Zenith: internet ad spend to surpass TV this year

Zenith_global_ad_spend_2017The amount of money spent on internet advertising will surpass traditional TV advertising for the first time this year, according to ad agency Zenith.

Zenith’s new Advertising Expenditure Forecasts report predicts that global internet advertising expenditure reach US$205bn in 2017, compared to US$192 billion for TV advertising.

Publicis Media-owned Zenith estimates that internet advertising will attract 36.9% of all ad expenditure in 2017, up from 34.0% in 2016. However it added that the “sheer scale” of internet advertising means its growth rate is slowing.

“Internet ad spend grew 17% in 2016, down from 20% in 2015, and we expect growth to slow to 13% in 2017, 12% in 2018 and 10% by 2019 – though it will continue to add US$23bn-US$24bn a year,” said the report.

“In this environment it is vital that platforms and publishers address advertisers’ valid concerns about viewability and brand safety to secure sustainable growth. As the market matures, advertisers need to know for certain that their ads are being actively viewed by real people inappropriate environments.”

Overall, Zenith predicts global ad expenditure will grow 4.4% in both 2017 and 2018, reaching US$592 billion by the end of 2018.

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