According to new figures from eMarketer, advertisers will spend worldwide $592.43 billion in 2015, which is an increase of 6.0% over 2014.
Currently, the top five spenders in each advertising category—total paid media, digital and mobile—are the US, China, Japan, Germany and the UK.
While the UK lags Japan and Germany in total media spending, its digital ad market outpaces both, with digital and mobile ads representing significantly higher shares of overall advertising than its two predecessors in the overall market. Otherwise, the rankings are consistent across all media markets.
The US remains the dominant advertising market worldwide spending $189.06 billion on ads in 2015, an amount that represents 31.9% of the global ad market. That figure is also higher than the aggregated total for China, Japan, Germany and the UK. Through 2018, the US will essentially maintain that share, dipping to only 31.1%, and will continue to account for more in total media ad spending than the rest of the top five combined, eMarketer revealed.
Mobile advertising is the key driver of growth around the world, and advertisers will spend $64.25 billion worldwide on mobile in 2015, an increase of nearly 60% over 2014. That figure will reach $158.55 billion by 2018, when mobile ads will account for 22.3% of all advertising spending worldwide.
eMarketer’s latest figures for worldwide mobile ad spending are higher than previous forecasts, due to faster-than-expected growth in China’s mobile ad market. According to new data, marketers will spend $6.39 billion on mobile ads in China in 2014, up 600.0% from just $913 million last year; this total will increase another 90.0% to $12.14 billion in 2015. And it is expected that China will surpass both the UK and Japan to become the second-largest mobile ad market in the world.
Without doubt, China dominates the digital ad market, but actually it is Indonesia that sees the most impressive growth, eMarketer said. In fact, digital advertising spend in Asia-Pacific is expected to rise 30.3% to total $46.59 billion this year, according to eMarketer’s latest estimates of digital ad spending worldwide.
Just like in 2012 and 2013, the region will boast the second-biggest share of digital ad spending worldwide, trailing only North America, at 31.8% vs. 37.3%. This trend will continue through 2016, though Asia-Pacific will gain share during that period at the expense of North America. In 2017, Asia-Pacific will pass North America in total digital ad spending share worldwide, at 36.9% vs. 35.7%.
With investments in online and mobile advertising, totalling $23.70 billion this year, China will maintain the largest share of the region’s digital ad market, at 50.9%—a trend that will continue through 2018. Japan and Australia will rank second and third, with respective digital ad spending totals of $9.07 billion and $4.52 billion this year, eMarketer estimates.
As mentioned, in Asia-Pacific, Indonesia will be the leading country for digital ad spending growth by a long shot, at a whopping 98.0% this year. Indonesia sits at the bottom when it comes to digital ad spending, as brands there still heavily invest in traditional media like TV and print. However, as internet and smartphone adoption continue to grow rapidly, marketers will continue to switch ad spend to digital channels. Over the course of the forecast period, eMarketer expects the country to surpass India and South Korea in digital ad dollars by 2016 and 2018, respectively.
China will also see impressive digital ad spending growth of 45.0% this year, which will be mainly driven by phenomenal gains in the country’s mobile ad market. According to eMarketer’s latest estimates, marketers will spend $6.39 billion on mobile ads in China in 2014, up 600.0% from just $913.0 million last year.