Video And Mobile Advertising Steal The Show In Five Year Outlook

A background banner illustration of a laptop with magical rainbow streaming out of it
SHARE
THIS



Video and mobile advertising will experience explosive growth in the next five years according to IPG Mediabrands’ intelligence and investment division Magna Global.

Mobile advertising in particular is expected to account for 70% of the total digital advertising market spend and nearly 40% of the whole advertising market by 2019.

New data from Magna Global charts the degree to which the digital revolution in media will impact traditional and new formats over the next five years.

The Magna Global report says that video and social formats will continue to be the principal growth drivers of digital advertising. It signals that the traditional TV industry is reaching its tipping point in the “screen market” as the online video industry is expected to quadruple over the next five years and move from being a $200 million category to a $845 million category. Social media is anticipated to grow at an even faster rate from $518 million in 2014 to $2,345 million in 2019.

Search will continue to hold the lion’s share of the online market, however Magna Global says the newer formats will encroach on the share of dollars going into this sector. In 2014 search will represent 52.2% of the digital advertising market and 19.0% of the total advertising market. By 2019 search will represent 43.8% of the internet advertising market and 24.5% of the total advertising market.

“2014 has been a turning point for the media industry with dramatic shifts away from the print sector continuing and a predicted -3.2% drop in the television market,” said IPG Mediabrands Australia’s chief investment officer Victor Corones. “As these channels move into the digital world we see that the talk of convergence between traditional and online is well and truly embedded and that by 2019 digital will represent 55.9% of total media expenditure, up from 36.5% this year.”

Victor Corones

Victor Corones

In other media channels Corones said Magna Global was predicting growth. In outdoor, digital out of home formats would drive the sector. The compound annual growth rate (CAGR) for digital out of home is predicted to be 21.2% from 2014 to 2019 versus the total outdoor and cinema market which is expected to grow 5.1% over the same period. Corones said confidence in this sector was driven by outdoor’s ability to broadcast mass messages in an increasingly fragmented market.

Underpinning Magna Global’s prediction is a CAGR for the total Australian advertising market of 5.1%. Corones said he was expecting improvements in 2015 with the market set to grow 3.8%. The growth for 2015 is seen as an optimistic outcome driven by the growth in digital channels and prefaced by the expectation that consumer and business confidence improves locally.

Worldwide, Magna Global have predicted growth of +4.8% in 2015, slightly ahead of the Australian market. The stronger economic environment expected for next year (+3.8% for real GDP compared to 3.3% in 2014) will offset the negative impact caused by the absence of non-recurring drivers like the Winter Olympics and the Soccer World Cup.

“The transformation of all media channels is happening at an unprecedented rate,” said Corones. “Convergence is already here and the lines between traditional and digital have disintegrated. As 2014 draws to a close we predict that advertising revenue for the year will end only 1% up on the 2013 results,” he added.

Latest News

Women In Media Profile: Danni Wright
  • Media

Women In Media Profile: Danni Wright

We'd be headlining Danni Wright's Women in Media profile the "Wright stuff" if it wasn't utterly predictable and naff.

by B&T Magazine

B&T Magazine
Industry Generates A Record $10.5m For Social Impact
  • Media

Industry Generates A Record $10.5m For Social Impact

UnLtd, the media, marketing and creative industry’s social purpose organisation has announced a total industry contribution of $10.5m to social impact in FY18. The total value of funds, services, inventory and time donated by the media, marketing and creative industry increased by 21per cent compared to the previous financial year due to a growth in […]

Posterscope Promotes Two
  • Media

Posterscope Promotes Two

Posterscope, Dentsu Aegis Network’s specialist out-of-home agency, has promoted Ryan Hedditch to the newly created position of national head of strategy and Samantha Summers to Sydney Group Business Director. In his new role, Hedditch is charged with driving the continual improvement and transformation of the Posterscope offering to clients and partners. Summers’ promotion will see her lead […]

Outbrain Accelerates Growth With APAC Promotions
  • Media

Outbrain Accelerates Growth With APAC Promotions

Native discovery platformOutbrain has announced several movements in its regional leadership team, with plans to make more new hires. This comes on the heels of two senior appointments it made in February, after closing a record year in the region with expansion into new markets. Yoav Tourel has been promoted to head of sales for […]

