Summits Yellow

Digital ad spend to grow to $420bn, despite ad blocking putting dent in online revenue

Tyrone Stewart

Ad buyingDigital ad spend is set to grow by a compound annual growth rate of 18 per cent over the next five years, rising from $184bn in 2017 to $420bn in 2022.

Despite this, online ad spend alone is predicted to see its growth slow to just four per cent by 2022, as ad blockers result in revenue losses of 19 per cent, according to Juniper Research. Although, thee online ad revenue lost is only expected to grow two per cent over five years – from the 17 per cent to be lost this year.

Juniper anticipates that these revenue losses will see ad platforms look to gain greater control over the types of ads being blocked by becoming more involved in ‘Acceptable Ad’ initiatives.

The research also found that around 75 per cent of all delivered digital ads will use AI for user targeting by 2022. Publishers will use data – such as geolocation, browsing cookies, and cross-device ID – to increase targeting efficiency and provide tailored digital ads.

“The critical factor for maintaining revenues lies in increasing the quality of experience for browsers,” said research author Sam Barker. “Whereas ad blocking will eliminate intrusive ads, platforms leveraging AI for targeting will deliver more personal and accepted ads.”

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