SearchAppNetwork – Online Advertising Trends You Need to Know Now

Written by Zac Johnson
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Tracking and measuring ad performance is more important than ever and a number of companies are helping advertisers with reporting, analytics and measurement. New York-based SearchAppNetwork helps adMarketplace and Bing provide metrics on mobile app ad performance. Mobile app publishers do not have traditional URLs, which makes standard methods of reporting, tracking, and analytics difficult.

To address this issue, adMarketplace created SearchAppNetwork. Every time a Bing advertiser receives a click from a mobile app search ad in the adMarketplace publisher network, adMarketplace creates a URL for Bing advertisers to track performance in the Bing Ads Reporting UI.

For example, 2016 elections and Copa America in the US, UEFA Football in Europe, Summer Olympics in Brazil garnered incremental advertising spending opportunities, which improved media owner ad revenues in comparison to 2015 (when none of the above-mentioned events took place). MAGNA, a company that develops intelligence, investment and innovation strategies for agency teams and clients, suggests that 2016 events accounted for 1% of extra growth.

This article examines 2016’s global advertising activity in various countries and spheres with a look ahead to spot future advertising trends.
2016 ad growth was primarily stemmed from digital ad sales (which increased by 17%) whereas offline media ad sales (these channels include: linear TV, print, radio, and out-of-home) were relatively flat as they increased by 0.3%. If it wasn’t for the cumulative cyclical spending, which benefits mainly television, offline media sales would have slumped by roughly 2.0%, corresponding to 2015’s figures.

Likewise, when looking back at 2016, global net media owners advertising revenues increased by 5.7% to $493 billion (this is a 4.0% increase from in 2015). 2016 was the year that experienced the strongest growth since 2010 (which exhibited a post-recession recovery of 8.8% increase). In 2017, most of the growth emanated from North America as the US market (accounting for 37% of global ad dollars) reported its most prosperous growth rate in 12 years where growth decreased in several emerging regions. Such emerging regions include: Central and Eastern Europe (with a 6.0% increase), Latin America (with a 5.5% increase), Asia-Pacific (with a 5.3% increase) and Western Europe (with a 3.9% increase).

The following are key stats were presented in the Global Advertising Forecast Report 2016:

  • 63 markets experienced advertising growth this year and only seven (most notably Thailand) saw a decrease.• The highest growth rate was recorded in Egypt and the Philippines (both 17%). Among the top 20 markets, the fastest-growing country remains India (+14%) followed this year by a recovering Russia (+8.8%).
  • The 17% growth in digital ad sales are entirely driven by mobile advertising (+47%), while desktop-based ad sales stagnated (0%) in 2016 and actually shrank in many markets. Mobile advertising accounts for 45% of total digital ads by the end of 2016 and will account for 52% by the end of 2017.
  • Digital growth was driven by video formats (+35%) and social formats (+43%) while search remains the largest digital media format (+14% to 17.5 billion – 45% of total digital advertising) and banner ad sales declined (-5%).
  • North America remains the largest market, growing +6.7% to $191 billion; it is projected to slow down to just +1.8% in 2017.
  • Western European markets grew by nearly +4% for the third year in a row, to reach $100 billion. However, growth was significantly lower in the second half and we expect 2017 sales to slow down to +2.4%. Central and Eastern European ad sales increased by +6.0% to $16 billion, as the Russian market recovered.
  • Asia-Pacific media sales reached $148 billion (+5.3%) while recession-stricken Latin America managed to grow by 5.5%, thanks in part to the Brazil Olympics.

Looking ahead to the remainder of 2018 and beyond, according to a recent report by Zenith, online advertisers are expected to outspend TV advertisers by $40 billion this year. That means 40 percent of the world’s ad spending is expected to take place online in 2018, with social media ad spending is estimated to rise 21 percent to $58 billion while video ad spending is rising 19 percent to $32 billion in 2018.

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