Global digital advertising spend is expected to grow by an 18% compound annual growth rate over the next five years, rising from $184 billion in 2017 to $420 billion in 2022.
These figures include advertising spend across mobile, desktop, wearables and digital-out-of-home signage.
This is according to the Juniper Research report: Future Digital Advertising - AI, Ad Fraud & Ad-Blocking 2017-2022.
The study predicts the annual growth of online advertising spend will slow to only 4% globally by 2022, owing to the impact of ad-blocking adoption across desktop devices and the increasing usage of mobile devices as the primary means for browsing.
Statista notes digital advertising spending worldwide stood at an estimated $194.6 billion in 2016, and will amount to $229.25 billion in 2017. This figure is forecast to constantly increase in the coming years, reaching a total of $335 billion by 2020, it says.
Statista predicts social media will account for 34.5% of global digital ad spend in 2017, up from 23.25% in 2013. Desktop social media ad spend is expected to amount to $8.94 billion, whereas mobile will reach $23.39 billion.
Juniper says ad platforms will seek a greater degree of control over the types of ads being blocked through increased involvement in 'Acceptable Ad' initiatives.
Through these initiatives, platforms are beginning to shift focus, encouraging the use of adverts that are not blocked, adds Juniper. While revenue loss owing to ad-blockers will account for 17% of online advertising spend in 2017, this loss will be mitigated and increase by only 2% over the next five years, reaching 19% by 2022.
The research also predicts nearly 75% of all delivered digital ads will use artificial intelligence (AI) to target users in 2022. Data-sharing partnerships will enable publishers to increase targeting efficiency, utilising acquired data, such as geolocation, browsing cookies and cross-device identification, to provide end-users with highly tailored digital ads, it notes.
Despite objections to perceived invasions of privacy, platforms will continue to seek innovative means of data collection to provide personalised online ads, says Juniper.
"The critical factor for maintaining revenues lies in increasing the quality of experience for browsers. Whereas ad-blocking will eliminate intrusive ads, platforms leveraging AI for targeting will deliver more personal and accepted ads," notes research author Sam Barker.
Share
