Consumers on the move with their mobile phones are now the biggest target of major brands and retailers around the globe with digital advertising spend on mobile, wearable and online devices expected to blow out to a whopping US$285 billion by 2020.
With digital advertising spending at US$160 billion for 2016, global research house Juniper expects an average annual growth of 22% in mobile, wearables and online device digital advertising as advertisers continue to ramp up investment in “mobile consumer engagement”.
And, last year saw global ad revenues from mobile platforms surpassing those from online platforms, which Juniper says offers publishers the opportunity to capitalise on a sector that is both growing and has a comparatively low adoption of mobile ad blockers.
itwire.com
Juniper research author Sam Barker notes that publishers such as Facebook are utilising their unprecedented audience knowledge to offer advertisers “highly accurate targeting, thereby increasing the click-through rates that advertisers are witnessing now”.
According to Barker, publishers who are able to offer the most efficient targeting are set to become the most popular amongst advertisers.
Juniper’s report also highlights that increased ad revenues will be further driven by faster real time bidding processes from exchanges such as the Rubicon Project and Fiksu.
And Barker says that by streamlining the bidding process, page load times are reduced – increasing the user experience.
Juniper’s prediction of a big rise in advertising revenues is despite the “rising adoption of ad blockers”, as advertisers get better with audience targeting, driving higher click-through rates and increasing publisher revenues.
Barker expects mobile ad blocking adoption to increase over the next five years as users increase use of the technology onto their mobile devices.
He warns that publishers will have to contend with the introduction of network-level ad blocking, currently being deployed by the UK mobile operator Three.
Juniper’s whitepaper — 'Digital Advertisers vs The Ad Blockers' — is now available for download from the Juniper website together with further details of the full research.
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