Dive Brief:
- Adjusting its estimate from March, eMarketer now predicts a smaller increase in ad spending this year, adjusting from $577.79 billion to $569.65 billion with paid media increasing 5.7%.
- Digital ads overall are expected to reach over $170 billion representing just under 30% of the ad marketplace and growing at 18%.
- Mobile is growing particularly rapidly at just over 70%, and grabbing more than $72.06 billion of the digital ad market.
Dive Insight:
Even though worldwide ad spending is still increasing, eMarketer adjusted its estimate from March lowering the total amount due to slowed spending growth and lower spending in Latin America, North America and Western Europe. Digital advertising in general, and mobile advertising specifically, are the key drivers of spending growth.
EMarketer analyst Shelleen Shum said, "Advertising investments in traditional media like TV, newspapers and magazines have been negatively affected by increased spending in digital formats, such as online editions for magazines and newspapers, and digital video replacing traditional TV."
These results are in line with earlier estimates from eMarketer predicts that mobile will overtake desktop ad spending, and a Forrester report that found video ad spending on mobile is expected to grow 21% annually at a time when broadcast TV ad spending is down 10% and cable ad spending down 3%. Traditional media still commands the majority of ad dollars, but digital is on a steady upward trend.
