Mobile is anticipated to be a driving force behind global advertising expenditure growth.
Mobile advertising is expected to make up 30.5% of global ad expenditure in 2020, according to new forecasts from Zenith.
Back in 2017, mobile advertising accounted for 19.2% of global advertising expenditure, which is 11% lower than the 2020 growth prediction from Zenith’s recently published “Advertising Expenditure Forecasts”. Furthermore, the ROI Agency noted that if expenditure on mobile ads continues to grow at its current rate, it will “comfortably overtake television in 2021.”
The reason is expenditure on mobile ads is expected to total $187 billion in 2020. This is more than double the $88 billion that is spent on desktop advertising and only $5 billion less than the $192 billion spent on TV advertising.
Be that as it may, Zenith does note that while mobile expenditure is likely to take over TV in a few years, television ads remain the most effective (53%) in regards to driving recall among potential consumers compared to mobile ads (41%).
Mobile advertising spending is expected to grow at a yearly average rate of more than 20%.
The more internet desktop users make the switch to mobile and new users go straight to mobile, the more online advertising favors these devices, as well. As such, mobile adspend is increasing at a rapid rate, snatching market share from virtually all other forms of media.
From its 35% growth in 2017, Zenith predicts this expansion will continue to 2020 at an average rate of 21% per year.
Be that as it may, the media company warns that brands intending to boost their mobile marketing budgets need to have a strong understanding of retention channels and acquisition channels if they want to attract new customers and grow their market share.
“The mobile device in our pockets is becoming the gateway to our media world, but its brand-building capabilities are still in question – simply applying old practices to new technology may not translate to brand growth,” Zenith’s Global Brand President, Vittorio Bonori, said.
Further commenting on the shift to mobile advertising, Bonori added that “Having a clear understanding of how the entire ecosystem of paid, owned and earned media works together to drive return on investment is vital.”