A new Zenith prediction states that 75 percent of usage will occur over mobile devices next year.
Zenith has released a new mobile web trends forecast that showed a notable growth in smartphone based internet use next year. It predicted that three quarters of all 2017 internet use will occur over mobile devices.
This could prove to be important insight for marketers that are deciding on their mobile ad budgets.
Last year, Zenith’s mobile web trends prediction was that 2016 would see 71 percent of internet use from smartphones and tablets. It also estimated that 60 percent of global internet advertising dollars would be spent for mobile ads by 2018. This latest prediction was released in the company’s Mobile Advertising Forecasts report.
The report stated that in 2018, marketers would spend $138 billion on mobile advertising. That figure “is more than will be spent on newspaper, magazine, cinema and outdoor advertising put together,” stated the report.
The Zenith mobile web trends forecast also predicted this year’s mobile ad spend to be $71 billion.
A growing number of ad dollars are shifting from TV to digital, particularly focused at smaller screens. Google, Facebook and Snapchat are now prime platforms for mobile marketers. According to DDG Inc. consultancy firm managing director of innovation and digital media exec, Scott Singer, “In four years, you’ve gone from 40 per cent to 70 per cent (of total internet use) in mobile.”
This mobile marketing trend is sending ad dollars away from traditional media such as newspapers and television and is directing it to media, entertainment and communications platforms.
Telecommunications companies are bringing digital distribution and content together as mobile data consumption – particularly video – is on the rise. The goal to this mobile web trend is to draw consumers to view digital content on mobile devices while appealing to advertisers. Companies from small businesses to giant corporations. This has been reflected in the recent announcement that AT&T was seeking to purchase Time Warner Inc and that Verizon Communications Inc is interested in Yahoo Inc. In both cases, the goal is to help leverage available user data for targeting ads on behalf of marketers.
Despite its declining hold on the global digital ad marketplace as a whole, smaller screen marketing is up.
Online commerce giant, Alibaba Group Holding Inc., may find its global mobile ad market share climbing higher this year. This, despite the fact that the company’s grip on the digital advertising space is starting to slide.
eMarketer’s data shows the Chinese ecommerce giant will have a smaller portion of global digital ad spend.
The research firm’s prediction is that the digital ad spend drop will be around 0.9 percent to 4.6 percent in 2016 compared to the figures from 2015. That said, the mobile ad market share will be climbing at the same time. That increase will be significant, as its share will rise to 10.9 percent. Last year, that figure had been 8.7 percent.
In the Chinese market, Alibaba will continue to be the leading player in both those markets. The massive company will hold onto 39.7 percent of the tremendous $27.9 billion Chinese market for mobile advertising. Furthermore, it will boost its share of digital ad spend to 28.9 percent. That is an increase of nearly 4 percent compared to 2015.
The strength in the mobile ad market share growth is due to the company’s customer retention strategy.
Andria Chen, an eMarketer analyst, explained that the company’s strategy to hold consumers within its entertainment and online ecosystem explain its mobile ad success. The company has been acquiring several different companies within those spaces.
For instance, Alibaba purchased the Youku Tudou video streaming platform in 2016. According to eMarketer, that particular purchase may “aid sales growth” for Alibaba during this quarter. It may also help the company to assemble more complete user profiles.
Furthermore, the ecommerce giant has also made investments in a number of other areas supporting growth. For example, it has raised capital for an affiliate platform for local services called Koubei. The funds came from international investors. Equally, it invested more in building out logistics operations within locations such as villages and towns that are not yet easily accessible. It’s easy to see that the company is seeking to amp up its share in more than just the mobile ad market.
