In the recent industry report “Global Entertainment and Media Outlook 2014-18,” research firm PricewaterhouseCoopers analyzed and forecasted how consumers and advertisers will be spending their media dollars globally through 2018. According to the report, digital advertising is closing in on TV advertising to become the largest advertising segment, set to rise to $194.5B 2018. Mobile is predicted to overtake classified advertisements this year, and video advertising will see accelerated growth, with revenue rising at a 23.8% CAGR (compound annual growth rate). The report also found that an increasing number of advertisers are adopting programmatic advertising and native solutions to improve their video and display advertising performance by making sense and strategy out of the sheer complexity of “big data.”
Let’s take a look at some of the major digital trends were highlighted throughout the report:
1. Online will become the largest advertising segment, set to rise to $194.5B by 2018
Total Internet advertising will increase to $194.5B in 2018, a 10.7% CAGR, meaning that it is closing in on TV advertising revenue as the largest advertising segment. This is a significant advance from 2009, when total TV advertising revenue was $132.0B and total Internet advertising revenue just $58.7B.
2. Video will see the most accelerated growth with online advertising, with revenue rising at a 23.8% CAGR (compound annual growth rate), ahead of mobile’s 21.5% CAGR.
Global video Internet advertising revenue will rise at a 23.8% CAGR through 2018, ahead of mobile’s 21.5% CAGR.
3. Advertisers are looking to programmatic and native advertising to improve display ad performance.
In an effort to improve efficiency, many advertisers are moving toward programmatic advertising platforms that offer greater planning control, while others are adopting native advertising formats.
4. Mobile advertising will overtake classified advertising in 2014.
Global mobile Internet advertising revenue is forecast to take over classified advertising in 2014 to become the third-largest Internet advertising channel.
5. Tracking users in a multi-device world presents new challenges.
Thanks to desktop browser cookies, tracking used to be relatively easy. However, many new mobile devices lack cookie tracking and have made cross-device targeting a more sophisticated matter. With the growing level of smartphone users, efforts are under way to help advertisers improve their targeting of these consumers.
See the full report here.