Half of all global advertising dollars will be spent online by 2020, matching the worldwide combined “offline” ad spend, such as TV, print ads and billboard posters, according to recent forecasts. Media agency Magna predicts that digital media will take 44 percent which is equivalent to $237 billion, of all ad money spent globally in 2018 and that figure has the potential of reaching 50 percent, or $291 billion, by 2020. All forms of digital advertising are on the rise with search advertising being the biggest of them all. Advertisers are expected to spend $113 billion across the globe next year, a 12 percent increase from 2017. Most of this search ad spend is on mobile, which is due to take 63 percent. Brands are expected to spend $147 billion on mobile advertising of all types come next year, an increase of 27 percent from 2017.
Early this year, Adidas said that they would shift the ad dollars from TV and put more focus on digital advertising with their Chief Executive Kasper Rorsted saying that its younger consumers engaged with the brand mainly via their smartphones.
“All of our engagement with the consumer is through digital media and we believe in the next three years we can take our online business from approximately 1 billion euros ($1.06 billion) to 4 billion euros and create a much more direct engagement with consumers,” he told CNBC.
Various mobile platforms are taking on new ad formats all the time. For instance Snapchat recently revealed a new feature through which users can swipe left for friends’ snaps and right for editorial content and shows, as well as sponsored posts. Brands who are increasingly investing in social media will in no doubt be happy if new ad formats result in more consumer engagement.