Spending on digital advertising is poised to grow by 18 percent over the next five years, rising from $184 billion in 2017 to $420 billion by 2022, according to a new report from Juniper Research.
The figures include advertising spend across mobile, desktop, wearables and DOOH (Digital-out-of-Home) signage.
Contrary to this trend, however, other Juniper research suggests 19 percent of online ad revenue will be lost to ad blockers and the increasing use of mobile devices as Internet browsers by 2022.
According to the research, ad platforms will seek a greater degree of control over the types of ads being blocked through increased involvement in ‘Acceptable Ad’ initiatives.
Through these initiatives, platforms are beginning to shift focus to encouraging the use of adverts that are not blocked. While revenue loss owing to ad blockers will account for 17 percent of online advertising spend in 2017, this loss will be mitigated and increase by only 2 percent over the next five years, reaching 19 percent by 2022.
75 percent of digital ads will use AI
The research predicted that nearly 75% of all delivered digital ads will use AI as a means of user targeting in 2022. Data sharing partnerships will enable publishers to increase targeting efficiency, utilising acquired data, such as geolocation, browsing cookies, and cross-device identification, to provide end-users with highly tailored digital ads. Despite objections to perceived invasions of privacy, platforms will continue to seek innovative means of data collection to provide personalised online ads.
Research author Sam Barker noted, “The critical factor for maintaining revenues lies in increasing the quality of experience for browsers. Whereas ad blocking will eliminate intrusive ads, platforms leveraging AI for targeting will deliver more personal and accepted ads.”
Juniper Research provides research and analytical services to the global hi-tech communications sector, providing consultancy, analyst reports and industry commentary.