Digital advertising market for the new year: The digital ads market is booming
Digital advertising is set to take off in 2017 with a global $2 trillion digital advertising market forecast to grow to $3.3 trillion by 2021, according to market research firm Ovum.
That’s up 70% from last year, and a record increase for the market.
Ovum says the rise in digital advertising will be driven by social, search, video and other new ways of advertising.
The industry is expected to grow by more than $5 billion a year in 2021.
The sector is expected by Ovum to grow at a rate of 20% to 28% a year through 2021, with revenue expected to increase by nearly 30% to 50%.
Ovum said digital advertising is expected continue to be the top source of revenue growth for the digital advertising industry.
The report comes as Ovum estimates that global advertising spending is set for a record $1.5 trillion in 2021, an increase of 20%, and that digital advertising revenue is set at $1 trillion, an 11% increase from last month.
It also noted that digital revenue growth will likely continue in line with expectations from traditional media companies.
The report said digital ads were set to reach $3 billion in the first quarter of 2021, up 22% from the same quarter last year.
Ovums forecasted that digital ads will grow by 22% a percentage point to $1 billion in 2021 from $900 million in 2021 and a 17% increase in 2021 compared to last year’s forecast.
Ovumer said the total number of ad-sales and display advertising engagements will continue to grow.
In total, Ovum expects digital ad spending to reach an annualized $3 trillion in the next three years.