Internet will emerge as the most preferred medium of advertising with internet advertising command 36.6 per cent of global advertising, overtaking the current largest advertising medium television by 2018, claims a recent study.
ZenithOptimedia's Advertising Expenditure Forecast of December 2015 says that television's share which peaked at 39.7 per cent in 2012, and is estimated at 37.7 per cent in 2015, will fall back to 34.8 per cent by 2018.
The report highlights paid search as one of the key reasons for televisions loss of adspend share.
"Paid search is essentially a direct response channel (together with classified), while television is the pre-eminent brand awareness channel which is expected to remain so for many years to come. Television offers unparalleled capacity to build reach, while online video offers pinpoint targeting and the potential for personalisation of marketing messages," says the study.
As per the report, television will account for 44.7 per cent of display expenditure in 2015, and 42.9 per cent in 2018.
Within internet advertising, mobile advertising will emerge as the leading platform with it overtaking desktop and accounting for 50.2 per cent of all internet advertising.
The study reports that mobile advertising will total $114 billion in 2018, up from $ 50 billion in 2015. Mobile advertising is responsible for almost all of the growth in global adspend. The report forecasts it to grow at an average rate of 32 per cent a year between 2015 and 2018, and to contribute 87 per cent of all of the new ad money added to the global market during these years.
"Growth of the global ad market is being driven by advances in technology, especially mobile and programmatic tech," said Steve King, ZenithOptimedia Worldwide CEO Steve King. "But television remains by far the most important channel for brand communication, and online video, its digital offshoot, is increasing the audio-visual share of global display advertising."
The study further reports that, India, Indonesia and Philippines adspend is growing at double-digit annual rates. Between 2015 and 2018 the report estimates Philippines to expand by $1.2 billion dollars at growth rate of 13 per cent a year, while's India's ad spends will increase to $ 3 billion also at 13 per cent a year.
Indonesia is expected to show the biggest growth at 17 per cent a year, touching $ 4.1 billion.
BW Reporters
The author is Senior Correspondent with BW Businessworld
