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Quick Hit: Ad Spend Booming Despite Ad Blockers

Posted on 10.24.2017
Digital advertising spend will grow by an expected 18 percent compound annual growth rate over the next five years, rising from $184 billion in 2017 to $420 billion in 2022, according to a new report from Juniper Research. 

Contrary to this trend, the new research, "Future Digital Advertising – AI, Ad Fraud & Ad Blocking 2017-2022" predicted the annual growth of online advertising spend will slow to only four percent globally by 2022, indicating the impact of ad blocking adoption across desktop devices and the increasing usage of mobile devices as the primary means for browsing.

The research also predicted that nearly 75 percent of all delivered digital ads will use AI as a means of user targeting in 2022. Data sharing partnerships will enable publishers to increase targeting efficiency, utilizing acquired data, such as geolocation, browsing cookies, and cross-device identification, to provide end-users with highly tailored digital ads. Despite objections to perceived invasions of privacy, platforms will continue to seek innovative means of data collection to provide personalized online 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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