Clems Syd & Extra GUM Unveil YouTube Digital Stage
  • Media

Clems Syd & Extra GUM Unveil YouTube Digital Stage

YouTube EXTRA Gum has launched EXTRA Support Acts, a program created to support Australia’s up and coming musicians by transforming pre-roll ads on YouTube into a digital support stage. It has been created in partnership with Clemenger BBDO Sydney as creative lead, Universal Music Australia and BRING for talent and music strategy and content, MediaCom and YouTube. The […]

OMD Australia Tops 2018 RECMA Rankings
  • Media

OMD Australia Tops 2018 RECMA Rankings

OMD Australia has taken the top spot for Australia’s Number 1 media agency in size, according to RECMA’s 2018 ‘Overall Activity Volume Rankings’ report released last week. Additionally, the company was named first in profile classification with a dominant profile for the 3rd consecutive year, along with vitality ranking and structure ranking. Furthermore, OMD Australia was also named […]

Red Agency Bolsters Sydney Team
  • Media

Red Agency Bolsters Sydney Team

Judging by the image, it seems Red Agency may have had no staff whatsoever prior to this hiring spree.

Nine Appoints Editor For 9Honey
  • Media

Nine Appoints Editor For 9Honey

B&T's editor coincidentally spilled honey on his shirt while typing this. And by typing, we mean copy and pasting.

Y&R Sydney Scores Best&Less   
  • Advertising
  • Media

Y&R Sydney Scores Best&Less  

Y&R wins Best&Less amid rumours the clothing shop its changing name to 'Somewhat OK&Reasonably cheap'.

Women In Media Profile: Judy Sahay
  • Media

Women In Media Profile: Judy Sahay

B&T's Women in Media profiles are like a wave washing over you. Even more so if an actual wave washes over you.

by B&T Magazine

B&T Magazine
How B2B Companies Can Use Their Customer Data More Effectively (And Why They Need To)
  • Marketing
  • Opinion

How B2B Companies Can Use Their Customer Data More Effectively (And Why They Need To)

In this opinion piece, SalesPreso co-founder and CMO Joel Thomson (pictured below) explains how B2B companies can use their data more effectively and deliver a personalised customer experience that matches their B2C counterparts. From the Cambridge Analytica scandal to the EU’s recent GDPR legislation, this year has prompted individuals all over the world to consider […]

Opinion

by B&T Magazine

B&T Magazine
M&C Saatchi Launches THIS Film Studio
  • Advertising
  • Marketing
  • Media

M&C Saatchi Launches THIS Film Studio

Not one to rest on its laurels, M&C Saatchi unveils new production studio it hasn't called 'Not One To Rest On Laurels'.

Creative Agency Launches Project Management Tool ‘Hassl’
  • Advertising
  • Technology

Creative Agency Launches Project Management Tool ‘Hassl’

Yesterday at TedX Melbourne the team behind award-winning, Melbourne-based agency Your Creative launched their new tech venture Hassl, the project management platform taking on Trello and the likes. With the belief there was a better design solution to project management, the platform has been developed over the last two years in collaboration with their clients. […]

ABC Axes Tom Ballard’s Tonightly
  • Media

ABC Axes Tom Ballard’s Tonightly

It's one of the ABC's edgier, controversial shows, but Tom Ballard's proven too edgy and controversial for ABC chiefs.

Taboola Strengthens APAC Programmatic Offering With New Partnership
  • Advertising
  • Media

Taboola Strengthens APAC Programmatic Offering With New Partnership

Global discovery platform Taboola has announced a strategic partnership with Wider Planet, Korea’s largest demand-side and data management platform. The partnership builds on Taboola’s programmatic efforts in Asia-Pacific, and will bring together Korea’s largest demand platform for agencies and brands to provide access to Taboola’s global audience through premium publisher placements. The partnership means advertisers […]

The Haus Picks Up Two New Clients
  • Marketing

The Haus Picks Up Two New Clients

The Haus announces two new client wins. Admittedly, not as good as winning three, but far better than losing four.