2020: Three Quarters Of All Online Display Ad Revenue Will Come From Mobile

2020: Three Quarters Of All Online Display Ad Revenue Will Come From Mobile
SHARE
THIS



By 2020, more than three-quarters of all online display advertising revenue will come from mobile, according to a white paper released by IHS Markit, a leader in critical information, analytics and solutions.

“Mobile advertising has grown stronger than any other medium in the last four years, and now accounts for a significant proportion of online advertising revenue,” said Qingzhen Chen, senior analyst at IHS Markit.

mobile as dis adv

Global trends

Global mobile display advertising surged 72 per cent in 2015 compared to the previous year, and accounted for 45 percent of all online display advertising revenue, with a total of €29 billion ($A40 billion).

In 2016, worldwide mobile advertising will grow 42 percent, to $US41 billion and for the first time will generate more than half—55 per cent—of all online display advertising revenue, said the latest IHS Markit white paper.

Regional highlights: China

China has maintained its growth momentum despite economic restructuring, but the real growth engine comes from online. With roughly $US33 billion in revenue for 2016, the Chinese online advertising market is the second largest in the world. Online grew 17.5 percent in 2016 and will grow 14 percent in 2017, driven by a strong growth of online video (51 percent and 32 percent growth, respectively).

“In 2016, the Chinese online ad market went through some turbulence and reshuffling,” Chen said. “China introduced its first set of online advertising regulations, which in the short term had reduced online advertising revenue, but in the long term, we expect to see a more sustainable online ad ecosystem from this development.”

On the other hand, after a period of rapid growth, TV has entered a third year of consecutive decline with a single-digit contraction. Many people are switching to online for content consumption and seeking wider range of content, from foreign content to user-generated content by popular vloggers. TV in China declined 2.7 percent in 2016, and IHS Markit expects a three percent drop in 2017.

china tv

Baidu, Alibaba and Tencent — known collectively as the B.A.T. in China –own 36.5 percent of the total ad market with a total of CNY 160 billion ($24 billion) in 2016. “The trio has absorbed large TV brand budgets and online ad budgets, and continues to expand aggressively into digital,” Chen said.

The trio made a total of 262 investments, 27 acquisitions and one joint venture between 2009 and 2016. Mobile app companies received most investments from the trio for that period.

“As Chinese companies go global, investments in nearby countries will increase,” Chen said. “Regions like Southeast Asia are benefiting from the rise of a middle class, consumerism, and a mobile-first young population. The emerging Asian markets present a huge business opportunity for the trio to export its video content, games and e-commerce abroad.”

Please login with linkedin to comment

IHS Markit Mobiel ad spends

Latest News

oOh!media Acquires Here, There & Everywhere-Owned Adshel For $570M
  • Media

oOh!media Acquires Here, There & Everywhere-Owned Adshel For $570M

oOh!media has acquired Here, There & Everywhere-owned Adshel for $570 million. The move follows a bidding war between oOh!media and APN Outdoor for the outdoor street furniture business. In April, Here, There & Everywhere (HT&E) received a revised offer of $470 million from oOh!media for Adshel, however, HT&E claimed it wasn’t the “most attractive” one […]

Daylight Agency Appoints Shelley Hammond As Director Of Agency Operations
  • Media

Daylight Agency Appoints Shelley Hammond As Director Of Agency Operations

The Daylight Agency’s significant growth has continued with the appointment of Shelley Hammond as Director of Agency Operations. Shelley is a leader in the global communications industry and brings vast experience following senior roles in major corporates as well as the agency environment. Shelley will be responsible for the commercial running of Daylight including client retention and […]

Host/Havas Takes Out Cannes Grand Prix With Palau Pledge
  • Advertising

Host/Havas Takes Out Cannes Grand Prix With Palau Pledge

Host/Havas has secured Australia’s first grand prix award at Cannes overnight, taking out the top gong for the direct lions with its work Palau Pledge. The work, which sees all visitors to the tiny island nation have their passport stamped with a pledge to be a good environmental citizen, which they must sign before entering […]

by B&T Magazine

B&T Magazine
Instagram Launches Long-Form Video
  • Technology

Instagram Launches Long-Form Video

Instagram unveils new eye-catching feature. Slicing onions while reading this will also make it eye-watering.

Ridley Scott Unveils New Directors Showcase At Cannes
  • Media

Ridley Scott Unveils New Directors Showcase At Cannes

Curated this year by Ridley Scott, famed director of Alien, The Martian and other classics, The New Directors Showcase at Cannes is now in its 28th year. Acting as a platform for talented new directors to have their work premiered to a global audience, Scott took to the stage in front of a full house […]

by B&T Magazine

B&T Magazine
ANZ, PHD & JCDecaux Harness The Power Of Data
  • Advertising
  • Campaigns

ANZ, PHD & JCDecaux Harness The Power Of Data

ANZ and media agency PHD have partnered with JCDecaux to launch a unique campaign that harnesses the power of data across three cities incorporating actual tram, train and bus timetable information to align with the new ANZ App.

