According to a revised study from MAGNA GLOBAL, global online ad spending is expected to increase by 13.4% to reach $113.6 billion this year, with significant growth in social and mobile. For marketers, these statistics could be determining factors in how online ad budgets are allocated over the next few years.
Highlighted in an article from Marketing Charts, the results of the forecast study indicate that search will remain the dominant driver of online ad revenue with a projected growth of 14.6% to $52 billion. Mobile and social will reportedly experience growth rates of 54% to $12 billion and 39.6% to $8.2 billion, respectively, making them the second and third biggest drivers of online ad spending. According to MAGNA GLOBAL, Asian and African countries will experience the most ad spending growth as their digital markets increase. A number of factors, including stronger economies, political campaigns, and popular events (i.e., Winter Olympics, Soccer World Cup), will be in part responsible for the increase in social and mobile ad spending, reported MAGNA GLOBAL.
From the report, “For 2014, MAGNA GLOBAL predicts global advertising revenues to grow by +6.1% to $515 billion, which is a slight acceleration compared to our December forecast (+6.0%). This will be the highest annual growth since 2010, when the global advertising market grew by +8.2%, having rebounded from the worst recession year on record, 2009 (-11%).”
As online ad spending continues to increase over the next few years, social and mobile will likely have a large influence over how marketers decide to allocate budget dollars.