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HomeNewsNew MediaInternet advertising to account for 52% of global advertising expenditure in 2021: Zenith Report
Tuesday, 09 July 2019 06:46

Internet advertising to account for 52% of global advertising expenditure in 2021: Zenith Report

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According to Zenith’s Advertising Expenditure Forecasts, internet advertising will account for 52% of global advertising expenditure in 2021. This will be the first time for it to exceed the 50% mark. This year, the figure is 47%.

Zenith Head of Forecasting Jonathan Barnard commented: “The speed at which internet advertising is growing is phenomenal; it will exceed 50% of global ad-spend in 2021. This is the first time it has appeared in our forecasts. However, 2021 will be the first year of single-digit internet ad-spend growth since 2001, the year the dotcom bubble burst.” 

As per report, internet ad-spend grew 17% in 2018, but activity in the first half of 2019 leads it to expect only 12% growth for the year as a whole. By 2021, internet ad-spend growth may fall to 9% year on year. The growth rate of the internet ad market is starting to converge with the growth rate of the market as a whole.

The report said, internet ad-spend growth is led by the overlapping channels of online video and social media, which are expected to grow at average rates of 18% and 17% a year, respectively, to 2021.

The report said that continued technological improvements to smartphone technology, connection speeds, and advertising targeting and delivery, combined with strong growth in investment in content are the main driving factors. 

However, traditional media remains the priority for most big brands, said the report.

The report added that most of the growth in internet ads pend is coming from small, local businesses that spend all their budgets on platforms like Google and Facebook, which offer simple, self-serve tools to manage campaigns, and highly targeted audiences. The fact that large numbers of small advertisers are spending all their budgets online means they are skewing the overall picture.

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