ZenithOptimedia Examines Current State of Digital Marketing

LONDON: According to the New Media Forecasts report from ZenithOptimedia, 66.5 percent of individuals in key digital markets will have a smartphone by the end of 2018 and 19.8 percent will have a tablet.

In 47 leading countries measured by the firm, smartphone penetration rose from 41.6 percent in 2013 to 49.5 percent in 2014, and it will reach 55.7 percent this year. Smartphone adoption is highest in the Asia Pacific and Western Europe, and ZenithOptimedia expects these regions to maintain their lead for the next few years. Singapore has the highest level of smartphone penetration, at 89 percent at the end of 2014, and this is forecast to increase to 97 percent by 2018, as the government pushes ahead with its plan for universal Wi-Fi access. Spain and Ireland follow close behind, with 86.7 percent and 83 percent penetration in 2014, respectively. The other top ten markets are also all in the Asia Pacific and Western Europe: South Korea, Norway, Japan, Austria, Sweden, the Netherlands and Hong Kong.

Across the same 47 countries, tablet penetration rose from 5.3 percent in 2012 to 14.8 percent in 2014, and is forecast to reach 19.8 percent in 2018. Hong Kong tops the ranking of highest penetration markets for tablets, with 77 percent penetration in 2015, which is expected to increase to 91 percent in 2018. Singapore comes second for tablet penetration, with 64 percent penetration in 2014 and 82 percent expected in 2018; the Netherlands takes third place in both years, with tablet penetration growing from 58.3 percent to 75 percent over the period.

ZenithOptimedia estimates there will be 1.9 billion internet users at the end of 2015, representing about 60 percent of all internet users across the world, and 3.9 percent more than there were at the end of last year. The annual rate of growth has fallen from 7.9 percent in 2011, when there were 1.5 billion internet users in these markets, and it is expected to drop to 2.5 percent in 2018, when there will be 2 billion users.

The top market for internet penetration is South Korea, where access is universal and has been since 2011. Closely behind are northern European markets such as Denmark (98 percent penetration in 2014) and the Netherlands (96.7 percent). In all, seven markets in the new report had internet penetration above 90 percent by the end of 2014: South Korea, Denmark and the Netherlands, plus Norway, Switzerland, Finland and Sweden. By the end of 2018, the firm predicts that 15 of the 47 markets will enjoy more than 90 percent penetration. South Korea is forecast to remain the top market for internet penetration in 2018, while Argentina and Estonia enter the top ten rankings, displacing Singapore and Ireland, which in 2014 were in eighth and ninth place, respectively.

“The rapid spread of mobile technology is transforming media consumption and marketing communication across the world,” said Jonathan Barnard, ZenithOptimedia’s head of forecasting. “For more and more people, their smartphone or tablet is the first place they look for information or entertainment. Marketers need a mobile-first approach to communicate with these people effectively.”