Global advertising spend is predicted to grow by 4.5% to US$538 billion in 2016, a study by Carat has revealed. This is being driven by the US presidential election, Rio Olympic Games and Euro 2016 football championships.
The transition to digital continues and it is predicted to account for 27% this year and 29.3% in 2017. This is due to the growth of mobile (+37.9%), online video (+34.7%) and social media (+29.8%).
In Australia, ad spend growth is forecast to be a more modest 2.5% this year and 2.3% in 2017.
“The Carat Ad Spend forecast for total advertising market growth in 2016 is 2.5%. This growth is largely due to election-related spending in the first half, boosted further by activity associated with the Olympics in the third quarter,” says Simon Ryan, CEO of Dentsu Aegis Network and Carat ANZ.
“Highlights of growth in 2016 are online ad spend, achieving 41.7% share of total ad spend, making Australian advertisers the second highest investors in online; second only to the UK.
“Online display is the fastest growing digital sector, forecast to grow 14% in 2016, to achieve 34.4% share of total online investment.”
Carat Ad Spend report confirms the steady decline in print with newspapers declining by 5.4% and magazines by 1.7% in 2016. There will be positive year-on-year growth for all other media, including outdoor (3.4%), radio (2.2%) and cinema (2.8%).
The Carat Ad Spend report also predicts that out of home advertising, currently 6.5% of market share, will overtake radio (7.8%) in 2019.
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