Mobile to account for 75% of internet use in 2017: Zenith report
With the rise of smartphone usage and their affordability with cheaper models, mobile devices will account for 75 per cent of global internet use in 2017, according to Zenith’s new Mobile Advertising Forecasts. The report finds that there has been a rapid increase in mobile’s share of internet use from 40 per cent in 2012 to 68 per cent in 2016 and expects it to reach 79 per cent by 2018.
This first edition of the Mobile Advertising Forecasts looks at mobile advertising and mobile technology in 60 key countries around the world. It forecasts the rising amount of time consumers devote to mobile internet use, the spread of smartphones and tablets, and the growth of mobile ad spend.
The leading countries
According to the report, the countries with the highest levels of mobile internet consumption are dispersed across Western Europe, Asia and North America. The report estimates that Spain leads the way for mobile internet access and will account for 85 per cent of internet use in 2016. Hong Kong comes second, with 79 per cent of internet use being mobile, followed by China (76 per cent) and the United States (74 per cent). Italy and India come joint fifth, at 73 per cent each.
By 2018, Hong Kong is estimated to have the highest mobile internet use, accounting for 89 per cent of total internet use. The report forecasts that China will be second with 87 per cent and Spain third with 86 per cent, followed by the United States and Italy at 83 per cent each, and India at 82 per cent.
The rapid rise in the penetration of mobile devices has been the driving force behind the increase in mobile internet use. In 2012, just 23 per cent of people in the 60 markets surveyed had a smartphone, and four per cent had a tablet. Smartphone penetration has now reached 56 per cent, and increase of 2.4 times over four years. Zenith forecasts it to rise to 63 per cent by 2018.
Tablets, on the other hand, do not have that wide a reach as smartphones as they are considered more of a luxury item than a necessity. About 15 per cent of people in the 60 markets surveyed own tablets. This number is expected to reach 17 per cent in 2018.
Western Europe and Asia came up as the leaders when it came to the highest levels of smartphone penetration. According to Zenith’s report, Ireland is estimated to have the highest smartphone penetration this year, at 92 per cent, followed by Singapore (91 per cent), Spain (88 per cent), Norway (86 per cent) and South Korea (84 per cent).
By 2018, Zenith expects Ireland to remain in first place, with 94 per cent penetration, followed by Switzerland and Singapore at 92 per cent each, and Norway and Taiwan at 91 per cent each.
The report also highlighted that tablet penetration varies extremely widely between markets. In 10 of the 60 markets surveyed, tablets have penetration levels above 50 per cent, and in another 10 they have penetration levels below 10 per cent.
Just three per cent of people in China have tablets, which drags down the average substantially, since China accounts for 27 per cent of the population in these 60 markets. In India, which accounts for another 26 per cent, only six per cent of people have tablets. The highest level of tablet penetration is in Singapore (at 75 per cent), and the lowest is in China and Thailand (three per cent).
Zenith forecasts mobile advertising to overtake desktop advertising in 2017, increasing its share of global internet advertising to 52 per cent from 44 per cent this year. In 2018, it predicts mobile advertising to account for 60 per cent of all internet advertising. That year mobile advertising expenditure will total USD 134bn, which is more than will be spent on newspaper, magazine, cinema and outdoor advertising put together.
The report underlines the need for brands to become mobile-first in their digital communication: all assets – from brand websites to video ads – should be built to deliver the best and most effective experiences on mobile devices. The report highlights that advertisers also need to think about consumer mobility, not just mobile devices. During the day consumers shift their attention from tablet to desktop to smartphone, sometimes while watching TV, so advertisers need to build brand experiences that are coherent across screens and devices.
“Mobile devices are already the primary means of accessing the internet across the world. Countries in Western Europe, Asia and North America are leading the transition, but mobile technology is spreading rapidly everywhere. Next year mobile devices will become the main vehicle for internet advertising as well,” said Jonathan Barnard, Head of Forecasting at Zenith.
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