It’s been more than two decades since the first banner display advertisement came into existence on the world wide web. Since then display advertising has grown tremendously both from technology as well as ad spend point of view. The first display banner appeared in October 1994 and it was sponsored by AT&T on HotWired.com to promote seven art museums and earned billions of dollars in revenue.
Today we are in 2017, there seems to be never unending ad spend growth. The industry is expecting to witness an ad spend rise of 40 percent in 2018 and 44 percent in 2020 globally as found by Zenith in their recent research. The ad spent growth is valued from 203 billion USD in 2017 to 225 billion USD in 2020 globally. The expenditure allocated to internet advertising varies widely across the world. Sweden and UK being the most advanced markets will account for more than 60 percent of the total expenditure next year. Rest of the six countries like Australia, Canada, China, Denmark, Norway and Taiwan is expected to account expenditure between 50 percent and 60 percent of the share.
Even India is not far behind. Digital advertising in the country is also expected to touch the Rs. 25,500 crore mark in 2020. According to CII-KPMG report, compound annual growth rate (CAGR) is expected to be at 33.5%
One of the important factors contributing to this growth is the significant increase in content consumption by Indian population across social media platforms. Besides, Government’s digital initiatives are also contributing to this growth. Advertisers have already realized the influential power of digital and social media and are willing spent much more now on digital platforms then 5 years back.
Who would be the biggest beneficiaries of this growth?
There are five big platforms who would be the biggest beneficiaries of the global ad spent growth
These five platforms increased their share of global internet ad spent from 61% to 72% between 2014 and 2016 and captured 83% of the growth. While Baidu, Alibaba and Tencent accounted for 54% of the growth in ad spent in China. Google and Facebook from the western market accounted for 96% of the growth in the rest of the world.
Global Growth Forecast & Trend:
Here are the Global ad spending growth forecasts as issued by three of the top Ad Agencies in the industry - Zenith, MAGNA, and the Densu Aegis Network for 2016-2018
Country wise year on year percentage growth in advertising expenditure - 2016-2018 as published by Densu Aegis Netork in June 2017.