London – Worldwide Internet advertising spend is set to grow 13% to $205 billion in 2017, according to Zenith Media, while advertising spend on traditional TV would reach a total of $192 billion.
Vittorio Bonori, Zenith’s Global Brand President, says that Internet advertising has been a rather dominant contributor to overall ad spend growth and it’s been boosted by technological innovation.
The report further predicts social media spending to reach $55 billion in 2019, ahead of printed ads at $50 billion.
Zenith says that social media advertising is one of the fastest growing sectors of digital advertising, having jumped 51% last year. Meanwhile, newspaper advertising continues to decline.
Reports shows that the global ad market has grown at a steady pace of 4%-5% since the beginning of the decade, and we expect it to continue to do so through to 2019. Their forecast for 2017 is for 4.4% growth, down slightly from 4.6% growth in 2016.
Reports forecast another 4.4% growth in 2018, followed by 4.2% in 2019. These rates are slightly below the growth rates that the IMF forecasts for nominal GDP.
Not surprisingly, bigger cities are driving the trend with increased innovation, migration and trade. There, populations tend to be younger with higher incomes.
Zenith Media report estimates that just ten cities including New York, London, Los Angeles, Jakarta, Tokyo, Shanghai, Manila, Beijing, Dallas and Houston will contribute 11% to the overall growth of global ad spending.
In 2016, $61 billion were spent to target the populations in these cities and expenditure is forecast to reach $69 billion in 2019.