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Mobile is worlds second-largest advertising medium --
Thu, 30 Nov 2017 10:37
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WARC, the international authority on advertising and media effectiveness, has released its latest monthly Global Ad Trends report digesting up-to-date insights and evidenced thinking from the worldwide advertising industry.
Focusing on mobile, this latest Global Ad Trends report includes key findings based on data from WARCs 12 key markets - Australia, Brazil, Canada, China, France, Germany, India, Italy, Japan, Russia, United Kingdom and United States - which between them account for approximately two-thirds of the value of global ad trade.
Mobile is now the worlds second-largest advertising medium
Mobile is now the second-largest ad medium by spend, having overtaken desktop internet for the first time this year. With an anticipated year-on-year growth rate of 35.2%, mobile adspend across all formats is expected to amount to $98.3bn in 2017, representing 23% of global spend.
WARC estimates that 51% of total mobile advertising expenditure for this year will be allocated to search. Display formats are expected to account for 45% and classified and other spend 4%.
The largest mobile markets are the US, China and the UK. TV is expected to remain the worlds largest ad medium by spend this year and next, at around $139bn.
Almost all of Facebooks ad revenue now comes from mobile
Social networking accounts for over a third of daily online time via all devices (2hrs 15mins), and one in seven people (1.1bn) access Facebook via a mobile device each day.
Mobiles share of Facebooks ad revenue is expected to equate to 88% ($34bn) for 2017, up 5 percentage points from 2016.
With mobile display adspend expected to reach $45.2bn within WARCs 12 key markets this year, there is a strong correlation between Facebooks global mobile ad growth and the growth of mobile display in the markets. However whilst mobile growth will far outpace all other media, as Facebooks mobile ad revenue growth eases (a forecast rise of 40% in 2017 versus 70% in 2016), global mobile display growth will also cool.
The duopoly of Facebook and Google accounts for a quarter of global advertising spend
A comparison of company revenues with data in WARCs Adspend Database, which contains adspend data for 96 markets, shows that the duopoly of Facebook and Google will account for 61% of all online advertising expenditure this year, up from 58% in 2016 and 47% in 2012.
Further, the anticipated $133bn in combined revenue will equate to a quarter of all adspend worldwide in 2017, up from a fifth in 2016 and just 9.4% in 2012.
James McDonald, Data Editor, WARC, says: 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.
Global Media Analysis: A round-up of the importance of mobile
Mobile advertising accounts for:
23% of global advertising spend this year
55% of North American marketers aim to focus on mobile branded content by 2022
88% of Facebooks ad revenue attributed to mobile in 2017
92% of Facebooks daily users use mobile
135% increase in daily mobile time since 2012
Other new key media intelligence on WARC Data
Programmatic accounts for over a third of the value of US ad trade
Advertising expenditure has grown faster than the global economy since 1980
100% pixels is twice as effective as current online video industry standard
Global Ad Trends is part of WARC Data, a newly enhanced dedicated online service featuring current advertising benchmarks, data points, ad trends and user-generated expanded databases.
Aimed at media and brand owners, market analysts, media, advertising and research agencies as well as academics, WARC Data provides current advertising and media information, hard facts and figures - essential market intelligence for ad industry related business, strategy and planning required in any decision making process.
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