Last year, industries that had been in growth stages were unexpectedly stalled due to the worldwide pandemic. A year later and while some businesses are still struggling, others have found their footing. eMarketer recently published their forecasts for worldwide digital ad spending and the industry is expected to bounce back this year. The report also highlights that mobile accounts for almost three-quarters of total spend. Get a recap of the report in this week’s Mobile Monday!
Record-setting Pace Expected for Ad Spending Growth Worldwide This Year
eMarketer’s latest report contains their latest forecasts for ad spending worldwide through 2025. The market research company indicated that since last year, there has been pent-up demand for traditional advertising while also accelerated growth in eCommerce-focused and social media ads. With these factors, they expect a record-setting pace for ad spending growth worldwide this year. Total media ad spend worldwide is estimated to hit $747.76 billion with a growth rate of 15%. According to eMarketer, that rate is the fastest since they’ve begun tracking it and by 2024, digital ad spend will nearly reach $1 trillion.
The report says that total digital ad spending will reach $455.30 billion this year. 55% of that total is expected to go to display advertising and 40% will go to search. In the past three years, the gap between display and research has widened by 5%, equating to $68.12 billion more in spending for display than for search. The rise of social media and digital video have prompted the significant growth of display.
Mobile Will Account for 75% of all Digital Ad Dollars
eMarketer’s report noted that mobile ad spending will account for approximately 75% of all digital ad dollars. In Western Europe, 71% of digital ad spending is expected to be held by mobile. As recently as 2017, this share was only 56%. In the U.S. and Canada, 68% will go to mobile this year. While these figures trail Asia-Pacific’s 87% spending on mobile ads, the gap is closing.
Of the 37 national markets eMarketer studied, only China recorded overall ad spending growth in 2020. The increase of 7% still represented a major deceleration. According to the report, all markets will bounce back this year. India will show the biggest growth with a 32% ad spend increase and will remain at the top of the list for growth until 2025. Most countries will return to or surpass their 2019 trend lines for digital ad spending growth.
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