Advertising, Public Relations & MarketingGeneral

In 2019 advertising on social networks will represent 20% of all advertising on the Internet

Global advertising investment in social networks will grow 72% between 2016 and 2019, from 29,000 million dollars to 50,000 million dollars, according to the new Zenith Advertising Forecast for Investment.

Advertising on social networks will account for 20% of all Internet advertising in 2019, compared to 16% in 2016. Advertising in social networks is growing by 20% per year and in 2019 it will be only 1% lower than newspaper advertising ($ 50.2 billion for social networks compared to 50.7 billion dollars in newspapers). For 2020, social networks will enjoy a comfortable advantage. The platforms of the social networks have benefited from the rapid adoption of the mobile technology, using it to incorporate themselves into the daily life of their users. For many users, social networks are the centerpiece of their social life, as well as their main source of news. Ads on social networks combine perfectly with the news section and are much more effective than banner-intrusive ones, especially on mobile devices.

Online video advertising is growing almost as fast as social networks (18% per year) and in 2019 35,400 million dollars will rise worldwide, slightly ahead of the investment in radio (35,000 millions of dollars). Online video also benefits from the proliferation of mobile devices, as well as the development of high speed mobile data connections and improvements on device screens. It is increasingly common for brands to use online video as a complement to television, but for the majority it does not make sense to use it as a substitute. Even in 2019, online video advertising will not reach the fifth part (18%) of television advertising.

Since Zenith estimates that global advertising investment will grow by 4.4% in 2017, the same percentage we estimate for 2016. It is a good result, given the unexpected results of the referendum on EU membership in Great Britain and the US presidential elections, which have increased the political uncertainty and increased the risks of restrictions on international trade. 2017 also has to face a tough comparison, as in 2016 there were four-year events such as the US elections, the Summer Olympics and the European Football Championship, which boosted advertising investment. After 2017, they expect prolonged and stable growth in global investment; a growth of 4.4% is expected in 2018 and 4.1% in 2019. Growth in global advertising investment has been stable since 2010, growing between 4% and 5% per year, generally close or lower to the percentage of global GDP growth. Before the financial crisis, advertising grew above the economy at times of expansion and diminished rapidly in those of recession, with frequent changes in the percentage of year-on-year growth.


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