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BizReport : Advertising archives : March 24, 2016

Internet ad spending to overtake television by 2017

More will be spent on Internet advertising than on television commercials by next year, according to a new report from ZenithOptimedia.

by Helen Leggatt

According to ZenithOptimedia, the spend on Internet advertising will overtake that on television, for the first time, a year earlier than predicted. The report claims that spending on Internet advertising by businesses around the globe is expected to grow at more than three times the rest of the industry this year, driven by growing demand for ads on social media, paid search and online video.

Previously, ZenithOptimedia had forecast Internet ad spending to overtake television in 2018. However, Internet advertising's growth rate is slowing as it matures with 15.7% forecast for this year versus 21.1% in 2014. ZenithOptimedia expects it to remain in double digits for 2017.

The vast majority of new Internet advertising will be targeted at mobile devices, with mobile ad expenditure set to increase by $64 billion between 2015 and 2018, a growth rate of 128%.

ZenithOptimedia cited the UK as the standout ad market in Europe and that it was "currently booming thanks to the rapid adoption of internet advertising". Ad spend growth in the UK is predicted to be 9.2% this year, compared to 4.1% in the Western and Central Europe regions, down slightly from December's forecast of 9.7%.

"Rapid growth from countries that are relatively new to the international advertising market, combined with a resurgence of established markets that were damaged by the financial crisis, will keep the global ad market on track for healthy growth for at least the next few years," said Jonathan Barnard, Head of Forecasting at ZenithOptimedia.

Image via Shutterstock

Tags: ad spend, advertising, global, Internet, television

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