11.5% is expected growth in sponsored digital ads in 2018, to reach $77.6 billion, according to Dentsu Aegis Network’s latest Ad Spend Forecasts report
Even as growth forecasts in the global advertising market remain muted, digital, or more specifically mobile, will act as the growth driver. For the first time, mobile ad spend is set to overtake desktop ad spend, and account for 56 percent of the global digital advertising market in 2017. Of the total forecasted ad market of $563.4 billion in 2018, digital will account for $215.8 billion, within which mobile will account for $116.1 billion.
These findings are part of multinational digital marketing company Dentsu Aegis Network’s Ad Spend Forecasts report released in June. The study notes that in India, mobile ad spend will be 41 percent of the total digital spend of $1.1 billion in 2017, clocking a 50.7 percent year-on-year growth this year and 43.6 percent in 2018.
“India is the fastest growing advertising market globally and our forecast is that overall ad spend will grow at about 13 percent. Digital is growing three times faster and has already become the third largest medium of advertising [after television and print],” Ashish Bhasin, chairman & CEO-South Asia, Dentsu Aegis Network, tells Forbes India adding, “Even in India, mobile [advertising spend] will overtake desktop probably by 2018, though on a smaller base.”
The Dentsu report covers 59 markets across the globe and the forecasts are produced bi-annually.
Bhasin adds that the ad industry in India is about $6.6 billion, of which digital accounts for 16 percent. And mobile will drive digital faster because of falling data prices and handset costs. “In the last one year, of every 100 new internet users, 90-95 are coming through mobile. So the penetration is going deeper,” says Bhasin.
Check out our Festive offers upto Rs.1000/- off website prices on subscriptions + Gift card worth Rs 500/- from Eatbetterco.com. Click here to know more.
(This story appears in the 18 August, 2017 issue of Forbes India. To visit our Archives, click here.)