In an increasingly digital world, businesses will shift their advertising strategy from traditional sources to mobile electronic ones. The leading forecaster has stated that advertising revenues from electronic mediums are likely to exceed traditional sources by 2020.
Zenith Optimedia, owned by France’s Publicis, has predicted that by 2020 the amount business houses will spend on social media is set to catch up with newspaper based ad revenues.
The rapid expansion of social media on mobile devices along with speedy ubiquitous internet connectivity has triggered a huge shift in the way modern consumers access the news.
As per Zenith Optimedia, global expenditure for advertising on social media is set to corner nearly 20% of all internet advertising in 2019 and is likely to hit $50 billion.
It has predicted that advertising through social media is likely to overtake newspapers by 2020.
“Social media and online video are driving continued growth in global ad spend, despite political threats to the economy,” said Jonathan Barnard, head of forecasting at Zenith.
With rapid shifts in advertising trends, the media industry has increasingly shifted its advertisement budgets from traditional sources, including websites and newspapers, to smartphones, laptops and tablets.
Marketers are increasingly targeting consumers on social media sites with ads which blend into user based newsfeeds on platforms such as Snapchat and Facebook thus making them more effective than interruptive ad banners.
In its report forecast, Zenith has stated that global expenditure on advertising will maintain its 2016 grow rate of 4.4% in 2017 too. Big events, such as Britain’s EU referendum, the Olympic Games at Brazil and the U.S. presidential election have boosted advertising revenues this year.