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Friday 10 October 2014

Global adspend forecast to grow 5.3%

Warc, 22 September 2014
LONDON: Global advertising expenditure is on track to grow 5.3% to $523bn in 2014, up from 3.9% in 2013, and will continue to record strong growth over the next couple of years, a new report has forecast.

According to the latest Advertising Expenditure Forecasts from media agency ZenithOptimedia, adspend growth is expected to continue at 5.3% in 2015 and then rise to 5.9% in 2016 on the back of rapid developments in digital advertising.

As technology helps to make internet adverting cheaper and more effective, the medium is expected to grow 17.1% this year and to account for almost a quarter (23.6%) of global advertising budgets.

That would exceed the combined budgets of newspapers and magazines (22.7%) for the first time.

Internet advertising will continue its growth trajectory over the next two years, the report said, and it is forecast that it will account for 28.3% of global adspend by 2016, or just 9.9 percentage points behind TV.

"Internet advertising is expanding rapidly as new technology makes it easier for advertisers to reach the right people at the right time with the right message, at an efficient price," explained Steve King, global CEO of ZenithOptimedia.

"The spread of ever more sophisticated mobile devices will help this expansion continue, sustaining steady growth in global adspend for the next few years," he added.

Reinforcing his comments, the report confirmed that mobile internet advertising is by far the fastest growing advertising segment.

Mobile advertising is expected to grow 67% this year – or seven times faster than desktop internet – and to account for a fifth (20%) of all internet advertising.

Its share of internet adspend is set to continue growing to 25% in 2015 and then up to 30% in 2016. That would mean mobile advertising will grow by $35bn between 2013 and 2016.

Warc's Consensus Ad Forecast, a weighted average of industry forecasts, including those from Zenith, finds adspend is expected to rise 5.8% in 2014, and a further 5% in 2015.

Digital is expected to be the largest driver for growth, with expenditure rising 16.4% and 15.1% in 2014 and 2015 respectively.


Data sourced from ZenithOptimedia; additional content by Warc staff

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