Report: Consumers Are Hitting Play On Mobile Video
  • Technology

Report: Consumers Are Hitting Play On Mobile Video

Ooyala survey finds media companies created and processed nearly three times as much video content in Q1 as Media Companies Created & Processed Nearly Three Times As Much Video Content in Q1 2018 vs. Q1 2017.

MercerBell Calls In Two New Data Hires
  • Marketing
  • Technology

MercerBell Calls In Two New Data Hires

Proving many photos shot on an iPhone so often come out washed-out and grainy comes this article's accompanying pic.

Intrepid Travel Go Back 30 Years, Posting Classified Adverts In Newspapers
  • Campaigns

Intrepid Travel Go Back 30 Years, Posting Classified Adverts In Newspapers

Intrepid Travel has gone back in time and is placing classified adverts for a new ‘mystery expedition’ to places that yet mapped by Google.  The adverts to be placed in Courier Mail, Herald Sun and Sunday Telegraph are calling for intrepid people to join a journey with “long travel days, intermittent electricity, no Wi-Fi, cold […]

Watching tv and using remote control
  • Advertising
  • Media

GroupM Investment Forecast For Australia: TV On The Rise As Digital Slips

GroupM has updated its 2018 ad investment forecasts and released its initial 2019 outlook. GroupM predicts $24B in net new advertising investment this year, the best annual increment since the bounce back from the global recession in 2010 when $26B was added to investment. GroupM estimates total advertising investment will grow by 4.5 per cent this year […]

Indigenous Campaign Deemed Too Controversial By APN Media To Run
  • Advertising
  • Campaigns

Indigenous Campaign Deemed Too Controversial By APN Media To Run

Aboriginal Victoria’s campaign in support of Australia’s first-ever treaty legislation, Deadly Questions, has been deemed too controversial to run by one of Australia’s leading outdoor media providers, APN Media. Online platform Deadly Questions provides a safe space for people to ask questions and have them answered by Aboriginal Victorians, to learn more about their cultures, […]

Introducing: YouTube Music Australia
  • Technology

Introducing: YouTube Music Australia

The wait is over! Starting today, YouTube Music is available to everyone in Australia, New Zealand, the U.S, Mexico and South Korea in addition to 12 new countries including Austria, Canada, Finland, France, Germany, Ireland, Italy, Norway, Russia, Spain, Sweden, and the United Kingdom. Now fans around the world can find more of the music […]

Will PR Finally Earn Its Stripes At Cannes This Year?
  • Opinion

Will PR Finally Earn Its Stripes At Cannes This Year?

In this guest post, Haystac’s national general manager, Jason Carnew (pictured below), says with all this talk of Cannes at this time of year, it’s a kindly reminder that the PR business needs to get its act together in terms of awards, work and judging… All eyes on are Cannes as some of the best […]

Opinion

by B&T Magazine

B&T Magazine
Ex-DDBer Unveils Designer Headscarves For Cancer Survivors
  • Campaigns

Ex-DDBer Unveils Designer Headscarves For Cancer Survivors

Two-times cancer survivor, Frankie Good Stuff Award Winner, ex-DDBer and founder of Bravery Co. Emily Somers has collaborated with a range of top-notch illustrators to produce Australia’s first range of designer headscarves for young cancer warriors. She is now crowdfunding $40,000 to produce the scarves and donate one to all the young women in their 20’s […]

New Advertising Platform Launches Down Under
  • Advertising

New Advertising Platform Launches Down Under

Following its massive success in Europe, Asia and the UAE, the Polishoe concept, which brings a high-demand shoe polish service and HD digital advertising platform together, has landed in Australia.

Women In Media Profile: Aimee Buchanan
  • Media

Women In Media Profile: Aimee Buchanan

No Women in Media series would be complete without the irrepressible Aimee Buchanan. Read all her pressibles here.

by B&T Magazine

B&T Magazine
Set for blue sky, different clouds icons, cloud shapes, labels, symbols, icons. Flat graphic vector elements
  • Technology

PubMatic Unveils Cloud for Publishers And Tech Companies

PubMatic has launched PubMatic Cloud for publishers and tech companies looking to implement and control their own programmatic technology. By accessing PubMatic’s technology, global infrastructure and demand connections on a platform-as-a-service (PaaS) basis, clients are able to achieve full transparency and achieve greater control over their programmatic monetization. As programmatic trading becomes mainstream, innovations such as […]

Women In Media Profile: Claudine Hall
  • Media

Women In Media Profile: Claudine Hall

The Women in Media Awards are back for 2018! To celebrate this wonderful fact, and to recognise some of the killer women in our industry, we’ve created a women in media series – and have profiled some pretty inspiring women so far. This week, we chat with Bauer Media head of trade marketing Claudine Hall. […]

by B&T Magazine

B&T Magazine
Cancer Council and Target Tradies Tackle On-The-Job Skin Cancer Risks
  • Campaigns

Cancer Council and Target Tradies Tackle On-The-Job Skin Cancer Risks

Workers on construction sites receive five to 10 times more UV exposure every year compared to indoor workers. Target Tradies and Cancer Council have announced the launch of a partnership to help educate Australian construction workers about the importance of being SunSmart at work. With evidence showing that outdoor workers receive five to 10 times […]