Newspapers and other print advertising have been taking big hits — and it’s not over yet.
Research from Zenith Media posits that global advertising expenditure for social media ads will grow 72 percent between 2016 and 2019, rising from $29 billion to $50 billion.
The data comes from Zenith’s new “Advertising Expenditure Forecasts,” showing that social media advertising will account for 20 percent of all internet advertising in 2019, up from 16 percent in 2016.
“Social media advertising is growing at 20 percent a year and by 2019 will be just one percent smaller than newspaper advertising,” notes Zenith. “By 2020, social media will be comfortably ahead.”
That makes newspapers’ loss of classified ads back when Craigslist for rolling seem like a distant memory.
“Social media platforms have benefitted from the rapid adoption of mobile technology, using it to embed themselves into their users’ daily lives,” according to Zenith. “For many users, social media is the focal point of their social lives as well as their main source of news. Social media ads blend seamlessly into the news feed, and are much more effective than interruptive banner formats, especially on mobile devices.”
Big growth areas? Online video advertising, for starters.
“Online video advertising is growing almost as quickly as social media, at 18 percent a year, and by 2019 it will total $35.4 billion U.S. across the world, fractionally ahead of the amount spent on radio advertising (US$35.0 billion). Online video is also benefiting from the spread of mobile devices, as well as the development of high-speed mobile data connections and improvements in handset displays.”
And it’s a worldwide phenomenon.
“Social media and online video are driving continued growth in global ad spend, despite political threats to the economy,” said Jonathan Barnard, Head of Forecasting at Zenith. “Just four markets in Asia will provide more than a third of global ad growth to 2019, counterbalancing recession in Latin America and the Middle East.”
You can read more about it here.