Digital adspend is forecast to exceed $6.3 billion this year, which is about 45% of all advertising investment, a new forecast by Magna Global has found.
The Magna Global report shows the fastest growing areas will be video (up 30%) and social (up 34.6%), while investment in search is expected to grow a 12.9%.
By 2020, digital adspend will rise to $9.5 billion, about 58% of all media spend. Of this, two-thirds will be on mobile devices.
Magna Global managing director Victor Corones says advertisers should consider using a mobile-first approach when building marketing campaigns.
“As people continue to make digital channels their primary platform for entertainment and information, thinking digital and mobile-first ensures greater success of all media channels, both off and on-line, working and linking together effectively,” Corones says.
The study also serves a warning shot to linear TV as more viewers look for on-demand content across multiple devices. Think TV has announced its new CEO Kim Portrate, who will be charged with helping TV remain the platform of choice for advertisers as well as educating the market about TV's evolving multi-platform approach.
In 2015, linear TV (including FTA and subscription TV) dominated the $4.2 billion screen market with 94% of adspend. By 2020, linear TV services will drop to 79% of all adspend.
“On face value revenues to linear broadcast TV appear to decline over the next five years,” Corones adds.
“However, Australia’s total screen market, which includes video and linear TV, will continue to grow between now and 2020. When you reframe this market, linear TV will be competing in a growing sector. This creates immense opportunities for the TV networks to continue to evolve their product and meet peoples’ needs.”
The report also predicts a bright future for outdoor advertising. Adspend is forecast to grow 11.5% this year, being driven by the digitisation of OOH assets. Digital OOH panels ad spend growing 45%.
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