It comes as no surprise that advertising is increasingly shifting to digital spaces, threatening to render traditional advertising techniques obsolete. As time and technology continue to advance, keep up-to-date with the marketing trends of today and tomorrow with Nasdaq’s industry insights.
By the end of this year, total international spending on advertising is expected to add up to $542.55 billion, up nearly $30 billion from 2015’s numbers. With a projected growth rate of five to six percent over the next five years, that worldwide figure should total about $700 billion by 2021.
Among this incredibly expansive industry, digital advertising has proven to be the most rapidly growing segment. Opposed to the five percent growth rate predicted for the advertising industry as a whole, the digital sector is predicted to grow at a minimum rate of 11.1 percent over the next five years, and that rate doesn’t even accurately depict the sector’s full growth potential.
Such substantial growth means that Internet advertising revenue will exceed television advertising as early as this year.
What drives digital advertising’s growth? In short, mobile advertising. Mobile advertising made up for half of all spending on Internet marketing in 2015, a figure that is expected to reach 63.4 percent by the end of 2016, according to a recent eMarketer report. Development of mobile capabilities and, in turn, an increase in time spent on mobile devices, has allowed mobile advertising, and its many facets, including mobile videos, to grow exponentially in recent years.
Mobile advertising will continue to assert its dominance on the advertising industry in the years to come; but, there are other forms of digital marketing to keep on your radar.
Programmatic advertising prevails as the dominant method of purchasing digital display advertising. Numbers for programmatic advertising shifted slightly below 50 percent in 2015, but, this year, the percentage of digital ad displays that will be programmatically bought is expected to be 67 percent.
According to a Salesforce.com report, to utilize programmatic ad spending to its full potential, “Advertisers are leveraging Facebook Custom Audience, Twitter Tailored Audiences, and now Google Customer Match to align advertising to the CRM-based data they already use to guide the customer journey.”
Digital advertising is not without its problems. The increased use and strength of ad blockers has proven to be a major challenge for the digital advertising industry.
More than 200 million Internet users are currently believed to use ad blockers, reducing their exposure to carefully devised Internet marketing tactics and resulting in a potential loss of over $27 billion by 2022 for digital publishers, per Ooyala’s Global Video Index report for Q1 2016.
Hurdles, like ad blockers, are sure to bring out creativity like the advertising world has never seen as key players in digital advertising, including Google, Facebook, Microsoft, and Amazon, push to discover new channels of opportunity through digital marketing. For more information regarding digital advertising, [Click Here].