The next four years will see revenues from online advertising catch up with those from TV. Paid search internet advertising will cling to its dominant position, says PriceWaterhouseCoopers (PwC).
Research published in PwC’s Global entertainment and media outlook for 2014-2018 suggests that total internet advertising revenue, which equalled USD 117.2bn in 2013, will grow at a rate of 11% per year, to USD 194.5bn by 2018. The shift is significant – five years ago, internet advertising revenue amounted to just USD 58.7bn, dwarfed by TV advertising at USD 132bn. Within internet advertising, video is predicted to grow at the fastest rate (24% per year), followed by mobile at 21%. Global paid search, which currently holds the lion’s share at 40% of total revenue, is expected to grow at a slower rate, but will retain its dominance.
However, multiple device ownership and an increase in mobile technology that lacks “cookie” tracking will make it harder for advertisers to target consumers. Over the coming years, the biggest challenge to those marketing businesses online will be keeping track of users, says PwC.