According to MAGNA’s latest global ad revenue projections, digital advertising revenue will grow 14% this year, to $304 billion, representing more than half of the total global advertising economy for the first time (51%). Digital had been growing 18% to 20% the previous four years. MAGNA projects 11% digital ad growth in 2020 (to $338 Billion). That would bump digital up to 54% of the total global ad spend.
The bulk of digital advertising growth will come from ad impressions and clicks on mobile devices (mostly smartphones). Mobile ad sales grew by +24% in 2018 this year, to account for 68% of total digital advertising while desktop-based ad revenues will shrink (-3%), due to declining usage and ad blocking.
As far as traditional media goes, print will decrease by -10% to $51 billion and radio ad sales will shrink by -1% to $29 billion. MAGNA says radio has not yet developed its digital sales to the point where their growth would offset the erosion of traditional linear formats.
The largest advertising verticals globally remain retail, automotive, finance, personal care and technology. MAGNA expects technology, telecoms travel, finance, personal care to expand advertising spending in 2019 while retail and automotive will be flat or down in several markets.