This article explores the growth of Internet advertising, which is being driven by consumer demand for Internet access and the increased availability of high-speed mobile connection, and some of the key challenges for the future.
While total Internet advertising revenue will surge at an 11.1% CAGR to reach US$260.4bn by 2020, the full potential of the sector will remain unfulfilled, as consumers turn to ad-blocking to overcome their frustrations over ads’ impacts on their loading times and data consumption. More positively, programmatic advertising has grown rapidly, with more than half of digital ads in mature markets now traded automatically – opening the way to better targeting of premium ads.
While mobile advertising will grow at a CAGR of 19.6% to US$84.8bn in 2020, reflecting the ubiquity of mobile in consumers’ lives, mobile’s share of total global Internet advertising will still be just 32.6% even in 2020. Until the measurement and user experience of mobile ads improve, advertisers will stick with traditional media and other forms of Internet advertising, notably search.
The Australian Entertainment & Media Outlook 2016-2020 highlights growth through diversity with a focus on talent, geography and business models.
This follow-up report explores consumer attitudes and preferences towards wearable technology - what’s changed, what’s improved, and what the wearable future has in store for the US and beyond.