Advertising is at the forefront of delivering a targeted and promoted message to existing and potential customers. It mainly serves to inform consumers about a brand’s product, enhances the brand’s image, and the announcement of new products. In all, global advertising expenditure for 2018 amounted to $579 billion, a 40.8% increase from a decade ago.
According to Zenith’s Advertising Expenditure Forecasts, internet advertising will account for 52% of global advertising expenditure in 2021, marking the first time it exceeds the 50% mark. That is a 5% increase from the current year’s global ad spend that internet advertising accounts for this year. However, the growth rate has slowed down as the internet ad market approaches maturity with only 12% growth in 2019, and the numbers are expected to drop to a further 9% in 2021.
Still, online video and social media channels that make up for the internet ad spend growth are steadily growing. These channels are benefiting from the constant technological advancements such as faster connection speeds, better smartphones, and improved advertising targeting. The recent release of the 5G technology will also bring brand experiences to another level on these channels. Nevertheless, this does not mean that other traditional media are being abandoned. Radio ad revenue increases by 1% annually, while cinema ad expenditure grows at a 12% rate a year. Most major brands still prefer traditional media to create broader mass public awareness and to reinforce the brand’s value.