Digital ad revenue to hit $285bn by 2020

The amount of money advertisers will spend on mobile ads will grow significantly in the next four years, a new report by Juniper Research suggests. This is despite the fact that there's also an uptake in mobile ad blockers.

According to Juniper's report, global digital advertising spend in mobile, wearable and online devices will hit $285 billion by 2020, up from an estimated $160 billion this year. That represents an average annual growth of 22 per cent, it was said.

The increased spending will be driven mostly by the publishers' ability to target ad messages with filigree precision.

“Publishers, such as Facebook, are utilising their unprecedented audience knowledge to offer advertisers highly accurate targeting, thereby increasing the click through rates that advertisers are witnessing now,” said research author Sam Barker.

Publishers who are capable of the most accurate targeting will also be most popular among advertisers, he concluded.

Real-time bidding processes from exchanges like Fiksu or the Rubicon Project will drive ad revenues, it was said. Streamlining the bidding process will reduce load times, improving the user experience.

Ad revenues on mobile platforms surpassed those on online platforms, it was said, but Juniper also warns about the uptake on mobile ad blocking software. Publishers will have to learn to live with network-wide ad blocking, a new technology that Three is looking to introduce soon.

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