Mobile, wearables to lead global ad spend forecast at $285B by 2020

By Jim O'Neill on Jun 20 2016 at 8:00 AM

Global digital advertising spend across mobile, wearable and online devices will exceed $285 billion by 2020, an increase of 78% from an estimated $160 billion in 2016.

Much of the growth will be in mobile and wearables, as brands and retailers continue to invest in mobile consumer engagement, said Juniper Research in its Worldwide Digital Advertising: 2016-2020 report.

Juniper posits that, despite the rising adoption of ad blockers, better audience targeting will drive higher click through rates and increase publisher revenues. A recent report from FairPage said some 416 million mobile users, mostly in Asia, use ad blocking technology.

“Publishers, such as Facebook, are utilizing their unprecedented audience knowledge to offer advertisers highly accurate targeting, thereby increasing the click through rates that advertisers are witnessing now,” said research author Sam Barker.

Publishers who are able to offer the most efficient targeting are set to become the most popular among advertisers.

The report highlighted that increased ad revenues will be further driven by faster real time bidding processes from ad exchanges. By streamlining the bidding process, page load times are reduced – increasing the user experience.

Juniper said ad revenues from mobile platforms surpassing those from online platforms, in 2015, offering publishers the opportunity to capitalize on a sector that is both growing and has a comparatively low adoption of mobile ad blockers.

However, mobile ad blocking adoption is expected to increase over the next five years as users bring the benefits of the technology onto their mobile devices. The research also warned that publishers will have to contend with the introduction of network level ad blocking, currently being deployed by the U.K. mobile operator Three.

Stay tuned.

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