Internet Advertising Outlook 2013-17
On a global level, Internet advertising continues to defy the world’s wider economic problems, growing in terms of both volume and its share of the global advertising pie. Internet advertising reached US$100.2bn in 2012, representing year-on-year growth of 17% and a 20% share of the global advertising market. Fuelled largely by substantial growth of the market in the developing world—although many of the developed markets will continue to see growth too—the market will reach US$185.4bn in 2017, a growth rate of 13% over the five-year forecast period. By that point, Internet advertising will take a 29% share of the total global ad market, making it the world’s second-largest advertising medium
Search remains the dominant form of online advertising globally, despite that its share dropped by two percentage points to 41% in 2017 (moving increasingly towards mobile and video advertising). Where Google is not the market leader—such as in Japan and South Korea—search tends not to be the dominant online advertising format.
The display market is set to grow at a CAGR of 10% over the forecast period, reaching US$49.9bn in 2017. Advertisers will have to consider new ways they can best use display advertising.
Classifieds will grow at a CAGR of 7%, reaching US$20.2bn in 2017. Online classifieds are set to take over from their print equivalents in developing economies in the next five years. However, this segment’s share of the total online ad market will be lower in 2017 than in 2012.
The online video-advertising market boomed in 2012, with an increase in annual revenue of approximately US$1bn, representing year-on-year growth of 33%. That growth is set to continue over the forecast period, with revenues reaching US$12bn in 2017, boosted by a 26% CAGR.
Mobile advertising is finally set to take off properly, with growth forecast across all regions over the next five years: a 27% CAGR will ensure mobile advertising revenues will be in excess of US$27bn in 2017, constituting 15% of Internet advertising revenues.