PC growth slows as adspend moves to mobile

Feb 08, 2022 at 05:25 pm by admin


Growth in desktop advertising is set to slow as spend focuses on mobiles, according to a new UK report.

Digital Advertising: Emerging Trends, Key Opportunities & Market Forecasts 2022-2026, predicts that while desktop advertising will still increase – from US$97 billion (A$136 billion) in 2022 to US$142 billion in 2026 – its growth will not keep pace with that of advertising on handheld devices.

UK-based Juniper Research forecasts global digital advertising spending will increase 85 per cent, from US$407 billion in 2022 to US$753 billion in 2026.

Mobile in-app revenue will account for 56 per cent of global spend by 2026.

While privacy changes from Apple and Google are restricting the potential for effective ad attribution, there are still major opportunities, the report says. “The availability of the SKAdNetwork on iOS, for example, is a major opportunity for advertisers to access aggregated data, allowing them to target areas primed for growth, such as child-safe applications.”

Total mobile in-app advertising spend will increase from US$201 billion in 2022 to US$425 billion in 2026, “as brands strive to secure consumer trust”.

The report – which sells for GBP1990 (A$3779) – urges enterprises to clearly outline their data collection, storage, and usage policies, in order to optimise opt-ins.

“With recent data collection policy changes by technology giants creating further challenges for mobile attribution, enterprises must adopt a code of best practice to maximise return on advertising spend and support probabilistic attribution models,” research author Scarlett Woodford says.

The research identified video as a key channel for advertisers, with video ad spend expected to grow by 63 per cent over the next four years, as the success of channels such as TikTok and YouTube Shorts continues to drive demand for video advertising and justify premium charges. Marketers are urged to ensure that video ads are optimised for smartphone and tablet consumption, in order to maximise return on investment.

Juniper Research provides research and analytical services to the global hi-tech communications sector, as well as consultancy, analyst reports and commentary. A whitepaper is available here.

Sections: Digital business

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