Global ad spend surge predicted in 2016 | M&M Global

Global ad spend surge predicted in 2016

A positive global and regional outlook and solid growth in digital and mobile are driving an optimistic forecast for worldwide advertising expenditure in 2015 and 2016, according to agency network Carat.

graph3The forecast, based on data from 59 markets across the Americas, Asia Pacific and EMEA, predicts that global ad spend will grow by 4% in 2015 to $529bn, down only slightly from the prediction made in March.

Growth is expected to be at 4.7% in 2016, accounting for an additional $25bn spend.

The information shows that digital is now the main media used on spend in 10 of the markets analysed, with the US expected to join the list in 2018 when it is predicted that digital spend will overtake TV by over $4bn.

The strong predicted digital growth is accredited to high demand for mobile and online video particularly across social media. Growth rate in programmatic buying is predicted to increase by 20% year-on-year, while TV remains steady with a 42% market share in 2015. Cinema, radio and outdoor also show slight growth, with print as the only media to show ongoing decline in spend.

“Carat’s latest advertising spend forecast shows optimism balanced with realism during a year of increased volatility in major markets such as Russia and China,” said Dentsu Aegis Network chief executive Jerry Buhlmann.

“Noticeably, the landscape is becoming increasingly complex as previously grouped markets, such as the BRIC economies, are now operating differently and economic situations can quickly change markets at pace.

“Digital media continues to achieve outstanding growth as the effectiveness of this medium and results achieved, especially with millennials, warrants the upsurge in spend levels,” Buhlmann added.

Anna Dobbie

Reporter

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