Mobile Ad Spend to hit $98.3bn- Report

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Mobile ad spends across all formats is expected to reach $98.3bn in 2017, representing almost a quarter (23%) of worldwide advertising expenditure, according to the new analysis from WARC.

The latest Global Ad Trends report also forecasts mobile ad spend will record 35.2% year-on-year dollar growth in 2017, with half (51%) of the total allocated to search, followed by display formats (45%) and then classified and other spends (4%).

Mobile’s growth is such that it is now the second-largest ad medium by spend, having overtaken desktop internet for the first time this year.

These are some of the report’s key findings based on data from WARC’s 12 key markets of Australia, Brazil, Canada, China, France, Germany, India, Italy, Japan, Russia, the UK, and USA, which collectively account for approximately two-thirds of the value of global ad trade.

Advertisers within these 12 key markets are expected to spend $45.2bn on mobile display this year and the report found a strong correlation between Facebook’s global mobile ad growth and the growth of mobile display in these markets.

Mobile is expected to account for 88% ($34bn) of Facebook’s ad revenue in 2017, but its growth is forecast to ease to 40% in 2017 compared with 70% growth in 2016, and this, in turn, will see growth in global mobile display to begin to slow.

Elsewhere, comparison of company reports to WARC’s Adspend Database, which monitors advertising expenditure in 96 markets worldwide, reveals that the “duopoly” of Facebook and Google will account for 61% of all online ad spend this year, up from 58% in 2016 and 47% in 2012.

Furthermore, their anticipated $133bn in combined revenue will equate to a quarter of all global ad spend in 2017, up from a fifth in 2016 and just 9.4% in 2012.

Commenting on this trend and other findings, WARC Data Editor James McDonald said: “Daily mobile time has more than doubled over the last five years – from 1hr 17mins in 2012 to 3hrs 2mins in 2017 – and our research demonstrates how marketers are looking to capitalise on this by investing more in social, video and native mobile formats over the coming years.

“Much of this influx has been to the benefit of the duopoly, Facebook, and Google, where one in four dollars of global advertising is now spent.”

Sourced from WARC