Global ad spend growth forecast to ease in 2017: Warc
Advertising spend growth rates for a number of channels are forecast to ease in 2017.
The latest ‘Consensus Ad Forecast’ from Warc predicts that 2017 will see a growth of 4.2% in global advertising spend, slowing from the 4.7% growth seen in 2016.
With the exception of newspapers and magazines, all major media channels are expected to grow next year, albeit slower than previously.
Growth for the two largest will ease, with TV only forecast to grow 1.1% compared with 2.8% this year, and internet advertising forecast to grow 13% next year, compared with 14.6% in 2016.
Global ad spend will decrease for newspapers and magazines, with newspaper spend forecast to fall 6.1% and magazine ad spend forecast to fall by 4.5%
Mobile ad spend is set to increase by an impressive 34%, but still shows an easing growth from 2016’s 47.1% growth.
Across all channels, ad spend in Australia is forecast to continue at the same rate from 2016-2017 of 3.8%.
“We have identified a common trend among more mature markets whereby increasing investment in internet – particularly mobile – ad formats is driving headline growth. Applying consensus trends to Warc’s ad spend data shows that mobile will grow to be the world’s third-largest ad channel by the end of 2016,” says James McDonald, senior research analyst at Warc.
The USA saw a large ad spend increase, this year with 5.1% increase expected by year’s end, most likely on account of the presidential election campaigns and Olympics. It is forecast to cool to 2.8% in 2017.
The nation with the highest ad growth this year is India, with an expected total growth of 13.3% which is forecast to continue with 13.4% increase next year.
Sources for the Forecast include Carat, eMarketer, GroupM, Magna Global, Nikkei Advertising Research Institute, Pitch-Madison, Pivotal Research Group and ZenithOptimedia.
* * * * *
Purchase a subscription to Marketing for the latest insight and opinion on advertising and consumer trends shaping the industry
* * * * *
Image copyright: dolgachov / 123RF Stock Photo