Global ad spend to grow by 4% in 2015 to USD 529 bn: Carat forecast
Global advertising spend will grow by four per cent in 2015 to USD 529 billion, which is a slight decline from the 4.6 per cent predicted in March 2015, according to a report by Carat. The report predicted a growth of 4.7 per cent for 2016, accounting for an additional USD 25billion in spend.
Asia-Pacific recorded a global spend rate of 4.1 per cent and remained strong despite a slight decline in growth forecasts due to China’s economic downturn. The growth in APAC was driven by the high performing market of India at 11 per cent and the growing Australia market at 2.4 per cent.
Commenting on the forecasts, Nick Waters, CEO of Dentsu Aegis Network Asia Pacific, said, “Asia Pacific’s predicted growth has been strong in past years but with China’s economic deceleration and the devaluation of currency we see the impact on the region’s 2015 growth prediction revised from 5.2 per cent to 4.1 per cent. Digital media spend in China is expected to maintain growth, fuelled by the 56 per cent upsurge in mobile spend as consumer’s interact more through connected devices.”
Carat’s data also reports an encouraging outlook for 2016, with all regions predicted to increase year-on-year.
“Australia’s advertising expenditure is forecast to increase this year after four years of stalling as optimism about the economic conditions start to reflect in consumer and business behaviour. India has a positive story to tell, with a buoyant couple of years predicted and double digit growth. Spend has been boosted by the revival of investment following the election in 2014 and the ICC Cricket World Cup,” Mr Waters added.
Digital continues its solid growth as reflected in the upsurge in predicted share of advertising spend in 2015 of 24.3 per cent to 26.5 per cent in 2016. The medium was the principle media used based on spend in markets such as Australia, UK, Ireland and Canada.
Digital media is predicted to have a double digital growth at 15.7 per cent in 2015 and 14.3 per cent in 2016. This is driven by the high demand for mobile and online video advertising especially across social media, with 51.2 per cent and 22 per cent year-on-year growth expected this year.
There is a rapid growth in programmatic buying as well at a rate of 20 per cent each year. TV remains resilient with a steady 42 per cent global market share in 2015 and is predicted to grow by more than three per cent in 2016, with the upcoming Olympic Games and US elections expected to drive viewership.
The report also confirms year-on-year growth for all other media with updated predictions for 2015 highlighting year-on-year growth in cinema at 4.7 per cent, radio at 1.3 per cent and outdoor at 3.4 per cent.
Mr Waters explained, “Digital is still the fastest growing media segment in Asia Pacific, with predicted rapid expansion of over 20 per cent in 2015. This is driven by the high demand for Mobile and Online Video advertising especially across social media and programmatic buying is becoming an increasingly popular way to manage digital investment. TV is still the leading media in Asia Pacific but smart marketers will keep their eyes on the ever changing digital landscape to ensure they make the most of the rich opportunities there. The 2016 Rio Olympics in Brazil is not expected to boost ad spend significantly in Asia Pacific.”
