Mobile adspend will overtake TV across markets

1 year ago

According to WARC‘s global advertising trends, the mobile market which is currently the second largest advertising medium will overtake television this year.

This data was obtained from 12 key markets, Australia, Brazil, Canada, China, France, Germany, India, Italy, Japan, Russia, UK and US which between them account for three-quarters of global ad spend and 91% of all mobile adspend.

Some 80% of mobile ad market value has been created in the last five years and the rapid increase in advertiser investment has been drive by a sharp rise in daily mobile consumption, mainly from social media platforms.

Research from 96 markets monitored by WARC showed that 52% of the global population access the internet via a mobile phone with advertisers spending an estimated USD$137.9b to reach them.

Daily consumption of mobile internet has also almost doubled since 2012 by almost two hours to reach 3 hours and 14 mins per day in 2018.

Of this 90% of time is spent on apps and social networking is the most common activity with 51% of Americans visiting Facebook several times a day.

Marketing and advertising practitioners have predicted a 71% rise in mobile budgets this year with most of the money going to Google and Facebook owned platforms.

5G will boost speeds and facilitate a four time increase in monthly data consumption as three in four internet users are forecast to be mobile only. Some 18.4% of the global population is forecast to have 5G subscription by 2024 and advertisers will be able to reach this audience with high quality video advertising.

In the US mobile video ad investment is forecast to reach USD$12.6b this year up 37.1% from an estimated USD$9.2b in 2018. In China mobile ads will account for more than two thirds of online video spend at USD$5.2b.

Three quarters of global internet users will be on their mobiles only by 2025.

WARC data editor James McDonald said “Google- and Facebook-owned apps dominate mobile consumers’ lives, and this duopoly attracted over USD$150bn last year by pairing advertisers with users based on their data.




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