AMPVerified Analyzes Tip Online Ad Trends for 2018

AMPVerified works with an industry leading search partner network, connecting the internet’s largest advertisers and publishers to consumers who express intent outside of legacy search engines. Leading brands and their agencies trust search engines to supply quality traffic resulting in incremental conversions.  Unfortunately, an estimated $7.4 billion was wasted on display ads alone in 2016, a figure that was expected to rise to $10.9 billion by 2021, according to Forrester. Other reports put ad fraud and non-viewable ad statistics even higher.

Search publishers depend on AMPVerified to provide their audience a native search experience delivering relevant advertisements with minimal latency and high yield and with ad growth growing globally, ad performance is more important than ever for advertisers and a top priority for publishers.

In 2018, the U.S., China, Argentina, Japan, India, and the U.K are anticipated to cumulatively drive 68% of the incremental investment. In this article we explore global media channels’ ad investment activity in recent years, trends and forecasts according to various countries.

We will begin with breaking down each of the countries described above according to the article ‘GroupM: Global Ad Investment Will Grow 4.3% in 2018; Six Countries to Drive 68% of Incremental Investment’:

  • “In the U.S., unemployment rate stands at 4.4% and is decreasing, real wages are growing 2.5% and rising, and thus it’s no surprise that consumer confidence is at a 17-year high.
  • China’s economy is rebalancing as demand for consumer goods has surpassed export growth (as of 2011) and fixed investment (since 2015), as well as the percentage of retail sales in GDP continues to rise into the upper 40s.
  • Argentina’s growth is the dividend of political dynamics and the appreciating peso.
  • In Japan, the world’s third-largest economy, Abenomics, the policies advocated by Prime Minister Shinzō Abe, have stimulated the strongest increase in consumer demand (3.4%) in three years.
  • U.K. ad investment growth is propelled almost entirely by “pure-play” digital as it reaches 60% share in a market that remains relatively stable but short-term focused as Brexit looms.
  • India is looking past recent reform disruptions (demonetization and sales tax). Continuing urbanization and rising wages are supporting strong consumer growth in finance, durables, services and retail.”

Television

Investment in television advertising will globally grow by 0.4% in 2017 and 2.2% in 2018; with that said, TV will lose one share point this year and an additional one in 2018. The television medium in China is showing signs of a slowdown as they recently disclosed that TV is growing 3% this year and 4% in 2018, with share stable (41%). According to GroupM (the media investment group of WPP),“we know that time spent with TV content remains healthy, but monetizing those hours gets harder as audiences diffuse across platforms more quickly than the industry can create measurement solutions”.

Digital

Overall digital investment growth is expected to reach 11.5% in 2017 and 11.3% next year. Moreover, its share is anticipated to increase from 34.1% this year to 36.4% in 2018. With that said, the digital channel growth (excluding China) is showing signs of a slowdown (10.6% in 2017 and 10.5% in 2018), however GroupM believes digital investment will exceed traditional TV in seventeen markets by year’s end in the following countires: Australia, Canada, Denmark, China, Finland, France, Hong Kong, Ireland, Hungary, Germany, Netherlands, NewZealand, Norway, Sweden, Switzerland, Taiwan, and the U.K. Digital investment is expected to surpass television advertising in the U.S. by 2020.

Google, Facebook and Amazon

Towards the end of Q3 of 2017, Google reported ad revenues of $24 billion while Facebook reported ad revenues of $10 billion. GroupM predicts Facebook and Google will account for 84% of total worldwide digital investment in 2017 (excluding China). Similarly, Google and Facebook will account for a whopping 186% of digital growth in 2017. This is an exceptionally challenging and competitive environment for other the digital publishers, especially since Amazon is emerging as one of the leaders in digital ad investment. Amazon’s on-platform search and display advertising along with their off-platform advertising revenues are in the low single-digit billions.

As major players continue their push into online advertising, it will make the work of companies like AMPVerified more important than ever to make sure search networks are delivering relevant advertisements with minimal latency and high yield.

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