Daily Management Review

Report says in 2017, Seventy-five Percent of Internet Use will be Mobile


10/29/2016




Report says in 2017, Seventy-five Percent of Internet Use will be Mobile
As s a growing number of consumers around the world access the web on smartphones and tablets, seventy-five percent of internet use will be mobile in 2017, up slightly from this year.
 
This forecast was made by media buying agency Zenith this week.
 
In 2016, 71 percent of internet consumption would be on mobiles, Zenith had previously estimated. Following the release of its "Mobile Advertising Forecasts" report, Zenith said that sixty percent of global internet advertising dollars will come from mobile advertising in 2018.
 
It said that mobile advertising expenditure will be "more than will be spent on newspaper, magazine, cinema and outdoor advertising put together" in 2018 and it will total $134 billion. The report titled Mobile Advertising Forecasts   looked at the situation in 60 key countries around the world with regards to mobile advertising and mobile technology.

The report also forecast that from 40% in 2012 to 68% in 2016 to 79% by 2018, the mobile proportion of internet use has increased rapidly.
 
Global mobile advertising expenditure in 2016 to be $71 billion, Zenith, a unit of French ad agency Publicis Groupe SA, had estimated.
 
Brands are rushing to Facebook Inc, Snapchat and Google where they can market to viewers as more ad dollars shift to the digital realm from television.
 
"In four years, you've gone from 40 percent to 70 percent (of total internet use) in mobile," said Scott Singer, a digital media executive and managing director of innovation consultancy firm DDG Inc.
 
Stoking deals in the media, entertainment and communications businesses and as dollars are shifting being driven by this trend, he added.
 
Telecommunications companies are being pushed to marry content and digital distribution by the rise of mobile data consumption, including video. While also attracting advertisers to grow ad revenue, the telecommunications companies are betting that online video and other content that are relayed over their internet and wireless networks would be able to lure viewers to online platforms.
 
In order to diversify into content distribution, AT&T Inc on Saturday said it plans to buy media company Time Warner Inc for $85.4 billion. Verizon Communications Inc has proposed to buy internet company Yahoo Inc. Both the companies want to help marketers deliver targeted ads by leveraging user data.
 
The report said that dispersed across Western Europe, Asia and North America, are the countries with the highest levels of mobile internet consumption. The report estimated that Spain, with 85% of internet use through the mobile platform in 2016, accounted for mobile internet accounts for the highest proportion of total internet use. With 79% of internet use being mobile, Hong Kong comes second, and is followed by China with 76% mobile internet usage and the United States is fourth with 74% usage. With 73% mobile internet usage, both Italy and India come joint fifth.
 
The report expects that accounting for 89% of total internet use, Hong Kong is slated to have the highest mobile internet use by 2018. The other countries in order of mobile internet consumption would be China with 87%, Spain with 86%, the United States and Italy with 83% each, and India at 82%.
 
(Source:www.reuters.com & www.zenithmedia.com) 






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