Based on data received from 59 markets across the Americas, Asia Pacific and EMEA, Dentsu Aegis Network’s latest global forecasts show that advertising spend will reach US$548.2 billion in 2016, accounting for a +4.4% year-on-year growth. The healthy outlook is fuelled by a buoyant 2016, marked by high-interest media events including the UEFA EURO championship, the Rio 2016 Olympics and Paralympics, as well as the upcoming US presidential elections.
In 2016, Dentsu Aegis Network reports a positive outlook for most regions with particularly robust growth in North America (+5.0%) and strong recovery in Russia (+6.2%), countering lower expectations in some markets. The US continues to show positive market confidence with forecasts revised up to +5.0% as the US presidential elections alone are expected to generate US$7.5 billion of incremental spend. Despite a slight moderation following the EU referendum, the UK continues to be the largest advertising market in Western Europe, with positive growth of +5.4% expected in 2016, exceeding the average rate of +2.9% in the region. Advertising forecasts are also set to remain strong in Latin America and Asia Pacific, with +10% and +3.9% growth respectively in 2016, in spite of Brazil’s lower expectations and China’s adjustments to its ‘new normal’ economic landscape.
Despite a slight decline due to volatility in some markets, the positive momentum of the global advertising spend is expected to continue into 2017 reaching US$570.4 billion, a +4.0% year-on-year growth, led by the ongoing upsurge of Digital media. As the leading media type in 13 of the markets analysed, Digital continues to grow at double-digit prediction levels of +15.6% in 2016, accelerating further at +13.6% in 2017. Driven by the high demand of Mobile, Online Video and Social Media, Digital media spend is expected to reach 27.7% share of total global media spend in 2016, increasing to a predicted 30.2% in 2017.
Whilst TV* continues to hold the highest share of total media spend of 41.1% in 2016 - boosted by high-interest media events - it is expected to grow at a more moderate rate of +2.3% in 2017 with a lower predicted share of spend at 40.3%.
In line with expectations, Print* advertising spend is forecast to continue to decline by -5.5% in 2016 and by -4.3% next year. Excluding Print, Dentsu Aegis Network’s forecasts reconfirm year-on-year growth for all other media in 2016, highlighting year-on-year positive growth in Cinema (+4.5%), Radio (+2.4%) and OOH (+3.5%), with predictions slightly revised down for 2017.
Commenting on the Dentsu Aegis Network advertising expenditure forecasts, Jerry Buhlmann, CEO of Dentsu Aegis Network, said:
“Our latest forecasts show continued confidence and positive momentum for global advertising spending. Expanding over three times faster than the global rate, Digital reaffirms itself as the unrivalled driver of growth. As the digital economy brings complexity, speed of change and disruption, it is only through Digital that brands can build engagement and remain relevant to their audiences on a fully addressable and real-time basis.”
“In a world where connectivity and convergence are now the norm, Mobile, Social and Online Video lead the rapid growth of Digital investments. With more flexible, targeted and data-led media solutions, Mobile, Social and Video are driving the demand for richer and more powerful consumer engagements, in the right place, at the right time.”
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Head of Communications