimedia , a communications and media buying agency, recently published a study that shows that the Internet will become the largest advertising medium in 12 key markets by 2017, accounting for 28% of total global advertising spending. According to the ZenithOptimedia Advertising Expenditure Forecasts report, mobile advertising is a key driver for this progress. It is planned that global growth in mobile advertising spending will increase from 5.1% to 12.9% between 2014 and 2017.

Desktop advertising, along with other media will remain virtually unchanged, yielding a share of mobile advertising.


The cost of mobile Internet advertising will rise to 12.9% in 2017
')
Steve King, CEO, ZenithOptimedia:

The Internet is rapidly strengthening the position of the leading advertising medium and, by maintaining this trend, will overtake television by the end of the decade. However, this applies only to traditional television, which implies watching videos on TVs. The amount of time that viewers spend on watching videos on laptops, tablets and smartphones is growing rapidly, so advertisers are transferring their budgets to the online sphere in order to keep up with trends. The spread of Internet devices and new advertising technologies will give advertisers new opportunities to communicate with consumers and learn more from them and make it more effective than ever.

Mobile advertising is the strongest driver of growth in global advertising spending, and between 2014 and 2017 it will be 70% of the growth in advertising spending. Desktop and TV advertisements follow, making up 20% each, and although, despite the fact that television advertising costs will grow by 2% annually, this growth is likely to decline, giving way to the continuous active growth of desktop and mobile advertising.

Global carrier development

Already in leading positions in Australia, Canada, Denmark, the Netherlands, Norway, Sweden and the UK, the Internet will become the main driving force in China, Finland, Germany, Ireland and New Zealand by 2017. In the rapidly developing countries of Asia, including China, India, Indonesia, Malaysia, Pakistan, the Philippines, Taiwan, Thailand and Vietnam, the most active growth is expected between 2014 and 2017 at the level of 9.1% annually.

Annual advertising costs by region

For comparison, Latin America is experiencing a recession, as local advertisers are constrained by low oil prices and export of goods. In general, Brazil’s weak economy may be the cause of reduced advertising costs.

The planned growth of the mobile Internet means that marketers will have to reorient their budgets and increase their share of expenditures for this particular advertising medium if they want to stay in the trend.



BYYD • Mobile Advertising Platform