There is good news for online media business. This follows the revelation that the advertising spend on online media will overtake the spending on television commercials, for the first time in 2017. This means, businesses around the world will tap online outlets more in enhancing their visibility and look beyond the traditional modes of advertising.
According to forecaster ZenithOptimedia, internet advertising will grow three times the average growth rate of ad industry in 2016. The higher demand for online ads will be fuelled by social media, online videos and paid search.
ZenithOptimedia, owned by Publicis of France, noted that the hike in online advertisement spending will definitely grow despite the general slowdown and challenges faced by the global economy, reports Sky News.
“Advertisers’ confidence has remained largely unshaken, and our forecast for global growth in 2016 have barely changed since we published our last forecasts in December,” it said.
The agency, however, slashed its growth expectation for 2016 to 4.6 percent, down from the 4.7 percent it projected in December 2015. However, it noted that the growth rate is still better than the 3.9 percent growth clocked in 2015.
Zenith Optimedia said a boost in advertising is in sight and will be driven by big events like the upcoming Rio Olympics, the European football championships and the US presidential election.
However, conditions in China, Russia, Brazil and the uncertainty over Britain’s membership in the European Union will stay as prominent challenges to the global economy.
There were also positive predictions for the ad sector where the revenue will grow 128 percent by 2018 and may garner 92 percent of the total global advertising dollars.
“Consumers are using their mobile devices to consume media in a place where they previously have never done so before, and in times and places they wouldn’t previously have access to,” said ZenithOptimedia’s head of forecasting, Jonathan Barnard.
He said increased consumer use will create more mobile advertising opportunities and expand the inventory while lowering the prices. However, mobile ads have obstacles to cross, such as limitations in cross-devicing, attribution measurements, ad fraud and bot traffic.
ZenithOptimedia’s report concludes with the affirmation that digital advertising spend zoom is inevitable in 2017 and the transition will be ahead of the cut off year 2018, which it had predicted earlier, reports Ad Exchanger.