Global ad spend its predicted to increase from US$407 billion this year to US$753 billion in 2026, marking a 85% growth. According to Juniper Research's latest report, mobile in-app revenue will account for 56% of global spend by 2026. More specifically, total mobile in-app ad spend will increase from US$201 billion in 2022 to US$425 billion in 2026, as brands strive to secure consumer trust. As such, the report said enterprises must clearly outline their data collection, storage, and usage policies, to optimise opt-ins.

Meanwhile, desktop ad spend is predicted to grow from US$97 billion in 2022 to US$142 billion in 2026, despite a diversion of spend towards mobile and the implementation of data protection regulation impacting cookie policies. Video ad spend is expected to grow by 63% over the next four years, as the success of popular distribution channels, such as TikTok and YouTube Shorts, continues to drive demand for video advertising and justify premium charges. Hence, it is important for marketers to ensure that video ads are optimised for smartphone and tablet consumption.

juniper research

Emerging technologies that will impact digital advertising

The report also listed three key emerging technologies that will impact digital advertising: blockchain, 5G connectivity, and connected smart home devices.

1. Blockchain

While Juniper Research believes that the use of blockchain within the digital advertising ecosystem can increase industry transparency, one major factor limiting the adoption is the fact that the technology is not yet interoperable.

According to Juniper Research, this means that individual blockchain networks are not inherently open and are unable to communicate properly with one another. Even if Google or Facebook, for example, implemented a blockchain solution, Juniper Research said there is no guarantee that the technology would be compatible with other networks. Hence, an industry-wide blockchain solution would need to be implemented for the technology to be adopted fully for digital advertising purposes.

2. 5G connectivity

5G will present an opportunity for a new level of conversation-based interactions and personalisation; enabling consumers to interact with brands in real-time. This growth in 5G-enabled rich media services will increase in tandem with a wider inter-industry move towards conversational commerce and omnichannel messaging.

On the messaging front, there has been a transition from one-way messaging such as SMS to two-way conversations. Juniper Research expects this trend to occur in the digital marketing space too, with consumers engaging with brands and enterprises on the basis of their campaigns, asking questions and gaining additional information about the product on offer.

3. Connected smart home devices

As IoT connected networks continue to expand, Juniper Research anticipates that the number of smart devices present in consumers' homes will inevitably increase. While consumer privacy must remain a priority, Juniper Research believes that due to user interest in targeted advertisements, users will be willing to divulge certain personal information to receive ads that are targeted to their interests.

However, this might be slightly different for a digital voice assistant. According to Juniper Research, the broadcasting of unsolicited promotional content via an in-home smart device would feel far too intrusive to the consumer, potentially resulting in complaints and customer dissatisfaction. Hence, it is unlikely that digital advertising will be implemented as a universal voice assistant feature in the foreseeable future, Juniper Research said.

Photo courtesy: 123RF


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